How to Build Credit in Canada

Building credit can feel confusing because you often need credit to get started. However, learning how tobuild credit in Canada is a good first step.

A good credit score is important for getting loans, like for a house or car. In fact, every financial choice you make can affect your credit score and impact your ability to get jobs, loans, credit cards, utilities, or even rent an apartment. Lenders check your credit score to see how reliable you are with credit and to decide your interest rates. Since your credit rating is so important, it’s worth taking the time to improve it.

This is why it’s so important to build a credit history and use credit wisely. Plus, if you need to borrow money later, having a credit history and a good credit score will help you get better terms, like lower interest rates.

The good news is that improving your credit score is pretty simple. It just requires some time and effort. Let’s start with the basics.

What are credit scores and credit history?

First, let’s explain credit. Credit is a way for you to borrow money. When you pay it back, you pay the lender (like a financial institution) the original amount you borrowed (the principal) plus an extra fee (interest) for using their money. How you pay back your borrowed money, among others, will affect your credit score and credit history.

Credit scores

Ever wondered whatcredit score ratings actually mean? Your credit score is a three-digit number that shows how well you’ve managed credit in the past and predicts how likely you are to repay future debt. In Canada, credit scores range from 300 to 900, withlower credit scores below 560 being a “poor” or “bad” score, higher scores above 760 being an “excellent” score, and theaverage credit score sitting around 680.

Every time you borrow money or pay a bill, information about your credit use, payment history, missed payments, and outstanding balances is sent to credit bureaus. This information builds your credit history, and your credit score is a numerical summary of that history. If you use your credit responsibly, you get more points, but if you have trouble managing your credit, you will lose points.

Credit history

Your credit history is a record of how you’ve managed credit collected by banks, stores, and other lenders. Banks, financial institutions, employers, and landlords can request to check your credit report by running a credit check, with your permission, to decide whether to lend to you, rent to you, or hire you.

When you get credit from a lender, like through a credit card, mortgage, personal loan, car loan, or student loan, you have the chance to build your credit history. Paying on time, having a mix of different types of credit, and keeping balances low can help you build a positive credit history. In Canada, most of this information stays on your record for seven years.

A high credit rating can make it easier to get loans like a mortgage or credit card or apply for utilities. It can also help you get better terms, like lower interest rates. A good credit score can show landlords that you pay your bills on time, helping you rent a home. Even some employers check credit reports to see if candidates manage their money well.

How credit works in Canada

Credit is the ability to borrow money or get something valuable now and pay it back later, usually with interest. Common sources of credit include credit cards, student loans, mortgages, and other loans.

Two important aspects of credit are your credit scores and credit reports. Both show what kind of borrower you are, but in different ways:

• Credit Reports: Detailed records of your credit behaviour, including payment history, types of credit, account balances, and the length of your credit history.

• Credit Scores: Numbers that help lenders predict how likely you are to repay a loan on time, calculated from information in your credit reports.

There are various ways to calculate credit scores, with different models placing importance on different factors, such as payment history or account balances.

How a credit score is calculated

It’s hard to know exactly how your actions will affecthow your credit score is calculated because credit bureaus and lenders don’t share their exact formulas.

Here are some factors that may affect your credit score:

• How long you’ve had credit

• How long each credit account has been on your report

• If you carry a balance on your credit cards

• If you miss payments regularly

• The amount of your outstanding debts

• Being close to, at, or above your credit limit

• The number of recent credit applications

• The type of credit you’re using

• If your debts have been sent to a collection agency

• Any record of insolvency or bankruptcy

Lenders have their own rules about the minimum credit score needed to lend you money. If you have a good credit score, you may be able to negotiate lower interest rates with your lender. However, your credit score might be different from the score a lender sees because lenders may prioritize different information.

How do you get a credit report?

Your credit report is a summary of your credit history. It’s created when you borrow money or apply for credit for the first time. Lenders send information about your accounts to the credit bureaus.

People who can see your credit report include:

• Banks, credit unions, and other financial institutions

• Credit card companies

• Car leasing companies

• Mobile phone companies

• Employers

• Landlords

• Insurance companies

• Governments

• Retailers

Who are Canada’s credit bureaus?

In Canada, we have two credit bureaus:

• Equifax

• TransUnion.

They both track your Canadian credit history and give you a credit score based on how well you manage your money in Canada.

How to build credit with no credit history in Canada

If you’re just beginning your credit journey here in Canada, it can be hard to figure out where to start. But don’t worry. Our experts here at KOHO have put together the following tips to help you out:

Get a secured credit card

One option is to open a secured credit card, which requires you to make a deposit upfront. This deposit is typically equal to your credit limit, which is the amount you can spend on your card. So, for example, if you deposit $500, you can spend up to $500.

This card works like a regular credit card, and making on-time credit card payments helps build a positive credit history. When you use the card to make purchases and pay your balance in full and on time each month, this positive behaviour is reported to the credit bureaus, which can help boost your credit score.

Secured cards are good for beginners because they help build credit when you can’t get a traditional credit card due to low or no credit history. Then, as your credit history grows, you may be able to move up to an unsecured or regular credit card.

Pay your bills in full and on time

Once you’ve received your secured credit card, use it wisely by making purchases and paying off your credit card balance in full and on time every month. This is one of thefastest ways to build credit in Canada.

Most financial institutions offer a 21-day grace period after your billing cycle ends, during which you can pay your credit card bill without interest or late fees. If you find yourself in too much debt and can’t pay the full amount, always pay at least the minimum payment by the due date. You’ll find this amount on your credit card statement.

While paying your rent or utility bills (like water and electricity) on time won’t boost your credit score, paying them late can hurt it. So, always pay your utility bills on time and in full. However, if you consistently pay your rent and utility bills on time, you can request your landlord or utility companies to report these payments to the credit bureaus. Normally, these bills aren’t included in credit reports, but if you have a good payment history and not much credit activity, you can ask to have these payments added to help boost your credit score.

Become an authorized user on someone else’s credit card

If you have a parent, spouse, or someone else you trust with good credit, you can become an authorized user of their credit card. This means you’ll get a credit card in your name, but it will be linked to the main account holder’s credit report. You’ll benefit from their good credit habits, as well as your own. However, keep in mind that if either of you has bad credit behaviour, it will affect both of your credit scores.

Have someone co-sign your loan

If you need a loan, ask a family member or loved one to be a co-signer. A co-signer is someone who agrees to be responsible for the loan if you don’t pay it back. This allows lenders to use the co-signer’s credit score instead of yours. By having a co-signer, you may get better loan terms or qualify for a loan you couldn’t get on your own. However, if you don’t repay the loan, your cosigner will have to pay the debt.

Get a cell phone

Cellphone companies also report to the credit bureaus, so paying your phone bill in full and on time will help build your credit history. However, many phone providers require a credit check before giving you a monthly plan, so you might not qualify right away.

Once you get your secured credit card and start building your credit history, you can try applying for a phone plan again. Some providers might even let you have a plan without a credit history if you already have a credit card. Be sure to call different providers to see where you can qualify.

Monitor your score

Credit scores change, so it’s important to stay updated. Check your report through Equifax or TransUnion, or see if your financial institution offersfree credit score checks.

Look for errors in your credit card or loan accounts and your personal information. Reports from Equifax and TransUnion might be a bit different, so check both regularly. Mistakes on your credit report can be signs of fraud, so report any issues to the credit bureaus right away.

How to build credit with a bad credit history in Canada

If you have a bad credit history in Canada, figuring out how tobuild your credit score after bankruptcy or a series of bad decisions or situations can be tough. Just like we did for no credit history, our experts have put together the following tips to help you out:

Check your credit score

First, check your credit score to see what’s affecting it the most.

Your credit score is influenced by:

• Payment history (35%): Whether you pay bills on time or have missed payments.

• Credit utilization (30%): How much credit you have available and how much you’re using.

• Credit age (15%): How long you’ve been using credit.

• Credit mix (10%): The different types of credit you have.

• Hard inquiries (10%): The number of recent credit accounts you’ve opened and applications you’ve made.

Also, check your credit report for errors, like incorrect personal information or accounts opened fraudulently. If you find mistakes, dispute them with the credit bureaus. Disputing won’t affect your credit score directly, but if the information changes, your score might improve.

Pay off your debt

Having a lot of debt can make lenders hesitant to give you more money. It’s important to work on paying off your debt, even if it seems difficult.

There are two ways to tackle debt:

• Avalanche method: Pay the minimum on each debt, then use any extra money to pay off the debt with the highest interest rate.

• Snowball method: Pay off the smallest debt first.

The snowball method can feel good because you see debts disappear quickly, but the avalanche method saves you more money in the long run.

Include debt repayment in your budget and work on reducing what you owe to improve your credit score.

Apply for a balance transfer credit card

A balance transfer means moving your balance from one credit card to another. This is a common way to manage credit card debt. The goal is to move your balance from a card with a high interest rate to one with a lower rate. Some cards offer very low rates for a short time, like 0% for six months, while others have low rates all the time but fewer perks. Transferring your balance to a balance transfer credit card helps you pay off your balance faster and pay less interest.

Get a guaranteed approval secured credit card

As we mentioned earlier, secured credit cards are great for people starting to build or improve their credit. To get one, you need to put down a cash deposit, which usually becomes your credit limit. This deposit acts as a safety net for the card issuer, making it easier for you to get approved.

Another option when trying to rebuild your credit is to look for a guaranteed approval credit card. Guaranteed approval credit cards are unique secured credit cards you can get approved for, no matter what your credit score may be. You just need to meet a few basic requirements:

• You must live in Canada.

• You must be of legal age to sign contracts.

• You need to put down a minimum security deposit.

These secured credit cards are designed for people with bad credit or those just starting to build their credit history. They work like other secured credit cards; the only difference is they’re guaranteed. They require a security deposit, which usually becomes your spending limit. You typically can’t spend more than your deposit, although some card issuers may allow a higher limit based on your credit history. These cards are meant to help you build or rebuild your credit.

Take thevirtual credit card from KOHO, for example. Our virtual credit card offers instant approval and no credit checks, and since it’s virtual (meaning you don’t have to wait for a physical card to arrive in the mail!), you can start building credit by spending in-store and online right away.

Keep your borrowing under control

Credit bureaus monitor your “credit utilization ratio,” which means how much debt you have compared to your credit limit. This accounts for 30% of your credit score, meaning it’s the second most important factor and has a significant influence on your score.

Try to keep your total spending on your new credit card under 30% of your overall credit limit. For example, if your credit card limit is $1,000, try to have less than $300 on your balance at the end of each month.

Remember, credit card interest rates can be high, so only borrow what you can comfortably repay each month so that you’re not stuck in a debt cycle of only paying off the minimum balance each month.

Always make your minimum payments

Your payment history accounts for 35% of your credit score, which means it affects your score the most. This means it’s absolutely essential that you make all minimum payments on time every single month. Otherwise, your lenders will report back to the credit bureaus that you have missed or late payments, which will significantly lower your credit score.

Furthermore, if you have credit cards with high balances that you’re trying to pay down, whenever possible, pay more than just the minimum. Paying extra each month helps you reduce debt faster because you’re paying toward the balance and not just in interest, and it’ll start to show that you can manage and pay off your debt.

Take out a small personal loan

If your budget allows, getting a small personal loan and paying it back on time can help build your credit. It shows you can handle borrowing and repaying money. If you can’t qualify for a loan by yourself, consider asking a friend or family member with good credit to co-sign the loan. But remember, as we said before, if you don’t repay the loan, your cosigner will have to pay the debt.

Limit your number of credit checks

Every time you apply for credit, like a new credit card or a credit limit increase, the bank or lender will check your credit report. These checks are called “hard hits” and can lower your credit score by a few points. Too many hard checks in a short time can significantly drop your credit score because it may look like you are struggling financially or desperate for credit.

Examples of hard hits include:

• Credit card applications

• Mortgage applications

• Other loan applications (e.g., student loans, personal loans, car loans)

• Credit limit increases

• Apartment rental applications

Not all credit checks affect your score, thankfully. Things like checking your own credit report or score or having your report checked by a company to see if you qualify for preapproval offers are called “soft hits” and do not harm your credit score.

Examples of soft hits include:

• Requesting your own credit report

• Businesses checking your credit report to update their records for an existing account

• A business checking your credit to see if you qualify for preapproval offers (e.g., insurance quotes, some credit card offers)

• Background checks from potential employers

You can avoid unnecessary hard hits on your credit score by only applying for credit or loans when necessary. Another way to avoid this is to have all potential lenders check your score within a two-week period, so it only counts as one hard hit. So, for example, if you’re looking for an apartment to rent and submitting several applications, try to do it within that two-week period so that all of the credit checks you receive for each application only count as one hard hit.

Diversify your credit portfolio

As you begin to rebuild your credit score, start to branch out to different types of credit instead of just a credit card. Having different types of credit can help improve your credit history.

Different types of credit include:

• Credit cards

• Car loan

• Personal loan

• Line of credit

• Mortgage

Credit diversity makes up 10% of your credit score. It’s not the biggest factor, but having different types of credit can help boost your score.

Keep old accounts open

Age brings wisdom, and this applies to your credit accounts too. After you’ve paid off your credit accounts, don’t close or cancel them. Keeping older accounts, even if you don’t use them, helps improve your credit history. A longer credit history can make you look more reliable to lenders and may give you a higher credit limit to use in the future.

How to use a credit card to build credit in Canada

It’s relatively easy to build your credit history using a credit card. All you have to do is make sure you use the card regularly and pay off the full balance each month. To begin, you need to either get approved for a credit card or apply for one with guaranteed approval.

1. Start by researching your options

You can apply for a card through your current bank or look for other cards that offer good interest rates and rewards. Look for cards with low fees and low or zero introductory interest rates, but be aware of when the introductory period ends and the interest rate increases.

2. Use the card often

Once you’re approved, start using the card and paying off the balance. Make small, frequent purchases and don’t spend more than you have in your checking account. Pay attention to cashback offers, as some cards offer more rewards for things like travel, gas, and food.

3. Pay your bill on time every time

Make sure to pay your credit card bill on time every month to build a positive credit history. Try to pay at least the minimum amount each month, but paying more will reduce your debt faster and save on interest. Don’t forget to keep your credit utilization rate at or below 30%. For example, if your credit limit is $1,000, keep your balance at $300 or less.

How to establish credit in Canada without a credit card

A credit card isn’t the only way to build credit in Canada.

1. Keep on top of your loan payments

Making sure your mortgage payment, car loan, student loan, and personal loan are paid on time is just as important to lenders. Remember, if you miss a payment or pay it late, your lender will report it to the credit bureaus, which can significantly affect your credit score.

2. Apply for a small personal loan

If you don’t have any loans, consider applying for a smallpersonal loan to help build credit that you can easily pay off. If you can’t get a traditional loan, you might try a secured loan, which requires collateral and is less risky for the lender. Car loans and home mortgages are examples of secured loans.

3. Apply for a guarantor loan

If you can’t get a regular personal loan, you can try a guarantor loan. This is especially helpful for newcomers to Canada and students who haven’t built their credit yet.

A guarantor or co-signer agrees to take responsibility for the loan if you can’t pay it back. This reduces the risk for the lender and can help you get approved. A guarantor can also help you qualify for larger loans, lower interest rates, and better terms.

4. Apply for a credit builder loan

Credit-builder loans are another option for building credit. These are usually available through credit unions or community banks and are designed to help people build their credit history. They often have easier approval requirements.

With a credit-builder loan, the money you borrow is put into a bank account by the lender while you make monthly payments. At the end of the loan term, you get the money. If you choose this option, make sure your bank or credit union reports your on-time payments to the three major credit bureaus.

5. Have your rent payments reported

Homeowners with a mortgage benefit from having it on their credit reports because it adds to their payment history, which is a major factor in credit scores. Similarly, reporting your rent payments can help build your credit. If you rent a house or apartment, consider having your rent payments reported to credit bureaus. One way to do this in Canada is through The Landlord Credit Bureau (LCB), a rent payment reporting agency. Both you and your landlord must join the LCB to report rent payments to Equifax.

KOHO’s secured credit building

Another option to build your credit up, instead of using a credit card, is to try one of KOHO’s Credit Building programs.

KOHO Credit Building

KOHO’sCredit Building program is a credit-building tradeline. A tradeline is an account that appears on your credit report.

When you sign up, you’ll get a special tradeline just for building credit, with no fees or interest. Each month, you make payments on this tradeline. By making payments on time each month, you’ll gradually establish a positive credit history, which will, in turn, improve your credit score.

Here’s how it works:

1. Once you sign up, you’ll get a $225 tradeline with no fees or interest. This tradeline is separate from your available balance.

2. Your subscription renews automatically, so you won’t have any interruptions. Just make sure you have enough money in your account each month to cover the subscription fee and maybeoverdraft protection coverage in case you happen to forget one month.

3. Each month on your billing date, you’ll need to set your utilization rate in the app. We recommend keeping it at 10% or lower. (Remember to update your utilization rate every month because it resets to 0% on your billing date.)

4. We’ll take a part of these funds when you set your utilization rate and report this to Equifax. This process repeats every month as long as you stay subscribed. You can stay enrolled as long as you need.

KOHO Secured Credit Building

This option is a secured line of credit. You pay a $5 monthly service fee and set aside $30 to $500 in your KOHO account as security. Once the line of credit is set up, you can use it to make purchases. At the end of each billing cycle, you repay what you used, and this payment is reported to a credit bureau, helping build your credit history.

Here’s how it works:

1. Deposit $30-$500 into your account to set up a secured line of credit.

2. Transfer these funds to your KOHO account for spending (try to stay within 10% of your deposit).

3. On your billing date, we’ll automatically move the funds from your KOHO account back into your secured line of credit (make sure the funds are available in your Spendable).

Why it’s important to monitor your credit health

Both your credit report and credit score are key parts of your financial life. It’s important to know how they are created and to keep them in good shape. Good credit habits can help you get approved for things like mortgages and car loans and save money with lower interest rates.

A bad credit history can impact you for a long time. In Canada, late or missed payments and other negative information can stay on your credit report for seven years. To build a positive credit history, pay your debts on time and keep your credit utilization low, ideally below 30%. Keeping paid-off credit cards open can also boost your credit scores because a longer credit history is beneficial.

There are several reasons why monitoring your credit health is crucial.

1. Qualifying for loans and credit cards

First, your credit score affects your ability to get loans and credit cards. Lenders use your score to decide if you are a reliable borrower. A higher score can help you get bigger loans, better credit card rewards, and lower interest rates, saving you money over time.

2. Qualifying for rentals or jobs

Second, your credit report can affect other areas of your life beyond borrowing money. Landlords often check credit reports when deciding whether to rent to someone. A good credit history can make it easier to get a rental property. Some employers also check credit reports when hiring, especially for jobs involving money or sensitive information. A good credit history can improve your job prospects and open up more career opportunities.

3. Quickly spotting errors or fraud

Regularly checking your credit health can also help you spot and fix errors or fraudulent activities on your credit report. Reviewing your credit report allows you to catch mistakes, like incorrect personal information or accounts you didn’t open. Fixing these issues quickly can prevent damage to your credit score and protect you from identity theft.

4. Peace of mind

Keeping your credit in good shape also gives you peace of mind. Knowing your financial profile is healthy reduces stress and gives you confidence in managing your finances. It helps you plan for the future, whether you’re buying a home, starting a business, or ensuring financial stability.

How to use credit wisely

If you’re new to building credit or looking to establish better financial habits, our team at KOHO has some helpful tips to help you manage your credit effectively and avoid accumulating too much debt or paying high-interest charges. Here are some ways to help youbuild credit without debt:

1. Always pay on time

Always make your payment on or before the due date on your credit card statement. Remember, late or missed payments can hurt your credit score because they can stay on your credit report for up to seven years. They can also lead to late fees and higher interest rates.

To avoid missing payments, you could set up automatic payments or electronic reminders.

2. Only spend what you can afford

Only use credit for things you can afford. Keep your purchases within your budget so you can pay off your bill every month.

3. Pay more than the minimum

If possible, pay off your credit card balance in full each month. If you can’t, at least make the minimum payment by the due date to avoid late fees and interest charges. Making the minimum payment will also keep your account in good standing. But remember that only making the minimum payment won’t help you pay down your balance, and you’ll be charged interest on that balance, so always try to pay more if you can.

4. Avoid cash advances (except in emergencies)

Only use your credit card for cash advances in emergencies. Unlike regular monthly interest, which typically offers a 21-day grace period, interest on cash advances starts immediately and can be costly.

5. Pay off higher interest credit first

If you do have debt, and one of your debts has higher interest than the rest, consider using the avalanche method to pay it off first. For example, if you have debt on a credit card and a line of credit, make minimum payments on both and put any extra money towards the credit card to save on interest. This will help you save more money in the long run.

6. Report a lost or stolen card immediately

Report your card lost or stolen if you can’t find it or think someone stole your account number. Your lender will deactivate your old card and account number so no one else can use it.

If you think you’re a victim of credit card fraud and see purchases you didn’t make, tell your card issuer right away. The sooner you report it, the quicker you can stop unauthorized spending.

Many card issuers offer fraud protection, so you won’t be responsible for charges you didn’t authorize. If you lose your card or think it’s stolen, you may also be able to lock your card through your online account to prevent it from being used until you find it.

7. Always check your monthly statement

Keep your receipts and compare them to your monthly statement to ensure accuracy. Regularly checking your credit card statements helps you stay aware of your spending and can help you spot any transactions you don’t recognize, protecting you from fraud.

Many credit card apps let you set up instant purchase notifications. This means you’ll get an alert when a transaction over a certain amount occurs. Consider turning this feature on to keep a closer eye on your account.

8. Simplify payments

Using fewer cards makes it easier to track your spending and manage your debt. If you do have multiple credit cards, you can consolidate your debt into one payment, sometimes with lower interest. One way to do this is through a balance transfer, which lets you move the balance you owe on one or more cards to a new card. A balance transfer can help lower your monthly interest payments and make it easier to track your spending.

9. Consider your credit limits

Using credit responsibly, like paying on time each month, keeps your credit account in good standing. Sometimes, this can lead your card issuer to offer you a higher credit limit. You don’t have to accept a credit limit increase, but it’s worth considering. A higher limit increases your total available credit, which can help you keep your credit utilization lower, and that is good for your credit score.

However, if you feel you’re not great at handling your credit limits yet, you may want to wait to accept a high credit limit. The last thing you want when trying to pay down your debt is to be tempted to spend even more money because you have more credit available to you.

10. Take advantage of your credit card rewards

If you have a rewards credit card, such as a cashback or travel card, consider how to maximize its benefits. There are many credit cards available that offer rewards.

Take theKOHO Essential plan, for example. Essentials gives you 1% cash back on groceries, transportation and dining, and all the money you load onto your card earns you 5% interest. You can also earn up to 5% extra cashback at selected merchants.

With KOHO Essential, you can get:

• No annual fee

• Cashback on eligible purchases

• Earn interest on your entire balance

• Instant e-transfers

• Unlimited transactions

• Free credit score checks

Now, while it doesn’t normally build credit, being a prepaid card, you can subscribe to KOHO’s Credit Building option for $10 a month, and your credit history will be reported to Canada’s credit bureaus.

For more benefits, you can subscribe to ourKOHO Extra plan for $9 a month. You’ll get 1.5% cash back on groceries, transportation and dining, and 0.25% cash back on all other purchases. Plus, you’ll still earn 5% interest on your entire balance, up to 5% extra cashback at selected merchants, and the credit building option is only $7.

And with theKOHO Everything plan for $19, you can earn even more benefits, including 2% cash back on groceries, transportation and dining. Plus, our credit building option is only $5 per month.

Start building your credit with KOHO today!

Building a strong credit profile isn’t just about having a credit card; it’s about using the right strategies for long-term financial health, improving your credit history, boosting your credit score, and increasing your available credit limit.

For those who want to improve their credit without taking on debt, KOHO’s innovative credit-building program and credit account options offer a great alternative to traditional cards.

Imagine saving money on a loan just because you have a good credit score! KOHO’s credit-building program offers two main options:

1. Credit Building: Use a KOHO line of credit to start improving your credit and add positive payment records to your credit report.

2. Flexible Credit Building: Choose a secured line of credit for a more customized approach to boost your credit scores and improve your credit report.

KOHO’s program is easy and accessible. There are no upfront deposits, no detailed credit checks, and no complicated applications. With guaranteed approval, it’s simple for Canadians to start improving their credit. This program focuses on building credit without getting into debt.

And that’s not all. KOHO also offersplans for spending and saving,high-interest saving accounts for all, and even great options to help yougrow your business.

So don’t wait! Startbuilding your credit with KOHO today!

FAQs for how to build credit

How do I build my credit for the first time?

Start by getting a credit card or a small loan. Use it regularly and always pay your bills on time. Keeping your credit card balance low helps, too. Consider using credit-building programs like KOHO.

What is the fastest way to build bad credit?

To fix bad credit quickly, pay all your bills on time and reduce any outstanding debt. Keep your credit card balances low and avoid applying for new credit too often. You might also use credit-building programs to help improve your score.

How to get a 900 credit score in Canada?

To aim for a 900 credit score, always pay your bills on time, keep your credit card balances low, and maintain a long credit history. Also, avoid opening too many new credit accounts. Regularly check your credit report for mistakes and fix any errors quickly.

How long does it take to build credit to 700?

Building a credit score of 700 can take several months to a few years. It depends on your starting point and how consistently you pay your bills on time, keep your debt low, and manage your credit responsibly.

Why is good credit important?

Good credit helps you get loans and credit cards with lower interest rates, saving you money. It can also make it easier to rent a home, get a job, and access other financial opportunities.

What is a good credit score in Canada?

A good credit score in Canada is usually 700 or higher.

Does paying rent build credit?

Paying rent can build credit if your landlord reports your payments to the credit bureaus. One way to do this in Canada is through The Landlord Credit Bureau (LCB), a rent payment reporting agency. Both you and your landlord must join the LCB to report rent payments to Equifax.