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You do not start with a specific credit score in Canada.
When you have never used credit before, you generally have little or no credit history and may not have a credit score yet.
Once lenders begin reporting enough information about your accounts and payments, a credit score can be calculated.
KOHO Credit Builder
KOHO Credit Builder helps Canadians establish or improve their credit history through consistent monthly payments, without relying on a traditional credit card.
With KOHO Credit Builder, you can:
See an average credit score increase of 74 points*
Get approved without a hard credit check or minimum deposit
Pay no interest on the line of credit
Track your credit score and credit report directly in the KOHO app
Build credit history through monthly payments reported to the credit bureaus
Do You Start With a Credit Score of 300?
No.
Although Canadian credit scores generally range from 300 to 900, that does not mean everyone automatically starts at 300.
If you have never had a credit account reported to Equifax or TransUnion, you may simply have no score.
Once enough information is available, the credit scoring model calculates a score based on your actual credit history.
Do You Start With a Credit Score of 600?
No.
There is no standard starting score such as 600.
Two people opening their first credit accounts at the same time could eventually receive different scores depending on how they manage those accounts.
Your first score depends on the information reported about you rather than being assigned automatically.
How Long Does It Take to Get a Credit Score?
It can take several months after opening your first credit account before enough information exists to calculate a score.
The exact timing depends on:
When the lender reports your account
Which credit bureau receives the information
The scoring model being used
How much credit history is available
You should not expect a score to appear immediately after opening your first credit card or loan.
What Determines Your First Credit Score?
Your score can be influenced by several factors.
Payment history
Making payments on time helps establish a positive credit history.
Missed or late payments can negatively affect your score.
Credit utilization
Credit utilization measures how much of your available revolving credit you use.
For example, if your credit card has a $1,000 limit and you owe $200, your utilization is 20%.
Keeping balances relatively low can support a stronger credit profile.
Length of credit history
The longer your accounts remain open and in good standing, the more history lenders have to evaluate.
This is one reason building credit takes time.
Credit applications
Applying for several credit products within a short period can result in multiple hard inquiries.
Avoid opening several accounts simply to try to build credit faster.
Types of credit
Your credit profile can include revolving credit such as credit cards and installment debt such as loans.
You do not need several different types of debt just to establish a score.
What Is a Good Credit Score in Canada?
Canadian credit scores generally range from 300 to 900.
Higher scores generally indicate a stronger credit profile.
A score of 660 or above is often considered good, although lenders use their own approval criteria.
Your credit score is only one factor lenders consider.
They may also look at:
Income
Existing debt
Employment
Payment history
Overall ability to repay
How Can You Start Building Credit?
If you have no credit history, you can begin with a product that reports your payments to a Canadian credit bureau.
Options can include:
A secured credit card
A student credit card
A newcomer credit card
A credit-building product
Certain loans reported to the credit bureaus
Whichever option you choose, the most important step is making payments on time.
Do Prepaid Cards Build Credit?
Regular prepaid card spending generally does not build your credit history.
With a prepaid card, you are spending money you already have rather than borrowing from a lender.
If your goal is to establish credit, make sure the product specifically reports your activity to Equifax, TransUnion or both.
Do You Need to Carry a Balance to Build Credit?
No.
You do not need to carry a balance or pay credit card interest to build credit.
You can make purchases and pay your statement balance in full by the due date.
The important part is that the account is reported and managed responsibly.
How Can You Build a Strong Credit Score From the Beginning?
Start with simple habits:
Make every payment on time.
Keep credit card balances relatively low.
Avoid applying for too many accounts at once.
Keep older accounts open when they continue to make sense.
Check your credit reports for errors.
Only borrow amounts you can comfortably repay.
Building credit is usually a gradual process.
You do not start with a predetermined score. Your score develops based on how you manage credit once lenders begin reporting your account activity.
*Based on users with a starting score of 450 or under and who used all of our credit building tools (i.e. Credit Building, Secured Credit Building) for 12+ months with on time payments. Credit building tools we offer are not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on complex models involving a variety of factors. Consistent on-time payments help improve scores and missed or late payments may cause credit scores to decrease. Outcomes may vary among users.
About the author
Quan works as a Junior SEO Specialist, helping websites grow through organic search. He loves the world of finance and investing. When he’s not working, he stays active at the gym, trains Muay Thai, plays soccer, and goes swimming.
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