How to Improve Your Credit Score in Canada (2025 Guide)
Your credit score is more than just a number—it’s your financial reputation. Whether you’re applying for a mortgage, a business loan, or even a new credit card, lenders look at your credit score to assess how risky it is to lend to you. In Canada, improving your credit score can open doors to better interest rates, higher credit limits, and easier loan approvals.
Here’s a complete guide to understanding and improving your credit score in 2025.
What Is a Credit Score?
In Canada, your credit score is a three-digit number that typically ranges from 300 to 900. It’s calculated by credit bureaus like Equifax and TransUnion, based on your credit behavior.
- Excellent: 760–900
- Good: 725–759
- Fair: 660–724
- Poor: 300–659
Why Your Credit Score Matters
A good credit score can help you:
- Qualify for loans or mortgages more easily
- Receive lower interest rates
- Access higher credit limits
Improve your chances of approval for rental applications and utility accounts
Key Factors That Affect Your Credit Score
Payment History (35%)
Always pay bills, loans, and credit cards on time. Missed or late payments seriously damage your score.Credit Utilization (30%)
Try to use less than 30% of your available credit. If your limit is $10,000, keep balances under $3,000.Credit History Length (15%)
The longer you’ve held accounts in good standing, the better.Credit Mix (10%)
A mix of credit types—like credit cards, car loans, or lines of credit—helps demonstrate responsible usage.Hard Inquiries (10%)
Too many credit checks in a short time can lower your score. These are typically triggered by loan or credit card applications.
Steps to Improve Your Credit Score
1. Check Your Credit Report Regularly
Request your free credit report from Equifax and TransUnion. Check for errors or fraudulent activity.
2. Make Payments On Time
Even one missed payment can hurt your score. Set up automatic payments or calendar reminders.
3. Pay Down High Balances
Focus on reducing credit card debt. High utilization makes you look financially overextended.
4. Increase Your Credit Limit (But Don’t Use It)
Ask for a limit increase on existing cards. It lowers your utilization percentage, improving your score.
5. Keep Old Accounts Open
Don’t close old credit cards—even if you’re not using them. They help maintain your credit history length.
6. Limit New Credit Applications
Apply only when necessary. Too many “hard pulls” within a short time can signal financial distress.
7. Use Credit-Building Tools
Consider a secured credit card, credit builder loan, or services like Borrowell and KOHO Credit Building to establish or rebuild credit.
Tools to Monitor and Build Your Credit
- Borrowell – Free Equifax credit score & tips
- Credit Karma – Free TransUnion reports
- KOHO Credit Building – $10/month subscription to improve payment history
- Secured Cards – Like from Home Trust, Capital One, or Neo Financial
Get Started Today
Your credit score doesn’t define you—but it does reflect your financial habits. With a little planning and the right guidance, you can steadily improve your score and unlock better financial options in 2025 and beyond.
📞 Contact Assentt today for personalized credit coaching and support with loan readiness.
The information provided is for educational/entertainment purposes only. Actual information may vary, please consult our office for further details. Got a question? Feel free to reach us at helpdesk@assentt.com.
