Building & Improving Credit

Build a strong credit history one step at a time.

Good credit takes timeSmall, steady habits can make a real difference.
Why it matters

Why Building Credit Matters

Good credit can make it easier to rent a home, get a cell phone plan, qualify for a car loan or secure a mortgage. Whether you are new to Canada or rebuilding after a hard time, you can improve your credit with steady habits.

Newcomer tip

New to Canada?

Credit history from another country usually does not transfer automatically. Start early with a Canadian bank account and ask your bank about credit options for newcomers.

What you can do

Six ways to build your credit

Pay on time

Your payment history is one of the biggest factors in your credit score. Set up reminders or automatic payments so you never miss a due date.

Keep your balances low

Try to use less than 30% of your credit limit. For example, on a $1,000 limit, aim to keep your balance below $300.

Start with a secured credit card

If you are new to credit, a secured card can help you build a history. You give a refundable deposit, and the card works like a regular credit card.

Be careful with new applications

Applying for a lot of credit in a short time can lower your score. Only apply for what you need.

Keep older accounts open

A longer credit history can help your score, so think carefully before closing your oldest account.

Check your credit report

Review your reports from Equifax Canada and TransUnion Canada. If you find a mistake, ask the credit bureau to correct it.

Questions? We’re here to help.

This page offers general information. Contact us to learn more about our financial empowerment programs.

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