Low Credit Score? Learn How to Improve Your Credit Score Today

If you’ve been told your credit score needs work, you’re not alone. Whether you’re applying for a mortgage, a car loan, or even trying to rent an apartment, your credit score can make or break your chances. In Canada, credit scores range from 300 to 900, and lenders often look for scores above 660 as a sign of good financial health.
The good news? Credit scores aren’t fixed in stone. With a little effort and smart habits, you can boost your score over time. Here’s exactly how to improve your credit score starting today.

What Is a Credit Score and Why Does It Matter?

Your credit score is a three-digit number that reflects how reliably you manage your debt. It’s calculated using your borrowing and repayment history, current debts, length of credit history, types of credit, and how often you apply for new credit.
Lenders use this score to decide whether to approve you for credit and what interest rate to offer. A higher score can mean better rates and easier approvals.

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5 Simple Ways to Improve Your Credit Score

1. Check Your Credit Report Regularly

Mistakes happen—and they can drag your score down unfairly. That’s why you should check your credit reports at least once a year. You can access them for free through Equifax or TransUnion, Canada’s main credit bureaus.
Look for errors like:

• Incorrect balances
• Accounts that don’t belong to you
• Late payments you know you made on time

2. Keep Your Credit Utilization Below 30%

Your credit utilization is the percentage of your available credit you’re using. If you have a card with a $10,000 limit and carry a $4,000 balance, your utilization is 40%.
Try to keep this number below 30% to show lenders you manage credit responsibly. That means in this example, aim to carry less than $3,000 at any given time.
Tip: Ask for a credit limit increase—as long as you don’t increase your spending, this will lower your utilization.

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3. Always Pay Your Bills on Time

Even one missed payment can hurt your score. That’s because payment history is the biggest factor in your credit score.
Make it a habit to:

• Set reminders for due dates
• Set up auto-pay for at least the minimum amount
• Contact lenders proactively if you’re going to be late

Remember, payments aren’t marked as “on time” until the creditor receives them—so pay 4–5 days early when possible.

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4. Reduce Existing Debt

Carrying large balances, especially on high-interest credit cards, can drag your score down.
Here’s what you can do:

• Focus on paying off high-interest debts first
• Consider a debt consolidation loan for easier payments
• Use windfalls (tax refunds, bonuses) to pay down debt

As your balances shrink, your utilization will improve—and so will your score.

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5. Minimize Hard Credit Inquiries

Every time you apply for a credit card or loan, it triggers a hard inquiry. Too many of these in a short time can signal financial trouble to lenders.
Apply for new credit only when necessary. If you’re shopping for a mortgage or car loan, try to make all applications within a 2-week window so they count as a single inquiry.
Note: Checking your own score is a soft inquiry and has no impact.

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Frequently Asked Questions

What’s a good credit score in Canada?
Scores from 660 to 724 are considered good. Anything above 725 is very good to excellent.
How often should I check my credit score?
At least once a year, or every few months if you’re planning a major loan. Frequent checks can help spot fraud or errors early.
Does checking my own credit hurt my score?
Nope! Checking your own credit is a soft inquiry and doesn’t affect your score.
Can I fix my score quickly?
While there’s no overnight fix, paying bills on time and reducing debt can improve your score in just a few months.

Low Credit Score? Let’s Fix That Together

Building or rebuilding your credit score isn’t complicated—but it does take consistency and time. Whether you’re eyeing a mortgage, a new car, or just want to feel more financially confident, improving your credit score is a smart move.
A low credit score doesn’t have to hold you back from getting approved. Learn proven strategies to build your credit — and connect with an expert who can help you qualify for better mortgage rates. 📈 Get Personalized Credit Improvement Tips