How to Improve Your Credit Score in Canada (Fast & For Good)

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✍️ Written & fact-checked by the LoanWave Editorial Team · Last reviewed October 8, 2026 · Sources: Bank of Canada, FCAC, OSB, Equifax Canada

Your credit score affects whether you’re approved for loans and how much interest you’ll pay. In Canada, scores from Equifax and TransUnion range from 300 to 900. The higher your score, the better your options. Here’s how to raise yours.

📘 This article is part of our complete guide to personal loans in canada.

What makes up your score

Exact formulas aren’t public, but the main factors are:

• Payment history — paying on time
• Credit utilization — how much of your available credit you use
• Length of credit history
• Mix of credit — cards, loans, lines of credit
• New credit inquiries

9 ways to improve your credit score

1. Pay every bill on time. Set up automatic payments for at least the minimum.
2. Keep utilization below 30% of each card’s limit — under 10% is even better.
3. Check your credit report from both Equifax and TransUnion and dispute errors.
4. Don’t close old accounts unnecessarily; they lengthen your history.
5. Limit hard inquiries — compare loans with soft checks first.
6. Use a secured credit card if you have no or poor credit.
7. Ask for a credit limit increase (without spending more) to lower utilization.
8. Deal with collections — contact the agency to arrange payment.
9. Add an instalment loan responsibly; a mix of credit can help over time.

Rebuilding after a consumer proposal or bankruptcy

Start with a secured card or small instalment loan, make every payment on time, and keep balances low. Many Canadians rebuild to fair or good credit faster than they expect.

Why it matters

A better score can mean lower rates on personal loans, car loans and mortgages — potentially saving thousands over your lifetime.

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Sources & methodology

This guide was researched and fact-checked by the LoanWave editorial team against Canadian government sources, federal law and national credit bureau data. Figures are the latest published at the time of review; lender rates and terms change often, so always confirm the final cost in your loan agreement. Example calculations use standard amortization formulas and are for illustration only. LoanWave earns referral commissions, but partners do not review or approve our editorial content.

1. Financial Consumer Agency of Canada — Personal loans
2. Financial Consumer Agency of Canada — Credit reports and scores
3. Cassels — Changes to Canada's criminal rate of interest (35% APR, Jan 1, 2025)
4. Bank of Canada — Interest rate announcement, September 2, 2026
5. Wealth Professional — Canada's consumer debt hits $2.68 trillion in Q2 2026 (Equifax data)

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