5 Quick Ways You Can Improve Your Credit Score in Canada

Introduction: Struggling With a Low Credit Score? Here’s How to Fix It!

Your credit score plays a crucial role in your financial life, affecting everything from mortgage approvals to interest rates on loans. If you’re wondering, “How can I improve my credit score in Canada quickly?”, the good news is that small changes can make a big difference.

In this guide, we’ll walk you through five effective ways to boost your credit score fast and regain control of your financial future.

1. Pay Your Bills on Time – Every Time

Late or missed payments negatively impact your credit score. Your payment history accounts for 35% of your credit score, making it the most important factor.

Quick Tip: Set up automatic payments or reminders to ensure you never miss a due date.

Example: If you have a $500 credit card bill due on the 15th, set up an auto-payment for at least the minimum amount to avoid penalties.

2. Reduce Your Credit Utilization Below 30%

Credit utilization is the percentage of your available credit that you’re using. A high utilization rate signals risk to lenders and can lower your score.

Ideal Utilization: Keep your credit usage below 30% of your total credit limit. If your credit limit is $10,000, try not to use more than $3,000 at any given time.

Quick Fix: If your balance is too high, consider making multiple payments within a month to keep the balance low when reported to credit bureaus.

3. Don’t Apply for Too Much Credit at Once

Each time you apply for a new credit card or loan, lenders conduct a hard inquiry, which can temporarily reduce your score.

Best Practice: Only apply for credit when necessary. Too many applications in a short period can make lenders see you as a risk.

Alternative: If you need a new credit card, consider pre-approved offers, which don’t impact your credit score.

4. Keep Old Credit Accounts Open

The length of your credit history matters. Older accounts help strengthen your credit score by showing long-term, responsible credit usage.

What to Do: Keep your oldest credit card accounts open, even if you don’t use them often.

Example: If you opened a credit card five years ago, closing it will shorten your average credit age, which can hurt your score.

5. Check Your Credit Report and Dispute Errors

Mistakes on your credit report can drag down your score without you even realizing it.

How to Check: Get a free credit report from Equifax or TransUnion and review it for errors like incorrect late payments or fraudulent accounts.

How to Dispute: If you find a mistake, contact the credit bureau immediately to have it corrected.

Final Thoughts: Take Control of Your Credit Today

Improving your credit score doesn’t happen overnight, but following these steps can lead to noticeable improvements within months. Whether you’re planning to buy a home or just want better financial security, a higher credit score opens doors to better loan rates and financial opportunities.

Need personalized mortgage advice based on your credit situation?

Pradip Maheshvari Mortgages can help you secure the best mortgage options, no matter your credit score.

📞 Get in touch today!