How to Improve Your Credit Score in Canada

Your Credit Score may be affected by multiple reasons: a late payment, an unpaid debt, multiple inquiries on your financial status and so. Keeping it healthy is as important as thinking about your future because, unless you have tons of cash under your bed, you will have to deal with banks and financial institutions. And as there are rare chances that you are on the cash case, it is important that you know how to improve your Credit Score in Canada.

Doing Everything Right is the "Default" Correct Way

We teach our kids how things should be done right every day. If the teacher says "you have to solve 5 maths problems", then that is your "Right Thing to Do". If you fail or don't have the capacity to do it yet, that is a secondary fact, but the primary one is that you were requested to do something that was originally conceived for, let's say, kids, learn to think mathematically. That is the right thing to do.

In the financial world, while it may sound more for "banking people", we are all involved regularly in a series of things to do that have a financial implication. For example: "Your IPS (Internet Service Provider) agrees to provide you a service based on your agreement to pay regularly for it." If somehow either them or you, break your promise, the rest of the society has an "ethical" right to know how likely both of you are to break a financial agreement. 

But let's focus on us, the individuals.

If somehow we break our promise, let's say because we had a single late payment, then all these institutions (cable, mobile, banks, credit card providers...) are aware of it because the affected one will report it onto your Credit Report, affecting your score and leaving a trace of what specifically happened. 

Obviously, one late payment isn't as bad as multiple late payments, this is why all this set of events get registered on what is known as your Credit Report & Credit Score. 

Your Credit Report is an actual Report with all the details about your Credit History.

Your Credit Score is a number, on a scale from 350 to 850 that represents how likely are you to accomplish your financial responsibilities. The higher it is, the more responsible, serious and likely to accomplish "what you promise" you are.

The scale basically reads as follows:

  • 350 - 500 Poor Credit
  • 561 - 660 Fair Credit
  • 661 - 725 Good Credit
  • 726 - 760 Very Good Credit
  • 761 - 850 Excellent Credit

Your Spending Habits are Your Score

The higher you are on the scale, means the more responsible you are. You pay a rent/mortgage that you can afford, the same with your car, plus your lifestyle fits in your actual average income. This all reflects your daily spending habits.

Please, remember the following: the only way to increase your Credit Score relies on your financial habits. If you spent more than what you earn, there is no way you'll have a positive step on the scale. If that is the case, start exploring alternative ways: move, reduce, get a cheaper car and evaluate different ways to pay debts faster.

A "Reverse Loan" Could Help

Refresh Financial is a Canadian institution that specializes in offering a very interesting product known popularly as a "Reverse Loan". Basically, it is like a savings account where you get your payments back at the end, minus all applicable fees. You will be agreeing to save into an account. Refresh Financial reports every payment to Credit Bureaus and this will help you positively build up your Credit Score.

Explore Refresh Financial Programs

Are You New to Canada?

If you are an immigrant, you will be someone completely new to all Credit Bureaus. It doesn't matter if you had a fantastic Credit history in the U.S, in the U.K. or anywhere else. You will need to build a reputation here. One of the first and top alternatives is also taking another product from Refresh Financial: Refresh Financial secured credit card.

Refresh Financial: Credit Score Booster

Refresh Financial secured credit card stacks up as one of the best affordable alternatives for newcomers.

Track Your Credit and your Creditors Regularly

Although it is hard to make a mistake, the best thing you can do is to be aware of where you are once a while. Borrowell Canada offers a FREE Equifax Credit Score Check that will help you know where you are standing.

Check Your Equifax Credit Score Now for FREE

In the Meantime, Lease/Finance With CanadaDrives

You will need an auto. For sure, you'll have to drive to work, pick up your kids at school and enjoy life during weekends. Car Manufacturer incentives won't work pretty well for you as you will need to pay higher interest rates.

Alternatives like CanadaDrives will help you find different and affordable personalized programs that will make things more affordable and will help you make it work. CanadaDrives has both Finance and Lease specialized loan programs you can apply in a few minutes: Lease Loan Program & Finance Loan Program.

About the author

Jorge Diaz is a passionate car lover, winter driver & Software Engineer. For the last 10 years, he has built Online Solutions used by more than 5,000 companies across the globe. He founded LeaseCosts in 2016 with the purpose of simplifying and helping Canadians to better understand the complex market of car leasing in Canada. You can connect with him at

Jorge is also the author of Car Leasing Done Right: A Canadian Guide for Understanding & Optimizing Vehicle Leasing Costs, released on Nov. 5th, 2021. It is available at