# Credit Scores in Canada: How to Build and Improve Yours > How credit scores work in Canada: the 300 to 900 range, Equifax and TransUnion, what moves your score, building credit from scratch and fixing errors. Source: https://trykosh.com/learn/credit-score-canada Guide - Saving and spending # How credit scores work in Canada, and how to build yours Your credit score affects whether you get a mortgage, a car loan, an apartment and sometimes a phone plan, and at what rate. It's built from a handful of habits you control. Here's how it works and how to raise it. Updated October 31, 20264 min readBy the Kosh team On this page[What is a credit score in Canada?](#what)[What affects your credit score?](#factors)[How to build credit from scratch](#build)[How to improve a low credit score](#improve)[How do I check my credit report for free?](#check)[How to fix an error on your credit report](#errors)[FAQs](#faq) ## What is a credit score in Canada? A credit score is a three-digit number lenders use to estimate how likely you are to repay. In Canada, scores **usually range from 300 to 900**, and higher is better. They're calculated from your credit report, the record of your credit accounts and payments held by Canada's two main credit bureaus, **Equifax** and **TransUnion**. You don't have one single score. Each bureau has its own data, lenders may use different scoring models, and a lender may see a slightly different number from the one in your banking app. What matters is the trend and the habits behind it. ## What affects your credit score? FCAC groups the main factors into two buckets: - **Your credit history:** how long you've used credit, how old your accounts are, the types of credit you hold, any debts sent to collections, and any bankruptcy or consumer proposal. - **Your credit habits:** whether you pay on time, how much of your limits you use, how close you are to your limits, your total debt, and how often you apply for new credit. Checking your own credit report or score doesn't affect it. Lender checks when you apply for credit ("hard" inquiries) can, especially several in a short time. ## How to build credit from scratch If you're new to Canada or new to credit, you start with a thin file. The steps: 1. **Get one card and use it lightly.** A basic card from your bank, or a secured card backed by a deposit if you're refused. 2. **Pay in full, every month.** Set up an automatic payment for at least the minimum as a safety net, then pay the full statement balance. 3. **Keep balances low** relative to the limit when the statement closes. 4. **Keep your oldest account open** as long as it's not costing you fees you don't want. 5. **Add a second type of credit later**, if you genuinely need it. Don't borrow just to build a score. Newcomers can find more on setting up in the [newcomers' money checklist](/learn/newcomers-to-canada-money-checklist). ## How to improve a low credit score Habit What to do Late payments Automate at least the minimum on every account. Late payments are among the most damaging marks. High balances Pay down cards, or pay part of the balance before the statement date so less is reported. Many applications Space out new credit applications. Shop for a mortgage or car loan within a short window. Collections Deal with any account in collections and keep proof of payment. Errors Get your free reports from both bureaus and dispute anything wrong. Improvements take months, not days, because your report reflects history. Steady on-time payments and low balances are what move the number. ## How do I check my credit report for free? Both Equifax and TransUnion let you request your credit report directly, and many banks and apps show a score for free. Check both bureaus at least once a year, and before applying for a mortgage, because they don't always hold the same information. ## How to fix an error on your credit report If something is wrong, such as an account that isn't yours, a payment wrongly marked late, or a debt you've repaid, contact the bureau that shows the error and follow its dispute process, with copies of your statements as proof. Contact the lender too. Fix it with both bureaus if both show it. **Where Kosh fits** Kosh can't see your credit report, but it watches what drives it: it flags every card due date before it arrives and shows how much of your limits you're using each month from your statements. Paying on time and keeping balances low is most of the job. ## Frequently asked questions What is a good credit score in Canada? Scores usually range from 300 to 900 and higher is better. Each lender sets its own cut-offs, so focus on the habits that raise any score: paying on time, keeping balances low and applying for credit sparingly. Does checking my credit score lower it? No. Checking your own credit report or score doesn't affect it. Hard inquiries made by lenders when you apply for credit can. What are the credit bureaus in Canada? The two main credit bureaus are Equifax and TransUnion. Each keeps its own credit report on you, so check both. How can a newcomer build credit in Canada? Open a basic or secured credit card, use it for small regular purchases, pay the full balance on time every month and keep the balance low relative to the limit. Your Canadian history builds from there. How long does it take to improve a credit score? Usually several months of on-time payments and lower balances before you see a clear change, longer after serious problems like collections. ## Sources - [FCAC: Credit report and score basics](https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/credit-report-score-basics.html) - [FCAC: How credit cards work](https://www.canada.ca/en/financial-consumer-agency/services/credit-cards/credit-card-work.html) Written by the Kosh team and checked against the rules in force on October 31, 2026. This guide is general information, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not registered with any Canadian securities regulator as an adviser or dealer, does not recommend specific securities, and does not hold your money or execute trades. Tax figures are estimates; confirm with the CRA or a qualified professional before acting. Investing carries risk. ## Upload your statement and Kosh does this for you. Kosh reads your bank, card and investment statements, estimates your federal and provincial tax and turns guides like this one into your own numbers and next steps. [Start free](/signup?via=learn-credit-score-canada)