Credit History: What It Is and How to Build It
Your credit history is a record of how you've borrowed and repaid money over time — and it directly affects what loans you can get approved for, and at what interest rate.
The Two Credit Bureaus in Canada
Unlike some countries with a single credit bureau, Canada has two main ones — Equifax Canada and TransUnion Canada — and they don't always have identical information, since not every lender reports to both. Your credit score from each typically ranges from 300 to 900, with higher scores indicating lower perceived risk to lenders.
What Actually Affects Your Score
Payment history (paying on time) and credit utilization (how much of your available credit you're using) are the two biggest factors. Length of credit history, the mix of credit types you use, and how often you apply for new credit also matter, but to a lesser degree — a single missed payment or maxed-out card typically hurts more than any of these secondary factors.
Checking Your Own Credit Report for Free
You can request your credit report for free directly from both Equifax Canada and TransUnion Canada — checking your own report doesn't affect your score, unlike when a lender pulls it to evaluate a loan application (a 'hard inquiry'). Reviewing it regularly also helps you catch errors or signs of identity theft early.
Frequently Asked Questions
- How many credit bureaus are there in Canada?
- Two — Equifax Canada and TransUnion Canada. They don't always have identical information, since not every lender reports to both bureaus.
- What credit score range is used in Canada?
- Typically 300 to 900, with higher scores indicating lower perceived risk to lenders.
- What has the biggest impact on my credit score?
- Payment history (paying on time) and credit utilization (how much of your available credit you're using) — these two factors matter more than most others combined.
- Does checking my own credit report hurt my score?
- No. Checking your own report is a 'soft inquiry' and doesn't affect your score, unlike a lender's 'hard inquiry' when you apply for credit.
Informational content, not financial, tax, or legal advice. Verify amounts, limits, and current conditions directly with official sources (CRA, CDIC, OSFI) before making a decision.
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