Canadians who are savvy about their finances want a good credit score. They know that having a high score grants them access to several different credit products, and often the lowest interest rates available. That begs the inevitable question: What is a good credit score in Canada?
Frequently asked questions
The general rule is to use your credit card at least once monthly. However, when you use your credit card, keep in mind that you do have to pay it down. In order to build credit, you need to use your card and then pay off the minimum amount. If you can pay more than the minimums, that will help improve your score.
One of the easiest ways to improve your credit score is to make your payments on time. If you can’t pay the full amount due, at least pay the minimum. If you absolutely must skip a payment, contact your credit card company. They may have relief programs in place. But, don’t make a habit of letting credit card payments fall to the wayside. The more you neglect your payments, the more your score will suffer.
Some landlords do not look at credit scores but at employment history instead. These landlords are like giant squids. We know they exist but it’s rare to see one out of the water. However, having a below average credit score with steady employment might not deter a landlord from renting to you.