Your credit score influences whether you qualify, which lenders will consider you and the rate you are offered. Starting three to six months before you apply gives you time to make changes that matter.
What makes up your credit score
| Factor | Rough weight | What helps |
|---|---|---|
| Payment history | Largest | Pay on time, every time |
| Credit utilization | Large | Keep balances under about 30% of limits, lower is better |
| Length of credit history | Moderate | Keep older accounts open |
| New credit and inquiries | Smaller | Avoid opening several accounts at once |
| Types of credit | Smaller | A healthy mix of cards and loans |
Exact weights differ between scoring models, so treat these as general guidance.
A 90-day plan
- Get your reports. Request free reports from Equifax Canada and TransUnion Canada and review every line.
- Dispute errors. Wrong balances, accounts that are not yours and outdated items can drag your score down.
- Lower your balances. Pay down cards, and consider paying before the statement date so a lower balance is reported.
- Set up automatic payments for at least the minimums so you never miss one.
- Pause new applications for cards, loans or store credit until after your mortgage closes.
Things to avoid before applying
- Financing a car, furniture or other large purchases
- Co-signing loans for others
- Closing old accounts with good history
- Maxing out cards, even if you plan to pay them off
- Changing jobs or income sources without talking to your broker
Frequently asked questions
How long does it take to raise a credit score?
Small improvements can show up in one to three months, especially from paying down balances. Recovering from serious problems takes longer.
Does checking my own credit lower my score?
No. Checking your own credit is a soft inquiry and does not affect your score.
What credit score is considered good in Canada?
Scores generally range from 300 to 900. Scores in the 660s and above are often considered good, and 725 and above very good, but lenders set their own requirements.
Related: Getting a mortgage with bad credit and pre-approval in Ottawa.
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