Credit Score in Canada for Newcomers: How It Works and How to Build It
In this guide
Quick answer: In Canada, credit scores usually range from 300 to 900, and a higher score is better. Your score is built from Canadian credit activity, so newcomers often start with no history even if they had excellent credit at home. According to Canada’s Financial Consumer Agency (FCAC), the most important factor is paying every bill on time, followed by using less than 30% of your total credit limit.
Many newcomers are surprised to learn that a strong financial record from another country does not automatically follow them. Credit bureaus in Canada only collect information about credit activity in Canada. This guide explains how the system works and what actually builds a score, using the Government of Canada’s consumer guidance. It is part of our first 90 days in a new country plan.
What is a credit score in Canada?
A credit score is a number that summarises how reliably you have handled credit. It is based on the information in your credit report. Scores usually range from 300 to 900. Lenders use the score and the report to decide whether to approve you and on what terms.
Which credit bureaus operate in Canada?
Canada has two main credit bureaus, Equifax and TransUnion. They only collect information about credit activity in Canada, and they update your report at least once a month.
What affects your credit score?
The FCAC groups the factors into two areas.
| Area | What counts |
|---|---|
| Credit history | How long you have had credit, how long each account has been on your report, the types of credit you use, accounts sent to collections, and any insolvency or bankruptcy |
| Credit habits | Carrying a balance on cards, missed payments, how much you owe, how close you are to your limit, and how often you apply for new credit |
How can a newcomer build credit in Canada?
- Pay on time, every time. The FCAC calls payment history the most important part of your credit score. If you cannot pay in full, make at least the minimum payment, and contact your lender early if you expect trouble.
- Keep your balances low. The FCAC advises using less than 30% of your total credit limit. For example, using $1,000 of a $5,000 limit is 20%. Keep the balance low even if you pay it off each month.
- Be selective when applying. Apply only when you need credit, and avoid several applications close together.
- Keep older accounts open. Older accounts help your score. If an account has no annual fee and you can use it occasionally, keep it open.
- Use different types of credit responsibly. A mix such as a credit card, car loan or line of credit can help, but only borrow what you can repay.
You need a bank account to get started, and our guide to opening a bank account in Canada as a newcomer covers the ID you will need. A Social Insurance Number is also commonly needed for work, covered in how to get a SIN in Canada. Moving between countries? Compare how the systems work in the US and the UK.
Will your foreign credit history count?
Not in the bureaus. However, the FCAC notes that some lenders may review credit history from another country, saying you may need to provide your credit report from another country. You may also need to meet with a bank officer. Ask each lender what it accepts, and request your home-country credit report before you leave if that is possible.
How do you check your credit report for free?
You can get your report free through the official channels of both bureaus.
- Online: Equifax’s free credit report page or TransUnion’s Consumer Disclosure page. You can download or print the report.
- By mail: Fill out the bureau’s request form and mail it with photocopies of two valid pieces of ID.
- By phone: Equifax 1-800-465-7166 or TransUnion 1-800-663-9980, then answer identity questions.
- In person: In some provinces and territories, at an Equifax or TransUnion office, with at least two valid pieces of ID.
Checking your own report or score does not affect your score. Other companies may charge for reports, so check before paying anything.
Common mistakes newcomers make
- Assuming a foreign credit record transfers automatically.
- Using most of the credit limit each month, which can hurt your score.
- Opening several credit products in a short time.
- Missing even one payment because of a new billing date; set up reminders or automatic payments.
- Paying a third party for a report you can get free.
FAQ
What is a good credit score in Canada?
Scores usually range from 300 to 900, and higher is better. Lenders set their own cutoffs, so ask the lender what it requires.
How often is my credit report updated?
At least once a month.
Does checking my own report lower my score?
No. The FCAC says checking your own report or score does not affect your score.
Can I use my credit history from my home country?
Not in the Canadian bureaus, but some lenders may ask for your foreign credit report. Ask each lender what it accepts.
Key takeaways
- Canadian credit scores usually run from 300 to 900, and only Canadian activity is counted.
- Pay on time and keep utilisation under 30%.
- Check your Equifax and TransUnion reports for free.
- Apply for credit only when you need it.
Related guides
- Your first 90 days in a new country
- How to open a Canadian bank account as a newcomer
- How to get a SIN in Canada
- How to build credit in the USA as a new immigrant
- How to build a UK credit history
This article is general information, not financial advice. Check current rules with the lender and the FCAC. Last updated: October 2026.
Sources
- Financial Consumer Agency of Canada: Credit reports and scores basics
- Financial Consumer Agency of Canada: Improve your credit score
- Financial Consumer Agency of Canada: Order your credit report