How to Fix Bad Credit and Get a Good Credit Score

Improving Credit in Canada

A good credit score serves as a testament to your financial health and can significantly influence your ability to secure favorable financial services and interest rates. However, for many Canadians, achieving a high credit score might seem like an uphill battle. This article is here to reassure you that it’s entirely possible.

Understanding Credit Scores

A credit score is a numerical representation of your creditworthiness, determined by a range of factors that credit bureaus consider. A credit bureau collects data from multiple sources, including banks, credit card companies, and collection agencies, and then passes this information onto lending organizations when a credit request is made.

The higher your credit score, the more attractive you are to potential lenders. This often means better loan terms and lower interest rates. However, maintaining a high credit score requires consistent effort and financial discipline.

Factors that Affect Your Credit Score

There are several factors that can negatively impact your credit score:


Delayed Bill Payments: Frequently missing bill payment deadlines or having your account sent to collections can severely damage your credit score.

High Credit Utilization Rate: If you’re frequently reaching or exceeding your credit limit, this can negatively affect your credit score.

Lack of Credit History: If you’re new to the world of credit, there may not be enough information available to accurately determine your creditworthiness.

Numerous Hard Inquiries: When you apply for a loan or a new credit card, the lender checks your credit report. Too many hard inquiries over a short period can lower your credit score.


Rebuilding Your Credit Score

It’s important to understand that ‘fixing’ your credit score is more about rebuilding your credit and improving your score over time. If the information in your credit report is accurate, it cannot be changed or removed. However, you can create a positive credit history by making regular, timely payments and reducing your outstanding debts.

An individual with a credit score below 660 might be tempted to look for quick fixes, but beware of credit repair scams that offer to remove negative information from your credit report instantly – this is impossible. Building a good credit score takes time, but the benefits are worth the effort.

Time Required to Rebuild Credit

The time required to rebuild your credit score can vary greatly depending on your unique credit profile. Certain activities, like missing a payment or having your account sent to collections, can have a more significant impact on your credit score.

In the case of bankruptcy, it can take several years to rebuild your credit score. However, with consistent on-time payments, you can start to see improvements. In most provinces, bankruptcy no longer appears on your credit report after 6 years from the date of discharge.

Steps to Improve Your Credit Score in Canada

Here are some strategies to help improve your credit score:

Regularly Check Your Credit Report

Ensure that all information on your credit report is accurate. If you spot errors, contact the relevant parties to have them corrected.

Build a Positive Credit History

Consider using a secured credit card to help build your credit history. A secured credit card is backed by a deposit and can help you demonstrate financial responsibility.

Prioritize Your Payments

Aim to make consistent on-time payments. If you’re struggling to meet your minimum monthly payments, avoid increasing your debt and focus on reducing your balances.

Seek Professional Help

Reach out to a not-for-profit credit counselling agency in Canada for tailored advice and information on how to rebuild your credit score.

While there’s no quick fix to improving your credit score, these steps will set you on the right path towards building a positive credit history and eventually achieving a good credit score. Remember, the journey might be long, but the benefits you’ll reap are worth the effort.


The process of fixing bad credit and achieving a good credit score in Canada can be a complex and lengthy process. However, with the right approach and a commitment to consistent and responsible credit use, it is an achievable goal. Remember, the key to a good credit score is patience, discipline, and a solid understanding of how credit works.

If you’re struggling with your credit score, don’t hesitate to seek help and advice from reputable sources. Whether it’s creating a budget, managing debts, or understanding your credit report, there are resources and professionals available to guide you on your journey to financial health.

Remember, a good credit score is within your reach. It just takes time, effort, and a bit of financial savvy to get there. Start your journey today and reap the benefits of a good credit score in Canada.

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