5 Simple Steps to Start Building Credit from Scratch

Starting with no credit history can feel intimidating — but building credit in Canada is easier than you think. Here are 5 proven steps to get started.

1. Open a Starter Credit Card

Look for a secured card or a student card. With a secured card, you deposit money (like $500) and use it as your limit. This helps you prove you can borrow and repay responsibly.

2. Make On-Time Payments (Every Time)

Even one missed payment can drag down your score.
✅ Set up automatic payments to cover at least the minimum.

3. Keep Your Balance Low

Aim to use less than 30% of your credit limit.
Example: If your limit is $1000, keep your balance under $300.

4. Don’t Apply for Too Much Credit at Once

Every new application creates a hard inquiry, which can lower your score temporarily. Focus on managing one card well before adding more.

5. Check Your Credit Reports

In Canada, you can request a free credit report from Equifax and TransUnion. Checking your own report is a soft inquiry — it doesn’t hurt your score.

Bottom Line

Building credit is a marathon, not a sprint. Start small, stay consistent, and within months you’ll see your score begin to climb.

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