Information checked: September 16, 2026 | General guidance; no guarantee of credit, lending or rental approval.
When settling in Canada, checking your credit file and choosing an affordable product that meets a real need is more useful than chasing a particular score. A credit report records accounts, payments and inquiries; a credit score is a number calculated from report data using a scoring model. They are different things. Equifax Canada and TransUnion Canada are the main credit bureaus, rather than government offices assigning everyone a score. See the FCAC introduction to reports and scores.
Canadian bureaus generally do not automatically import your overseas credit history. That does not make it worthless: some financial institutions may consider a foreign report or assess income, assets and other documents. Ask which records they accept and whether a newcomer arrangement applies. Neither automatic transfer nor automatic rejection without a Canadian history should be assumed. FCAC explains the treatment of foreign credit history.
Canadian credit scores commonly range from about 300 to 900. A score is one part of a risk assessment, not a guarantee of a card, a particular interest rate or an apartment. Both Equifax and TransUnion explain that models and lending decisions differ. A score is not a measure of income or wealth, nor a determination of immigration eligibility or permanent residence.
Get your reports before choosing what to apply for
You can obtain free credit reports from both bureaus. A report, a score and a paid monitoring subscription are distinct services; check the product and price before enrolling. FCAC links to the official request channels, and Equifax describes online, telephone, mail and in-person options. At this review date, TransUnion includes a free score with Consumer Disclosure for Ontario and Quebec residents; access to scores elsewhere may differ. A paid subscription is not required to obtain the free report.
A SIN is not a general legal requirement for applying for a credit card, loan or mortgage, or requesting a credit report. Service Canada’s SIN guidance distinguishes credit services from income-earning accounts and investments subject to tax reporting. Those tax requirements should not be extended to every financial service. A SIN can help match your file; ask about other identity checks if you prefer not to provide it. Equifax makes it optional for mail and in-person report requests, while its automated telephone route requires it. That channel requirement is not a law requiring everyone to give a SIN to check credit.
Compare names, addresses, account ownership, limits, balances, payment status and inquiries. The bureaus’ reports may differ because lenders do not always report to both or update them at the same time; scoring models can differ too. TransUnion’s reporting explanation and Equifax’s scoring guidance support those distinctions. They do not establish that a 20–50-point difference is always normal or justify ignoring an unfamiliar account.
Keep statements and payment receipts when disputing an error. Contact the bureau that supplied the report and the lender that supplied the information. Confirmed errors must be corrected for free. If an unfamiliar account suggests identity theft, contact the affected organizations and both bureaus, arrange fraud alerts and report the fraud. FCAC explains correction, fraud reporting, escalation and consumer statements. Do not pay for a promise to erase accurate negative information or publicly share a full report containing account numbers and your SIN.
With little credit history, ask about a regular card, a relevant newcomer arrangement or a secured credit card backed by a deposit. Compare annual fees, interest, limits, identification requirements and deposit-return conditions. The deposit does not replace monthly payments or guarantee approval. FCAC’s card-selection guide notes that secured cards may have application or setup fees as well as annual fees. A prepaid card and a credit card that lets you borrow are different products; choose for your actual needs rather than a promised score increase.
Payments, inquiries and retention follow different rules
Payment history matters. Pay at least the minimum by the due date and, when affordable, clear the statement balance to limit debt and interest. Making the minimum payment does not mean interest-free borrowing. Contact the lender early if you expect difficulty rather than skipping a payment. Equifax explains the effect of missed payments, while FCAC distinguishes minimum and full payments; allow time for your payment to be processed. Automatic payments still require enough money in the paying account.
Credit utilization compares credit used with credit available. FCAC recommends trying to use less than 30% of available credit. This is general guidance, not an approval threshold or a guaranteed scoring formula. Lower balances generally help, but do not buy unnecessary things, open multiple cards or borrow more just to manipulate a ratio. Reporting dates and models differ; paying in full each month does not guarantee that a report will show a zero balance.
A hard inquiry associated with a new credit application may affect a score; soft inquiries, such as checking your own report, generally do not. TransUnion distinguishes credit inquiries from non-credit and account-review inquiries, and FCAC advises limiting unnecessary applications close together. There is no fixed number of points lost each time someone checks a file. Do not avoid checking your own report for fear of lowering your score; ask what kind of inquiry an application involves.
A longer, positive history can help, but keeping every old card forever is not a rule. FCAC suggests considering an older account while weighing fees. Also consider whether you need it, can manage it, and face loss or fraud risks. Before closing a card, check the balance, recurring payments and available credit elsewhere, then contact the issuer. Maintaining history is not a reason to pay unnecessary annual fees or stay in debt.
There is no single rule that all negative records last six years, or seven years throughout Ontario. FCAC explains that record type, bureau and provincial or territorial law matter. Equifax lists separate rules for late payments, collections, bankruptcy, judgments and consumer proposals. For example, it removes a consumer proposal three years after completion or six years after filing, whichever comes first. TransUnion describes six years from first delinquency for certain ordinary adverse or collection accounts, with different periods and starting points for judgments, bankruptcies and multiple bankruptcies. Paying a debt does not necessarily remove an accurate record immediately; check the category and dates of the actual entry.
A landlord may consider a credit report, but rental deposits are governed by provincial rules, not a nationwide score-based formula. For tenancies covered by the relevant legislation, BC generally limits a security deposit to half a month’s rent, with a separate half-month limit and exceptions for permitted pet damage deposits. Ontario’s LTB says a rent deposit is limited to one month for monthly rent or one week for weekly rent, and must cover the final rental period rather than damage. These are examples, not a complete deposit guide; shared homes or student residences may fall under different rules. A lack of credit history does not automatically make a demand for several months’ deposit lawful.
Start with a monthly routine: check bills and due dates, reserve money for payments, investigate unusual changes and apply for new credit when you actually need it. This is a management method, not a promise to reach a score within a few months. For mortgage preparation, see the Canadian home-buying guide; other settlement topics are in the Canada life guide.