How to Rebuild Your Credit in Canada
Review your credit file, address errors and build sustainable repayment habits without promises of an instant score increase.
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By Financial Debt Recovery Limited Compliance & Editorial Team
Start with both credit reports
Request your credit report from Equifax Canada and TransUnion Canada. Review identifying information, payment history, balances and collection entries. The two files can differ, so reviewing only one may miss an error. Keep copies so you can compare later updates.
Correct errors and verify unfamiliar accounts
Dispute inaccurate information with the credit bureau and the organization that supplied it. Keep supporting documents and a record of your communications. If an FDR account or call is unfamiliar, call 905-771-6000 or 1-800-763-3328, or send a message through our Contact page to verify it directly.
Choose a sustainable resolution
List required living expenses and outstanding obligations before proposing a payment arrangement. Ask for confirmation of any agreed terms. Paying or settling a collection balance can update its status; it does not necessarily remove accurate historical information or guarantee an immediate score increase.
Build consistent payment habits
- Pay bills on time; contact your lender promptly if you cannot meet a payment.
- Use reminders or automatic minimum payments, while checking that sufficient funds are available.
- Keep credit use low. FCAC suggests using less than 30% of your available credit.
- Limit unnecessary applications and keep established accounts in good standing.
Measure progress without a promised timeline
Scoring models, reporting schedules and individual files differ. Review changes over time rather than expecting a particular increase in a fixed number of months. A secured credit card may be an option, but compare costs and make sure repayment fits your budget. General education does not replace advice tailored to your circumstances.