Ad: University of Toronto

Our CISM editions:

more to come …

credit cards
How to Improve Your Credit Score
credit cards

How to Improve Your Credit Score

A credit score is a three-digit number designed to represent the likelihood you will pay your bills on time. Credit scores are crucial as they impact the bank’s decision on your approval of future loans, issuing a new credit card, and more. Whenever any bank rejects any loan, a credit card is to blame. If you don’t want to get stuck in an undesirable situation like this, here are a few tips to have a desirable credit score. 

What is the average Canadian credit score?

According to Equifax, which is one of the main credit card bureaus in Canada, credit scores are divided into the following categories:

  • 760 to 900: Excellent
  • 725 to 759: Very good
  • 660 to 724: Good
  • 600 to 659: Fair
  • 300 to 599: Poor

Credit scores should always be on the higher side to show the credit card user’s responsible credit behaviour in the past, which helps them approve their loan faster.

Below are the factors that affect your credit score:

  • Duration of time that you had credit
  • If you carry a balance on your credit card or not
  • If you missed any payments, if yes then how much?
  • The amount of debt you have
  • How much you spent in total 
  • If you’ve ever filed for bankruptcy
  • Credit utilization rate

Credit utilization rate means the amount of credit used vs. your total credit available. This rate represents the amount of credit you have used, divided by the total credit available to you. Money lenders appreciate a credit utilization rate of 30% or lower.

How to have a good credit score?

  • Be aware of the factors that impact your credit score

The first and most important thing to be kept in mind is that you must take care of the factors listed above, as all these factors demonstrate your level of financial responsibility. These components show how timely and efficiently you pay your credit card bills. Your credit history gives the loan lenders an idea of whether you’ll pay them back on time.

By knowing what affects your credit score, you can do better with bill payments. Once your credit rating goes up, you get the loans approved consistently, meaning there will be fewer chances of rejection. Loan rejections are devastating, so it is always important to be careful!

  • Use your credit card consistently

Even if you have money in the form of cash or debit cards, it is advisable to use your credit card so that you develop a good payment history over time. By the time you finish your education, if your credit score is in good standing, you can easily buy a car and will have a lower interest rate. 

  • Pay the bills on time

You must pay all your credit card bills on time to be debt-free. You must make a list of your payments and mark the dates on the calendar (the deadline for your payments to avoid interest) so that you never miss a payment.

  • Make a wise budget

You must always make a budget for everything and make sure that you stick to the budget. Going overboard on the budget impacts your financial stability a lot. This, in turn, impacts your credit card score. 

  • Save money if you can

Saving money and credit scores go hand in hand. If you have a good amount of money saved, you will not struggle to pay your credit card payments on time. Overall, it will be very beneficial for you. Savings help!

  • Be patient 

Keep in mind that your credit score takes time to build, so it is something that will not happen instantly. With consistent efforts and saving wisely, you can get the credit score you need so that all your future loans get approved timely. 

By following all the above-mentioned steps, you will certainly be able to boost your credit score! So, what are you waiting for? Go ahead and make your budget, regulate your expenses, and save money so that you always make your payments on time and have a desirable credit score!

Source: Calculate your credit score

The information has been gathered as accurately as possible at the time of writing, but we cannot guarantee its accuracy or completeness. For the most accurate and up-to-date information, please check the official website and digital channels.
Share This Post
Additonal Setting with CSS
Related Articles​
Please feel free to contact us about this article
Please note : We will generally reply to you within 2-3 business days. Please contact us at if you don't get any reply from CISM.

Copyright & Disclaimer

The information on this site is for information purposes only. Canada International Student Magazine Inc (CISM) assumes no liability or responsibility for any inaccurate, delayed or incomplete information, nor for any actions taken in reliance thereon. The information contained about each individual, event or organization has been provided by such individual, event organizers or organization, or third parties without verification by us.

Any form of reproduction of any content on this website without the written permission of the publisher, is strictly prohibited. CISM is operated by Canada International Student Magazine Inc. a trademarked company; all rights reserved.

Contact to CISM

Please note : We will generally reply to you within 2-3 business days. Please contact us at if you don't get any reply from CISM.

Do you want to study in Canada?

Ask us any questions about studying here in Canada! Fill out the form and we will get back to you.