How Long Does it Take to Build Credit in Canada?

How Long Does it Take to Build Credit in Canada?

April 13, 2021    Credit Score

Are you trying to build credit in Canada but wonder how long it takes for you to build good credit in the first place? It can take a long time to build your credit score from a good one to an excellent one, but we have all the tips and tricks to get it into a good standing score in the shortest amount of time.

Patience and discipline are two of the most important qualities that you need to practice when you are trying to build your credit. It takes time and unfortunately cannot simply happen overnight or by opening up a credit card account. 

So how much time exactly does it take to build credit in Canada? Read along as we unpack everything you need to know about building a good credit score and how long it may take in Canada. 


Starting Point – what credit score do you start off with?

Before you open credit cards, accounts, or any sort of loan, you will not have a credit score on record at all. You need to open up an account or get yourself a credit card before you can begin to have a positive or negative impact on your credit score. 

Typically in Canada, people open up their first credit card when they are 18. Of course, everyone’s situation is different. Some individuals may have one from a younger age while others wait until they’re older, but getting a credit card is a great choice for young adults who are working to build up their credit score. 


Credit scores typically range between 300-900

With the average Canadian credit score landing around 650. If you are just starting to build your credit, it’s unlikely you will have an excellent credit score to start. Scores over 700 are considered to be good and they can take years to build. Remember to stay patient, responsible and consistent and with some time, you will slowly begin to see that score rise. 


person working on their laptop


How long does it take to fix bad credit?

Fixing bad credit can sometimes take a while to do. It is very important to do your best to try to improve your score if you know that it may be suffering. 


Change can happen in little as 3-6 months

It can be as little as three to six months to begin noticing a change in your credit score if you are working to improve it. These changes are a reflection of your consistency in repaying any loans or credit cards you may have. On average, to get a very poor credit score to turn into a good one, it takes about six years of consistently making bill payments on time. However, the sooner you start the better, you can start to build your score with simple steps and with time it will improve.


How long does it take to build credit in Canada?

It takes time to build an excellent credit score in Canada, however, it only takes about three to six months to build up enough credit history to get a base-level credit score. The accuracy of this score is solely determined by how many loans you have taken out and how well you have been able to pay them back. Even if you have been paying off your credit card perfectly and in full for the first three to six months of having it, your score will not be as high as if you have been paying your bills perfectly for a couple of years. 

Once you have achieved the credit score you want, you need to continue working hard to keep it high. Even with a high score, you’re not immune to credit score changes 


Why does your credit score matter?

You may be thinking, why does my credit score even matter? Who needs a higher score? What do I get from having a high score? Well, there is no simple answer to these questions, but there are plenty of benefits to having a high score. 


You’ll pay higher interest

Whenever it comes to purchasing a high ticket item such as a house or a car, your credit score gets considered for the loan. It is not impossible to get a loan with a lower credit score but you can still get approved even if you have lower credit (this is where we come in)

In some cases, your credit score gets considered when you may want to rent an apartment or a home. This is not the case with every lease you may come across, but it is not unlikely for the landlord to request your credit score, along with other factors such as income, to determine if you are the right fit for that lease. 

These are a couple of the most important reasons that you should care about your credit score. If you have read this far, we know you do care about your credit score and want to build it.


How getting a car loan can help you build your credit

If you are an individual who doesn’t have the best credit score, but you are working to improve it, we are with you! The best thing you can do is notice your low credit score and realize it’s time to make changes. Here at Birchwood Credit, we understand there are many reasons why someone may have poor credit, but that doesn’t mean that should stop them from living a full life with the things they need.

  • A car loan will help you to improve your credit score
  • A car can help you in your day to day life
  • A car loan is a great place to start when you are trying to learn more about credit scores and monthly bills. It is a payment that is more affordable than renting a home or a mortgage, but more than simply paying your phone bill

A car is something that people need. Whether the need is to drive to work, visit family and friends, take the kids to school, or anything else, a car is super important in our lives. It makes everything just a little bit easier. However, they can be expensive.

Having a car loan that you are consistently able to pay on a monthly basis, creates a credit report demonstrating that you are properly managing your credit. If you are making your monthly loan payments as well as paying the other bills you may have on time, you will shortly start to see your credit score getting built.


At Birchwood Credit, we help people get into an affordable car and even provide loans for those with less than perfect credit. We offer bad credit car loans to individuals who are looking for an affordable new or used vehicle. We look past your credit score and provide you with a monthly payment plan and fixed interest rate. Based on your income, we’ll match you with a variety of vehicles that are most affordable for you – it’s easy and hassle-free. 

Apply now and get yourself into a vehicle that’s perfect for you and what you need. The application process is quick, online and convenient. One of our associates will reach out to you after receiving your application and collect some information such as your employment information and income, so we have the best understanding of what you can afford!

Birchwood Credit prides itself on being able to help people who have less than perfect credit without judgment. We know that everyone comes from different walks of life, that doesn’t mean they are more or less deserving of good credit, or even a car. Your past doesn’t have to be your future – let’s work together to build a better life and credit score today.

Caleigh Smith
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