How to Build Credit in Canada

Credit report created when you first borrow or apply; Equifax and TransUnion are the two main bureaus and only collect Canadian credit activity; some lenders may look at foreign history (foreign report, bank officer); score is a 3-digit number usually 300 to 900, higher is better; uses and effects on renting and jobs; common score factors; formulas differ and aren't shared; the score you see may differ from a lender's; checking your own report or score doesn't affect it.

Payment history is the most important part of the score; payment tips; use less than 30% of total limit and keep utilization low even when paying in full; long and stable history, effects of closing older accounts and opening new ones, when to keep an account open; hard vs soft inquiries; car loan/mortgage quotes within two weeks count as one; credit mix; borrow only what you can repay.

Late or unpaid credit card and loan information up to 6 years; lender inquiries 3 years with Equifax or 6 years with TransUnion.

Secured cards: deposit, limit equal to or higher than deposit, deposit from a few hundred to a few thousand dollars, possible set-up and annual fees, caution with unknown or foreign issuers, unbranded cards accepted at fewer stores, deposit returned on closing after paying the balance; options for newcomers and people with no history.

Purchases by an additional cardholder won't help build their credit history.

Free credit reports online from Equifax and TransUnion; Equifax score free in all provinces and territories; TransUnion score free in Quebec and Ontario.

Right to dispute information; credit bureaus must correct errors for free; check reports from both bureaus.