How to Rebuild Your Credit Score in 60–90 Days in Canada

Rebuilding your credit score may feel overwhelming, but it is entirely achievable with the right strategy. Many Canadians believe credit repair takes years, but with consistent steps, it is possible to see measurable improvement within 60–90 days. Whether your goal is to qualify for a mortgage, reduce debt, or regain financial stability, understanding how credit scoring works is the first step toward rebuilding.

This guide outlines the most effective methods Canadians can use to rebuild credit quickly and responsibly.

Understanding How Your Credit Score Is Calculated

Canada’s two major credit bureaus—Equifax and TransUnion—use several factors to determine your credit score. Each factor influences how quickly you can rebuild.

Payment History

This is the most important component. Missed or late payments negatively affect your score, while consistent on-time payments help it rise.

Credit Utilization

This refers to how much of your available credit you use. A high balance on credit cards can significantly lower your score.

Length of Credit History

The longer you maintain open, active accounts, the better your score becomes over time.

Public Records and Collections

Accounts in collections or judgments can lower your score but can also be improved once addressed.

New Credit Inquiries

Applying for several credit products in a short time can temporarily reduce your score.

Understanding these components allows you to focus on the steps that create the fastest improvement.

Step 1: Bring All Payments Up to Date

If any accounts are past due, bringing them current is one of the most effective ways to improve your credit score. Payment history makes up a large portion of your score, and even one missed payment can reduce it.

If you cannot bring everything current at once, prioritize:

• Secured credit cards

• Credit cards with high interest

• Installment loans

• Accounts close to going into collections

Consistency is key. Once you begin making regular payments, your score will gradually improve.

Step 2: Reduce Your Credit Utilization Ratio

Credit utilization refers to the percentage of available credit you are currently using. A utilization rate above 50 percent can significantly lower your score.

To improve this quickly:

• Pay down credit card balances as much as possible

• Aim for a utilization rate below 30 percent

• Avoid maxing out or nearing limits

• Avoid adding new charges while rebuilding

Even small reductions in your balance can create noticeable changes within 30–60 days.

Step 3: Resolve or Negotiate Accounts in Collections

Accounts in collections remain on your report for several years, but addressing them can help your score recover faster. Options include:

• Negotiating a reduced payment

• Setting up an affordable repayment plan

• Disputing incorrect information

• Using a debt relief program to reduce or settle the balance

Once a collection is resolved, your credit report will begin updating to reflect an improved status.

Step 4: Add a Positive Credit Product

To rebuild your credit score quickly, it helps to add a product that reports positive payments each month. Common options include:

Secured Credit Card

You provide a deposit that becomes your limit. Payments are reported monthly and help rebuild credit.

Credit Builder Loan

Small monthly payments are reported to the bureaus to build credit history.

Subscription-based credit building services

These programs report your monthly subscription to the credit bureau as a tradeline, helping you improve your score even without traditional credit.

The key is that all payments must be made consistently.

Step 5: Avoid Applying for New Credit Frequently

Every time you apply for a new loan or credit product, a hard inquiry appears on your credit report. Multiple inquiries in a short period can reduce your score.

Apply only when necessary, and avoid taking on new high-interest debt.

Step 6: Review Your Credit Report for Errors

Studies show that many Canadians have inaccuracies on their credit reports. Errors may include:

• Incorrect balances

• Duplicate debt

• Outdated information

• Accounts that do not belong to you

• Incorrect payment history

You can request free reports from both bureaus once per year and dispute any incorrect information. Correcting errors can result in rapid improvement.

Step 7: Build Consistency Over 60–90 Days

Credit rebuilding is driven by routine. To see meaningful results, focus on the following:

• Making all payments on time

• Keeping credit utilization low

• Maintaining stable accounts

• Avoiding unnecessary inquiries

Most Canadians begin to see noticeable increases within 60–90 days when these steps are followed closely.

When Professional Credit Support Is Necessary

If your credit score is affected by collections, missed payments, or a high debt load, professional support may help you rebuild faster. Programs designed for credit recovery offer:

• Structured payment plans

• Debt reduction support

• Credit bureau reporting

• Guidance on improving your credit mix

• Personalized strategies based on your goals

These services are especially helpful for individuals preparing to apply for a mortgage or major loan.