Credit Action Planner

Set up a reliable payment routine

Payment history is a major factor. Use reminders or automatic payments for at least the minimum, and contact the lender early if a payment may be difficult.

Payment history

Keep revolving balances manageable

FCAC suggests trying to use less than 30% of available credit. Treat that as a practical guideline, not a score cutoff. Paying the statement balance avoids interest; carrying a balance does not build credit.

Balances and utilization

Review both credit reports for errors

Check the reports held by Equifax and TransUnion, dispute information that is inaccurate, and follow up with the lender or bureau. Correcting an error helps only if it affected your file or score.

Report accuracy

Build a track record with credit you can manage

If you need to establish credit, consider one suitable product, such as a secured card. Check fees and confirm the provider reports to the bureau before signing up.

Credit history

Review the cost before closing an older account

Closing an account can affect available credit or account history differently across scoring models. Weigh those effects against annual fees, security, and whether the account still suits you.

Credit history and balances

A payment becomes late

Late or missed payments can hurt your score and may stay on a report for up to six years. If you are struggling, contact the lender before the due date where possible.

Payment history

Balances rise close to credit limits

Higher reported balances may affect your score. The balance a bureau sees can depend on when the lender reports, so paying down debt is useful even when you pay in full each month.

Balances and utilization

Several unrelated credit applications happen close together

Hard inquiries may affect scores. Some scoring models recognize rate shopping for a car loan or mortgage, but the time window depends on the model.

Recent applications

A bill is at risk of going to collections

An account sent to collections can damage your credit. Verify the debt and contact the creditor or a reputable credit counsellor to discuss options.

Payment history