What’s a file?
How do you build credit from zero?
No score isn’t a bad score. It’s a blank one. Here’s how the number works, why you have more than one, what a good score is in the US and Canada, what one late payment costs, and how to build credit from nothing, the honest way.
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Your credit report is your money history. Your credit score is a number calculated from it. With no history there’s no number: no score is a blank score, not a bad one.
To build one from zero, use one small account well: a first card or secured card with one small bill on autopay, paid in full, or become an authorized user on a clean, old card. A first FICO score needs an account open 6 months or more (Canada: about 3 months of reporting).
Pay on time. Use little. Then wait. That’s 65% of your score.
Where are you starting?
Pick a card to open your file →
You’ll see what moves your score, how long it lasts, and your next step.
What’s in the number
FICO’s five ingredients09- Payment history 35%
- Amounts owed 30%
- Length of credit history 15%
- New credit 10%
- Credit mix 10%
65% of the whole thing is two habits: pay on time, don’t use too much of your limit.
How long things last
| Item | US | Canada |
|---|---|---|
| Late payment | 7 years (most negative information)18 | up to 6 years19 |
| Hard inquiry | stays up to 2 years; FICO counts it for 1 year30 | 3 years Equifax / 6 years TransUnion19 |
| High balance | until the next report29 | until the next report29 |
| Paid collection | disregarded by FICO Score 9 when paid in full32 | |
| Medical collections under $500 | removed from US credit reports33 | n/a |
| Credit freeze | doesn’t affect your score at all31 |
Scam check: is that “credit repair” offer real?Three signs from the video
- 1. They want payment first. In the US it’s illegal for credit repair companies to charge you before they help you.26
- 2. They promise a score. Nobody can quickly and easily fix your credit score. Improving it takes time.27
- 3. They say “don’t contact the bureaus.” That’s a scammer’s line: you can always go to the credit bureaus yourself, for free.26
A stranger in your messages offering a “new credit identity”? A promise to create a new credit identity or hide your bad credit history is a scam.26
Sources (37)Every number in this tool, linked to where it comes from
- 01 CFPB: credit report vs credit score: Two different things; scores are calculated from your report
- 02 myFICO: building credit history: A FICO score needs an account open 6+ months, reporting for the last 6 months
- 03 Experian: your first credit score: A VantageScore can often show up within a month
- 04 Equifax Canada: unscoreable: Scoreable after about 3 months of credit reported to Equifax
- 05 Ontario Human Rights Commission: tenants: A lack of rental or credit history should not count against you
- 06 FTC: free credit reports: Free weekly reports from all three bureaus at AnnualCreditReport.com
- 07 FCAC: getting your credit report: Free online from Equifax and TransUnion
- 08 CFPB: checking your own credit: Checking your own credit doesn’t affect your scores
- 09 myFICO: what’s in your score: Payment history 35%, amounts owed 30%, length 15%, new credit 10%, mix 10%
- 10 Equifax Canada: how scores are calculated: Many scoring models; payment history ~35%, used vs available credit ~30%
- 11 FCAC: improving your credit score: Payment history is the most important part
- 12 Experian: 6 ways to establish credit: Authorized users, secured cards, credit-builder loans that report
- 13 Experian: being an authorized user may not be enough: An authorized user’s own payments don’t show up on their report
- 14 CFPB: ways to start or rebuild credit: Secured card ($500 example) and credit-builder loans
- 15 Experian: does renting build credit?: Fewer than 5% of tenants’ rent payments are reported
- 16 Equifax Canada: how to build credit: Rent reporting services; newcomer cards; a $300 secured card example
- 17 Experian: a one-day late payment: Under 30 days late isn’t reported to the bureaus
- 18 CFPB: removing accurate negative information: Most negative information stays 7 years; accurate info generally can’t be removed
- 19 FCAC: how long information stays: Late payments up to 6 years; inquiries 3 years Equifax / 6 years TransUnion
- 20 myFICO: how credit actions impact FICO Scores: Sophia and Maria: a simulated FICO Score 9 example
- 21 CFPB: how to rebuild your credit: Recent negative information counts more than older
- 22 FTC: disputing errors on your credit reports: Dispute with each bureau; 30 days to investigate
- 23 CFPB: how to dispute an error: Furnishers generally respond within 30 days; complain to the CFPB
- 24 Equifax Canada: dispute your report: Free online or by mail; about 15–20 days online
- 25 Experian: what is a goodwill letter?: A favor, not a right: creditors don’t have to agree
- 26 FTC: fixing your credit FAQs: Credit repair scams: paying first, “don’t contact the bureaus”, a new credit identity
- 27 FCAC: debt and credit repair alert: No one can quickly and easily fix your score
- 28 Ontario: credit reports: Credit repairers can’t charge until your credit improves; 10 days to cancel; the Registrar
- 29 Experian: credit utilization rate: Most scores only use the latest reported numbers
- 30 myFICO: do inquiries lower your score?: Hard inquiries stay up to 2 years, count for 1
- 31 CFPB: credit freeze: A freeze doesn’t affect your scores; it’s free
- 32 FICO: FICO Score 9 (Mar 8, 2016): Paid-in-full collections are disregarded
- 33 Equifax, Experian and TransUnion (Apr 11, 2023): Medical collections under $500 removed from US reports
- 34 TransUnion Canada: credit report disputes: Dispute online or by mail
- 35 Equifax (US): file a dispute: Online dispute page
- 36 Experian: dispute credit report information: Online dispute page
- 37 TransUnion (US): credit disputes: Online dispute page
Credit report vs credit score
Two different things, and almost nobody gets taught the difference.
- Your credit report is your money history on paper: every card, every loan, how much you owe, whether you paid on time, who’s been checking. Companies called credit bureaus keep that file on you.
- Your credit score is a number a computer works out from that report.
The grade comes from the transcript. No transcript, no grade. The CFPB puts it in one line: “Your credit scores are calculated based on the information in your credit report.” SOURCE 01
Why you have “no score” (and why that’s not bad)
Dex had a card for three weeks. In his mind, three on-time weeks were a credit history. But the most common score in the US, the FICO Score, has a rule. To make a score at all, you need:
FICO’s minimum to score you
0 of 2 checkedmyFICO · “How Do I Go About Building My Credit History?”
“at least one account opened for six months or more”
myfico.com (opens in a new tab)Three weeks isn’t six months. It’s like being three days into a new job and asking for your performance review: nobody’s watched you long enough to grade you.
- VantageScore can often show up much sooner, “within a month of the account appearing.” SOURCE 03 But many lenders and landlords use FICO, so plan for six months.
- Canada is a little faster. Equifax says most people become scoreable after about three months of reported credit, so four to five months in real life once the paperwork catches up. SOURCE 04
Equifax Canada says it too: having no score is not an indicator of bad credit history. SOURCE 04
Consumer Financial Protection Bureau · “Technical correction and update to the CFPB’s credit invisibles estimate”
“The estimated share of credit invisibles in December 2020 was 2.7 percent (7.0 million consumers).”
files.consumerfinance.gov (opens in a new tab)Three apps, three scores: which one is real?
Jordan checked three places and got three numbers: 668, 681, 652. That’s the moment people decide credit is a scam. It isn’t. It’s just badly explained.
- Different files. The US has three big credit bureaus. Your lenders don’t all report to all three, and not on the same day, so each bureau has a slightly different copy of your file.
- Different formulas. Mainly FICO and VantageScore, each in several versions.
| Where he looked | The formula behind it | Score |
|---|---|---|
| Bank app | FICO 8 · bureau 1 | 668 |
| Free score app | VantageScore 3.0 · bureau 2 | 681 |
| Bureau site | FICO 8 · bureau 3 | 652 |
- The formula behind it
- FICO 8 · bureau 1
- Score
- 668
- The formula behind it
- VantageScore 3.0 · bureau 2
- Score
- 681
- The formula behind it
- FICO 8 · bureau 3
- Score
- 652
All three are real. They’re just not identical, like three schools grading a slightly different copy of your transcript. The CFPB says it plainly: you have many credit scores, and “lenders also use different credit scores for different types of loans.” SOURCE 06
- The free score in an app is usually a VantageScore.
- The score a lender pulls is often a FICO.
So if your app said 720 and the car dealer saw 650, nobody lied to you. They were reading different things.
What matters more than the number is the file underneath it. If the file is right, all your scores move together.
How to see your file for free
- AnnualCreditReport.com is the official site. The three bureaus have permanently made it free to check each report once a week. Not once a year: every week.
- Two bureaus: Equifax and TransUnion. Both reports are free online.
- Equifax gives you a free score. TransUnion’s score is free if you live in Ontario or Quebec.
And checking never hurts. Looking at your own report or score is a soft check: “Checking your own credit does not affect your credit scores.” SOURCE 09 A hard check is when you apply for credit. (More on those below.)
What is a good credit score?
| Range | Rating |
|---|---|
| 300–579 | Poor |
| 580–669 | Fair |
| 670–739 | Good |
| 740–799 | Very good |
| 800–850 | Exceptional |
- Rating
- Poor
- Rating
- Fair
- Rating
- Good
- Rating
- Very good
- Rating
- Exceptional
Experian · “What Is a Good Credit Score?”
“a credit score of 670 to 739 is considered good”
experian.com (opens in a new tab)FICO · “FICO® Score Credit Insights Report: Average FICO Score Dips to 714”
“showing the average U.S. FICO Score declined to 714”
investors.fico.com (opens in a new tab)Experian · “What Is the Average Credit Score in the U.S.?”
Average FICO® Score by age, 2024 → 2025: “Generation Z (18-28) 681 678 -3 points”
The same page gives the overall US average as 713 (Experian data); our 714 is FICO’s own figure (source 40).
experian.com (opens in a new tab)So if you’re in your twenties and in the high 600s, you’re not behind. You’re normal.
| Equifax Canada | |
|---|---|
| 660–724 | Good |
| 725–759 | Very good |
| 760+ | Excellent |
- Good
- Very good
- Excellent
Equifax Canada · “What is a Good Credit Score in Canada?”
“credit scores from 660 to 724 are considered good”
equifax.ca (opens in a new tab)TransUnion doesn’t give a single number: it says a good score is one that helps you reach your goals. SOURCE 44
“You need 700 to rent here”
That’s the landlord’s rule, not a law. There’s no magic number for renting an apartment. Every landlord sets their own bar, and most also look at your income and rental history. SOURCE 12
Is 800 worth chasing?
It’s nice for bragging rights. But FICO’s very good starts at 740, and past that, many lenders treat you about the same. Don’t lose sleep chasing 850. Chase good habits, and the number follows.
What your score is made of
FICO publishes its recipe: five ingredients. SOURCE 13
| Ingredient | Weight | In plain words |
|---|---|---|
| Payment history | 35% | Did you pay on time? |
| Amounts owed | 30% | Mostly how much of your limits you’re using |
| Length of history | 15% | How old your accounts are. Only time fixes it |
| New credit | 10% | How many accounts you’ve opened lately, and how often you’ve applied |
| Credit mix | 10% | Cards plus loans. Nice to have, never worth borrowing for |
- Weight
- 35%
- In plain words
- Did you pay on time?
- Weight
- 30%
- In plain words
- Mostly how much of your limits you’re using
- Weight
- 15%
- In plain words
- How old your accounts are. Only time fixes it
- Weight
- 10%
- In plain words
- How many accounts you’ve opened lately, and how often you’ve applied
- Weight
- 10%
- In plain words
- Cards plus loans. Nice to have, never worth borrowing for
FICO itself says you don’t need one of each kind of account. SOURCE 13
- FICO: 35 / 30 / 15 / 10 / 10.
How to build credit from zero: the 5 doors
“I need credit to get credit.” It feels like a trap. But there are doors made exactly for people with no history.
Door 1: the first card you already have
A first card works, as long as you treat it like a debit card. Put one small bill on it, like your phone bill. Pay the full statement balance every month, on autopay. Pay it down before the statement closes, so a tiny balance is what gets reported. (FILE 004 explains statement balance vs minimum: Your first credit card.)
Door 2: become an authorized user
Someone with a long, clean history adds you to their card, and their account can show up on your report with all its years of on-time payments. Dex’s Mom has had her card for 30 years and never paid late. Experian says being an authorized user “can provide an instant benefit.” SOURCE 16
Door 3: a secured card
You give the bank a deposit (the CFPB’s example is $500; ours is $300), and that becomes your limit. SOURCE 18 It’s a real credit card that reports like one, but you can’t get in over your head, because it’s your own money holding the door.
Door 4: a credit-builder loan
Backwards on purpose. The lender locks the money in a savings account, you make small monthly payments, and when you’re done, you get the money: credit and savings at the same time. SOURCE 18
Door 5: your rent
You’re paying it anyway. Some landlords and services can report it. In the US it’s still rare: fewer than 5% of rent payments get reported. Check the fees. SOURCE 19
- Rent reporting is opt-in and rare; check the fees.
- Services can help you and your landlord report your rent to the credit bureaus.
- Some phone companies report bill payments. Ask yours.
- New to Canada? You probably don’t have a Canadian credit history yet. Many banks have newcomer cards; start one door in your first month.
One late payment: how much it hurts, and for how long
First, the good news. A few days late usually means a late fee, but it doesn’t go on your credit report. In the US, a payment generally isn’t reported late until it’s 30 days past due. SOURCE 21
Jordan didn’t. He hit 30, and that’s when it landed on his report.
| US | Canada | |
|---|---|---|
| Late payment | up to 7 years (most negative information) | up to 6 years |
| Paying it off afterwards | doesn’t erase the record | doesn’t erase the record |
- US
- up to 7 years (most negative information)
- Canada
- up to 6 years
- US
- doesn’t erase the record
- Canada
- doesn’t erase the record
Consumer Financial Protection Bureau · “Is it possible to remove accurate but negative information from my credit report?”
“You generally cannot have negative information removed from your credit report if it is accurate.”
consumerfinance.gov (opens in a new tab)Financial Consumer Agency of Canada · “How long information stays on your credit report”
“information about late or unpaid credit cards and loans: up to 6 years”
canada.ca (opens in a new tab)How much does one hurt? FICO shows an example (simulated FICO Score 9). It’s FICO’s example, not a prediction for you:
| Sophia | Maria | |
|---|---|---|
| Score before | 607 | 793 |
| 30 days late | 570–590 | 710–730 |
- Sophia
- 607
- Maria
- 793
- Sophia
- 570–590
- Maria
- 710–730
myFICO · “How Credit Actions Impact FICO® Scores.”
“Both individuals see a substantial loss of points when they fall 30 days behind on a payment”
myfico.com (opens in a new tab)The cruel part: the better your score, the more one late payment costs you.
It fades
Seven years is how long it stays, not how long it hurts this much. The CFPB: “recent negative information has more of an effect on your credit score than older information.” SOURCE 25 Every on-time month you stack on top pushes it further back. Like a stain on your favourite shirt: it doesn’t vanish overnight, but wash after wash it gets lighter, until one day you have to look for it.
Financial Consumer Agency of Canada · “Understanding Your Credit Report and Credit Score” (hosted by Quebec’s Office de la protection du consommateur)
“if you have a credit card account that you paid on time, it will be reported as "R1."” / “Late payment: 31–59 days late” / “The worst rating you can receive is 9. It usually means the lender has written your account off or sent it to a collection agency.”
R ratings: 1 is the best, 2 is 31–59 days late, 9 is the worst.
cdn.opc.gouv.qc.ca (opens in a new tab)Wrong or right? Dispute vs goodwill letter
The most important split in this whole file, and the one most people get backwards. Before you fix anything on your report, ask one question: is it wrong, or is it right?
| It’s wrong (Jordan’s store card) | It’s right (Jordan’s real $57) | |
|---|---|---|
| What you do | Dispute it. A legal right, and free | Ask nicely: a goodwill letter |
| With whom | The credit bureau (and/or the company that reported it) | The company you were late with |
| What happens | Fixed or deleted if they can’t prove it; results in writing | They may remove it as a courtesy. They don’t have to |
- It’s wrong (Jordan’s store card)
- Dispute it. A legal right, and free
- It’s right (Jordan’s real $57)
- Ask nicely: a goodwill letter
- It’s wrong (Jordan’s store card)
- The credit bureau (and/or the company that reported it)
- It’s right (Jordan’s real $57)
- The company you were late with
- It’s wrong (Jordan’s store card)
- Fixed or deleted if they can’t prove it; results in writing
- It’s right (Jordan’s real $57)
- They may remove it as a courtesy. They don’t have to
If it’s wrong: dispute it (free)
Dispute an error
0 of 4 checkedIf it’s right: the goodwill letter
You can’t dispute your way out of a true late payment. The CFPB: “You generally cannot have negative information removed from your credit report if it is accurate.” SOURCE 22
What you can do is ask nicely. You write to the company you were late with, you own it, you explain, and you ask them to remove it as a courtesy.
When a goodwill letter has the best chance
0 of 3 checkedIt’s a favour, not a right. Experian: “Creditors don’t have to agree.” SOURCE 29
What happened to Jordan: the error was deleted, because it was wrong. The goodwill letter got a no: it was accurately reported, which it was. And it mattered less than he thought, because the error was gone, his card now reported 3% instead of 46%, and that one real late payment got a little older and lighter every month.
Free tool · Credit Score SimulatorWrite your dispute or goodwill letterCredit repair “hacks” and scams
You’ve probably seen it under posts about credit: someone replying “this guy fixed my score, DM him.” Here’s what they actually sell.
Three signs it’s a scam
0 of 3 checkedFederal Trade Commission · “Fixing Your Credit FAQs”
“It’s illegal for credit repair companies to lie about what they can do for you, or charge you before they help you.”
consumer.ftc.gov (opens in a new tab)| The hack | The truth |
|---|---|
| Dispute everything, even the true stuff, and hope they don’t answer in time | Accurate information comes back, and you’ve wasted months. Disputes are for errors |
| “Pay for delete”: offer a collector money to remove the account | They don’t have to agree, and nothing guarantees it. Newer models like FICO 9 ignore collections once they’re paid in full, so paying one off can matter more than the deal SOURCE 37 |
| Get a new credit number (a “CPN”) and start fresh | The FTC says a promise to create a new credit identity is a scam. Using a number that isn’t yours to apply for credit can mean fines or prison SOURCE 30 |
- The truth
- Accurate information comes back, and you’ve wasted months. Disputes are for errors
- The truth
- They don’t have to agree, and nothing guarantees it. Newer models like FICO 9 ignore collections once they’re paid in full, so paying one off can matter more than the deal SOURCE 37
- The truth
- The FTC says a promise to create a new credit identity is a scam. Using a number that isn’t yours to apply for credit can mean fines or prison SOURCE 30
Debt collectors: don’t ignore them; that usually makes it worse. Ask them to send the details: who the debt is from and how much. If it’s not yours, dispute it. SOURCE 31
Medical collections (US): under $500 aren’t put on your report at all, and paid medical collections are removed. SOURCE 38
- Illegal to charge before the work is done.
- No one can legally remove accurate, current information.
Everything the stranger offered, you can do yourself, for free. Every report, every dispute.
“I paid it off and my score went down?”
Maya paid off her car and lost 9 points. Her car loan was the only loan in her file. When it closed, her credit mix got smaller, and she had one less active account showing on-time payments. The score adjusts, a little.
Three more things that scare people
| What scares you | The truth |
|---|---|
| A high card balance | Most scores only look at the latest numbers reported. Pay it down and next month your score can bounce back. It doesn’t remember. SOURCE 34 |
| Applying for credit (a hard check) | For most people, one costs less than five points. It stays on a US report 2 years, but FICO counts it for about 1. Car-loan or mortgage shopping within a couple of weeks counts as one check. SOURCE 35 Canada: hard checks stay 3 years (Equifax), 6 years (TransUnion). SOURCE 23 |
| A credit freeze | Stops anyone opening credit in your name, it’s free, and it doesn’t affect your score at all. Worried about identity theft, or a family member using your name? Freeze your credit with each bureau. SOURCE 36 |
- The truth
- Most scores only look at the latest numbers reported. Pay it down and next month your score can bounce back. It doesn’t remember. SOURCE 34
- The truth
- Stops anyone opening credit in your name, it’s free, and it doesn’t affect your score at all. Worried about identity theft, or a family member using your name? Freeze your credit with each bureau. SOURCE 36
How to raise your credit score: fast vs slow
The honest version. No clickbait.
| Fast (a month or two) | Slow (only time) |
|---|---|
| Pay your card down before the statement closes | Months of on-time payments |
| Fix errors (a dispute takes about 30 days) | Your accounts getting older |
| Become an authorized user on a clean, old account (if it’s reported) | A late payment fading |
| Ask for a higher limit (ask if it’s a hard check first) | Your first score existing at all |
- Slow (only time)
- Months of on-time payments
- Slow (only time)
- Your accounts getting older
- Slow (only time)
- A late payment fading
- Slow (only time)
- Your first score existing at all
Same spending, totally different picture. Jordan’s fixes were mostly in the fast column. Dex’s whole problem was in the slow one. And nobody (no app, no stranger, no hack) can move the slow column faster.
What six months looked like
| Month | What happened |
|---|---|
| 1 | Dex: authorized user on Mom’s card (never touches it); his own card pays one phone bill, then pays itself off. Jordan: sends the dispute and the goodwill letter |
| 2 | The error is deleted. The goodwill letter: no |
| 4 | A score shows up for Dex |
| 5 | Maya’s 9 points are back |
| 6 | Credit check: 704. Standard deposit |
- What happened
- Dex: authorized user on Mom’s card (never touches it); his own card pays one phone bill, then pays itself off. Jordan: sends the dispute and the goodwill letter
- What happened
- The error is deleted. The goodwill letter: no
- What happened
- A score shows up for Dex
- What happened
- Maya’s 9 points are back
- What happened
- Credit check: 704. Standard deposit
Six months earlier, according to that screen, Dex didn’t exist. He didn’t borrow a dollar he couldn’t pay back. He didn’t pay a stranger. He just gave the system six months of proof.
Autopay. Small balances. No new applications. That’s what building credit really looks like. It’s boring, and boring wins.
What’s in the file
- 01Your report is your history. Your score is a grade from it. No score is blank, not bad.
- 02A first FICO score needs six months. In Canada, about three to five.
- 03You have many scores. Check your reports for free, every week in the US, and checking never hurts.
- 04Good is 670 and up in the US, 660 and up in Canada.
- 0565% of your score is two habits. Pay on time. Use little.
- 06From zero? Pick one or two doors, then wait.
- 07Wrong? Dispute it, for free. Right? Ask nicely, then let time work.
- 08Nobody can legally remove true information. Never pay upfront.
- 09Paying off a loan can dip your score. It’s still the right move.
Prefer video? Watch the story
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FAQ
How do I build credit with no credit history?
Use one account well. A first credit card or a secured card with one small bill on autopay, paid in full every month. Or become an authorized user on a family member’s old, clean card (if the issuer reports authorized users). A credit-builder loan or rent reporting can help too. Pick one or two, not all five, then wait.
How long does it take to get a credit score?
In the US, a FICO score needs at least one account open for six months or more, with something reported in the last six months. A VantageScore can often appear within about a month of an account showing up. In Canada, Equifax says most people become scoreable after about three months of reported credit, so four to five months in real life.
What is a good credit score?
In the US most scores run from 300 to 850. On the FICO scale, 670–739 is good, 740–799 very good and 800+ exceptional. In Canada scores go up to 900; Equifax Canada calls 660–724 good, 725–759 very good and 760+ excellent. TransUnion doesn’t give one number.
What credit score do I need to rent an apartment?
There’s no single magic number. Every landlord sets their own bar, and most also look at your income and rental history. In Ontario, the Human Rights Commission says a lack of rental or credit history should not count against you.
Why do my credit apps show different scores?
Each bureau has a slightly different copy of your file, and there are different scoring formulas (mainly FICO and VantageScore) in different versions. Free apps usually show a VantageScore; lenders often pull a FICO. All of them are real. If the file is right, they move together.
Does checking my own credit score lower it?
No. Checking your own report or score is a soft check and never affects your score. A hard check happens when you apply for credit.
How long does a late payment stay on my credit report?
In the US, most negative information, including late payments, stays up to seven years. In Canada, up to six years. Paying it afterwards doesn’t erase the record, but its effect fades: recent negative information counts more than older information.
Can I remove a late payment from my credit report?
If it’s wrong, yes: dispute it with the credit bureau for free, with proof. If it’s accurate, you generally can’t have it removed. You can send a goodwill letter asking the lender to remove it as a courtesy. It works best for a single mistake on an account in good standing, but they don’t have to agree.
Do credit repair companies work?
No one can legally remove information that is accurate and current. In the US it’s illegal for a credit repair company to charge you before it does the work, and ‘don’t contact the bureaus’ is a scam warning sign. Everything they offer, you can do yourself for free.
Why did my credit score drop after I paid off my car loan?
Closing your only loan can shrink your credit mix and leave one less active account showing on-time payments. The dip is usually small and temporary. It’s never a reason to keep paying interest on a loan.
Does a hard inquiry hurt my credit score?
For most people, one inquiry takes less than five points off a FICO score. It stays on a US report for two years, but FICO counts it for about one. Car loan or mortgage shopping within a short window counts as one inquiry. In Canada, hard inquiries stay three years with Equifax and six with TransUnion.
Does freezing my credit affect my score?
No. A credit freeze stops new credit being opened in your name and doesn’t affect your score at all. In the US it’s free with each bureau.
I’m new to Canada. How do I build credit?
You probably don’t have a Canadian credit history yet. Many Canadian banks offer newcomer credit cards. Start one of the doors in your first month, pay it in full on autopay, and ask whether your phone company reports bill payments.
Sources
Official and government data first. Every quote is word for word; follow the link to check it yourself.
Consumer Financial Protection Bureau · “What is the difference between a credit report and a credit score?”
“Your credit scores are calculated based on the information in your credit report.”
consumerfinance.gov (opens in a new tab)myFICO · “How Do I Go About Building My Credit History?”
“at least one account opened for six months or more”
myfico.com (opens in a new tab)Experian · “How Long Does It Take to Get a Credit Score After Opening an Account?”
“a VantageScore® credit score can often be calculated within a month of the account appearing on the credit report”
experian.com (opens in a new tab)Equifax Canada · “No Credit Score or Zero Credit Score: What It Means”
“Most people would become "scoreable" after about three months of using credit that is getting reported to Equifax.”
equifax.ca (opens in a new tab)Ontario Human Rights Commission · “Human rights for tenants (brochure)”
“A lack of rental or credit history should not count against you.”
ohrc.on.ca (opens in a new tab)Consumer Financial Protection Bureau · “Where can I get my credit scores?”
“Lenders also use different credit scores for different types of loans.”
consumerfinance.gov (opens in a new tab)Federal Trade Commission · “Free Credit Reports”
“check your credit report from each once a week for free at AnnualCreditReport.com”
consumer.ftc.gov (opens in a new tab)Financial Consumer Agency of Canada · “Getting your credit report and credit score”
“TransUnion: free if you live in Quebec or Ontario”
canada.ca (opens in a new tab)Consumer Financial Protection Bureau · “What happens when a mortgage lender checks my credit?”
“Checking your own credit does not affect your credit scores.”
consumerfinance.gov (opens in a new tab)Experian · “What Is a Good Credit Score?”
“a credit score of 670 to 739 is considered good”
experian.com (opens in a new tab)Equifax Canada · “What is a Good Credit Score in Canada?”
“credit scores from 660 to 724 are considered good”
equifax.ca (opens in a new tab)Experian · “What Credit Score Do You Need to Rent an Apartment?”
“There's no single credit score that's a magic number for an apartment application being approved.”
experian.com (opens in a new tab)myFICO · “What's in my FICO® Scores?”
“payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%)”
myfico.com (opens in a new tab)Equifax Canada · “How Are Credit Scores Calculated?”
“Payment history: ~35%”
equifax.ca (opens in a new tab)Financial Consumer Agency of Canada · “Improving your credit score”
“It’s the most important part of your credit score.”
canada.ca (opens in a new tab)Experian · “6 Ways to Establish Credit”
“can provide an instant benefit to your credit score”
experian.com (opens in a new tab)Experian · “Why Being an Authorized User May Not Help You Get Credit”
“it may not be enough for you to qualify for credit in your own name”
experian.com (opens in a new tab)Consumer Financial Protection Bureau · “What are some ways to start or rebuild a good credit history?”
“You put in an amount of cash, for example $500.”
consumerfinance.gov (opens in a new tab)Experian · “Does Renting an Apartment Build Credit?”
“fewer than 5% of tenants' rent payments are reported to the credit bureaus”
experian.com (opens in a new tab)Equifax Canada · “How to Build Credit in Canada”
“Many banks offer credit cards and other financial products specifically for newcomers.”
equifax.ca (opens in a new tab)Experian · “Does a One-Day-Late Payment Affect Your Credit Score?”
“payments overdue by fewer than 30 days aren't reported to the credit bureaus”
experian.com (opens in a new tab)Consumer Financial Protection Bureau · “Is it possible to remove accurate but negative information from my credit report?”
“You generally cannot have negative information removed from your credit report if it is accurate.”
consumerfinance.gov (opens in a new tab)Financial Consumer Agency of Canada · “How long information stays on your credit report”
“information about late or unpaid credit cards and loans: up to 6 years”
canada.ca (opens in a new tab)myFICO · “How Credit Actions Impact FICO® Scores.”
“Both individuals see a substantial loss of points when they fall 30 days behind on a payment”
myfico.com (opens in a new tab)Consumer Financial Protection Bureau · “How to rebuild your credit”
“In general, recent negative information has more of an effect on your credit score than older information.”
consumerfinance.gov (opens in a new tab)Federal Trade Commission · “Disputing Errors on Your Credit Reports”
“the credit bureau has 30 days to investigate it”
consumer.ftc.gov (opens in a new tab)Consumer Financial Protection Bureau · “How do I dispute an error on my credit report?”
“Furnishers generally must investigate and respond to your dispute within 30 days of when they receive the dispute.”
consumerfinance.gov (opens in a new tab)Equifax Canada · “How to dispute information on your Equifax credit report”
“We’ll process your dispute in about 15-20 days for online submissions”
equifax.ca (opens in a new tab)Experian · “What Is a Goodwill Letter and How Do You Write One?”
“It's most effective when you've made a single mistake in the past”
experian.com (opens in a new tab)Federal Trade Commission · “Fixing Your Credit FAQs”
“It’s illegal for credit repair companies to lie about what they can do for you, or charge you before they help you.”
consumer.ftc.gov (opens in a new tab)Consumer Financial Protection Bureau · “What should I do when a debt collector contacts me?”
“avoiding or ignoring their call usually won’t make them go away”
consumerfinance.gov (opens in a new tab)Financial Consumer Agency of Canada · “Consumer Alert: What you need to know when getting help to pay off debt or repair your credit”
“It’s impossible to change or erase information that’s part of your credit history, unless information is inaccurate.”
canada.ca (opens in a new tab)Government of Ontario · “Credit reports”
“accept payment or charge a fee until their services lead to a real improvement”
ontario.ca (opens in a new tab)Experian · “What Is a Credit Utilization Rate?”
“Only the most recently reported numbers affect most credit scores.”
experian.com (opens in a new tab)myFICO · “Does Checking Your Credit Score Lower it?”
“For most people, one additional credit inquiry will take less than five points off their FICO Scores.”
myfico.com (opens in a new tab)Consumer Financial Protection Bureau · “What is a credit freeze or security freeze on my credit report?”
“Security freezes do not impact your credit scores in any way whatsoever.”
consumerfinance.gov (opens in a new tab)FICO · “FICO® Score 9 Now Available to Consumers at myFICO.com”
“First, any collection account that is paid in full is disregarded.”
fico.com (opens in a new tab)Equifax, Experian and TransUnion · “Equifax, Experian and TransUnion Remove Medical Collections Debt Under $500 From U.S. Credit Reports”
“medical collection debt with an initial reported balance of under $500 has been removed from U.S. consumer credit reports”
newsroom.transunion.com (opens in a new tab)Consumer Financial Protection Bureau · “Technical correction and update to the CFPB’s credit invisibles estimate”
“The estimated share of credit invisibles in December 2020 was 2.7 percent (7.0 million consumers).”
files.consumerfinance.gov (opens in a new tab)FICO · “FICO® Score Credit Insights Report: Average FICO Score Dips to 714”
“showing the average U.S. FICO Score declined to 714”
investors.fico.com (opens in a new tab)Experian · “What Is the Average Credit Score in the U.S.?”
Average FICO® Score by age, 2024 → 2025: “Generation Z (18-28) 681 678 -3 points”
The same page gives the overall US average as 713 (Experian data); our 714 is FICO’s own figure (source 40).
experian.com (opens in a new tab)TransUnion Canada · “Frequently Asked Credit Questions”
“Investigations are typically concluded within 30 days of the date we receive your request.”
transunion.ca (opens in a new tab)myFICO · “Authorized users and FICO Scores”
“In recent versions of the score, authorized user accounts have less impact to your FICO Score than primary accounts.”
myfico.com (opens in a new tab)TransUnion Canada · “What is a Good Credit Score”
“A “good” credit score is one that helps you achieve your goals.”
transunion.ca (opens in a new tab)Financial Consumer Agency of Canada · “Understanding Your Credit Report and Credit Score” (hosted by Quebec’s Office de la protection du consommateur)
“if you have a credit card account that you paid on time, it will be reported as "R1."” / “Late payment: 31–59 days late” / “The worst rating you can receive is 9. It usually means the lender has written your account off or sent it to a collection agency.”
R ratings: 1 is the best, 2 is 31–59 days late, 9 is the worst.
cdn.opc.gouv.qc.ca (opens in a new tab)Consumer Financial Protection Bureau · “What is the difference between a credit report and a credit score?”
“Your credit scores are calculated based on the information in your credit report.”
consumerfinance.gov (opens in a new tab)myFICO · “How Do I Go About Building My Credit History?”
“at least one account opened for six months or more”
myfico.com (opens in a new tab)Experian · “How Long Does It Take to Get a Credit Score After Opening an Account?”
“a VantageScore® credit score can often be calculated within a month of the account appearing on the credit report”
experian.com (opens in a new tab)Equifax Canada · “No Credit Score or Zero Credit Score: What It Means”
“Most people would become "scoreable" after about three months of using credit that is getting reported to Equifax.”
equifax.ca (opens in a new tab)Show all 45 sources
Ontario Human Rights Commission · “Human rights for tenants (brochure)”
“A lack of rental or credit history should not count against you.”
ohrc.on.ca (opens in a new tab)Consumer Financial Protection Bureau · “Where can I get my credit scores?”
“Lenders also use different credit scores for different types of loans.”
consumerfinance.gov (opens in a new tab)Federal Trade Commission · “Free Credit Reports”
“check your credit report from each once a week for free at AnnualCreditReport.com”
consumer.ftc.gov (opens in a new tab)Financial Consumer Agency of Canada · “Getting your credit report and credit score”
“TransUnion: free if you live in Quebec or Ontario”
canada.ca (opens in a new tab)Consumer Financial Protection Bureau · “What happens when a mortgage lender checks my credit?”
“Checking your own credit does not affect your credit scores.”
consumerfinance.gov (opens in a new tab)Experian · “What Is a Good Credit Score?”
“a credit score of 670 to 739 is considered good”
experian.com (opens in a new tab)Equifax Canada · “What is a Good Credit Score in Canada?”
“credit scores from 660 to 724 are considered good”
equifax.ca (opens in a new tab)Experian · “What Credit Score Do You Need to Rent an Apartment?”
“There's no single credit score that's a magic number for an apartment application being approved.”
experian.com (opens in a new tab)myFICO · “What's in my FICO® Scores?”
“payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%)”
myfico.com (opens in a new tab)Equifax Canada · “How Are Credit Scores Calculated?”
“Payment history: ~35%”
equifax.ca (opens in a new tab)Financial Consumer Agency of Canada · “Improving your credit score”
“It’s the most important part of your credit score.”
canada.ca (opens in a new tab)Experian · “6 Ways to Establish Credit”
“can provide an instant benefit to your credit score”
experian.com (opens in a new tab)Experian · “Why Being an Authorized User May Not Help You Get Credit”
“it may not be enough for you to qualify for credit in your own name”
experian.com (opens in a new tab)Consumer Financial Protection Bureau · “What are some ways to start or rebuild a good credit history?”
“You put in an amount of cash, for example $500.”
consumerfinance.gov (opens in a new tab)Experian · “Does Renting an Apartment Build Credit?”
“fewer than 5% of tenants' rent payments are reported to the credit bureaus”
experian.com (opens in a new tab)Equifax Canada · “How to Build Credit in Canada”
“Many banks offer credit cards and other financial products specifically for newcomers.”
equifax.ca (opens in a new tab)Experian · “Does a One-Day-Late Payment Affect Your Credit Score?”
“payments overdue by fewer than 30 days aren't reported to the credit bureaus”
experian.com (opens in a new tab)Consumer Financial Protection Bureau · “Is it possible to remove accurate but negative information from my credit report?”
“You generally cannot have negative information removed from your credit report if it is accurate.”
consumerfinance.gov (opens in a new tab)Financial Consumer Agency of Canada · “How long information stays on your credit report”
“information about late or unpaid credit cards and loans: up to 6 years”
canada.ca (opens in a new tab)myFICO · “How Credit Actions Impact FICO® Scores.”
“Both individuals see a substantial loss of points when they fall 30 days behind on a payment”
myfico.com (opens in a new tab)Consumer Financial Protection Bureau · “How to rebuild your credit”
“In general, recent negative information has more of an effect on your credit score than older information.”
consumerfinance.gov (opens in a new tab)Federal Trade Commission · “Disputing Errors on Your Credit Reports”
“the credit bureau has 30 days to investigate it”
consumer.ftc.gov (opens in a new tab)Consumer Financial Protection Bureau · “How do I dispute an error on my credit report?”
“Furnishers generally must investigate and respond to your dispute within 30 days of when they receive the dispute.”
consumerfinance.gov (opens in a new tab)Equifax Canada · “How to dispute information on your Equifax credit report”
“We’ll process your dispute in about 15-20 days for online submissions”
equifax.ca (opens in a new tab)Experian · “What Is a Goodwill Letter and How Do You Write One?”
“It's most effective when you've made a single mistake in the past”
experian.com (opens in a new tab)Federal Trade Commission · “Fixing Your Credit FAQs”
“It’s illegal for credit repair companies to lie about what they can do for you, or charge you before they help you.”
consumer.ftc.gov (opens in a new tab)Consumer Financial Protection Bureau · “What should I do when a debt collector contacts me?”
“avoiding or ignoring their call usually won’t make them go away”
consumerfinance.gov (opens in a new tab)Financial Consumer Agency of Canada · “Consumer Alert: What you need to know when getting help to pay off debt or repair your credit”
“It’s impossible to change or erase information that’s part of your credit history, unless information is inaccurate.”
canada.ca (opens in a new tab)Government of Ontario · “Credit reports”
“accept payment or charge a fee until their services lead to a real improvement”
ontario.ca (opens in a new tab)Experian · “What Is a Credit Utilization Rate?”
“Only the most recently reported numbers affect most credit scores.”
experian.com (opens in a new tab)myFICO · “Does Checking Your Credit Score Lower it?”
“For most people, one additional credit inquiry will take less than five points off their FICO Scores.”
myfico.com (opens in a new tab)Consumer Financial Protection Bureau · “What is a credit freeze or security freeze on my credit report?”
“Security freezes do not impact your credit scores in any way whatsoever.”
consumerfinance.gov (opens in a new tab)FICO · “FICO® Score 9 Now Available to Consumers at myFICO.com”
“First, any collection account that is paid in full is disregarded.”
fico.com (opens in a new tab)Equifax, Experian and TransUnion · “Equifax, Experian and TransUnion Remove Medical Collections Debt Under $500 From U.S. Credit Reports”
“medical collection debt with an initial reported balance of under $500 has been removed from U.S. consumer credit reports”
newsroom.transunion.com (opens in a new tab)Consumer Financial Protection Bureau · “Technical correction and update to the CFPB’s credit invisibles estimate”
“The estimated share of credit invisibles in December 2020 was 2.7 percent (7.0 million consumers).”
files.consumerfinance.gov (opens in a new tab)FICO · “FICO® Score Credit Insights Report: Average FICO Score Dips to 714”
“showing the average U.S. FICO Score declined to 714”
investors.fico.com (opens in a new tab)Experian · “What Is the Average Credit Score in the U.S.?”
Average FICO® Score by age, 2024 → 2025: “Generation Z (18-28) 681 678 -3 points”
The same page gives the overall US average as 713 (Experian data); our 714 is FICO’s own figure (source 40).
experian.com (opens in a new tab)TransUnion Canada · “Frequently Asked Credit Questions”
“Investigations are typically concluded within 30 days of the date we receive your request.”
transunion.ca (opens in a new tab)myFICO · “Authorized users and FICO Scores”
“In recent versions of the score, authorized user accounts have less impact to your FICO Score than primary accounts.”
myfico.com (opens in a new tab)TransUnion Canada · “What is a Good Credit Score”
“A “good” credit score is one that helps you achieve your goals.”
transunion.ca (opens in a new tab)Financial Consumer Agency of Canada · “Understanding Your Credit Report and Credit Score” (hosted by Quebec’s Office de la protection du consommateur)
“if you have a credit card account that you paid on time, it will be reported as "R1."” / “Late payment: 31–59 days late” / “The worst rating you can receive is 9. It usually means the lender has written your account off or sent it to a collection agency.”
R ratings: 1 is the best, 2 is 31–59 days late, 9 is the worst.
cdn.opc.gouv.qc.ca (opens in a new tab)