How to Go From Bad Credit to 700+ in Canada (Realistic Timeline + Actionable Steps)
If you’re sitting with bad credit in Canada (typically below 575), getting to a 700+ score can feel impossible — but it’s absolutely doable. Thousands of Canadians rebuild their credit every year, and many reach the 700+ tier within 12–24 months with the right strategy.
Below is a realistic, step-by-step plan based on what lenders, credit bureaus (Equifax & TransUnion), and real Canadian borrowers have shown works.
1. Pull Your Credit Report (Free) and Identify the Damage
Before improving anything, you need to understand why your score is low. Check both bureaus:
- Credit Karma – free TransUnion monitoring
- Equifax.ca / TransUnion.ca – full reports
Look for:
- Late payments
- Collections
- High utilization
- Old unpaid accounts
- Errors (yes — they happen a lot)
Fixing one major error or collection can jump your score 30–100 points overnight.
2. Pay Down Revolving Utilization (This Moves Your Score FAST)
Credit utilization = your credit card balance divided by your limit.
To hit a 700+ score, aim to stay under 30% utilization, ideally under 10%.
Example:
- If your card limit is $1,000
- Bad: $700+
- Okay: $300
- Excellent: $0–100
High utilization is one of the top killers of a credit score in Canada. Fixing this alone can boost a score by 30–80 points in 1–2 months.
3. Set Up Automatic Minimum Payments
Most bad credit comes from missed payments. Even one late payment stays on your report for 6 years.
Set up auto-pay for all bills:
- Credit cards
- Phone
- Utilities
- Loan payments
- Car insurance
This prevents new damage while you rebuild.
4. Get a “Starter” Credit Product and Use It Properly
If your credit is damaged, you may not qualify for a regular credit card — but you still need an active tradeline to rebuild.
These options work extremely well:
- Secured credit card (Capital One, Neo, Home Trust) — you put down a deposit and it reports monthly.
- Credit-builder loan (Refresh Financial, Spring Financial)
- A small installment loan from reputable lenders
Rule: keep your balance low, pay on time, and use it as a tool — not spending money.
5. Settle or Pay Off Collections Strategically
If you have collections:
- Call and negotiate
- Ask for “pay for delete” (not guaranteed but worth trying)
- Settling still helps your profile
Even a settled collection looks far better than an active one.
6. Diversify Your Credit Mix (Once You Stabilize)
Credit bureaus reward you for having:
- 1 revolving account (credit card)
- 1 installment account (loan)
You don’t need more. Just these two help you reach the 700+ range faster.
7. Don’t Apply for Too Many Products
Each hard inquiry can drop your score 5–15 points. Space out applications and only apply when you have a strong chance of approval.
8. Track Your Score Monthly — Not Daily
Credit scores don’t change day-to-day. Checking monthly helps you see real patterns and avoid stress.
How Long Does It Realistically Take to Reach 700+?
If you currently have:
- 550 or below: ~18–24 months
- 560–600: ~12–18 months
- 600–650: ~6–12 months
The timeline depends on:
- How bad the negative items are
- Whether you have collections
- Consistency of payments
- How much utilization you reduce
You can absolutely rebuild to 700+ in under 2 years with consistent effort.
Realistic Action Plan (Month-by-Month)
Month 1
- Pull reports
- Fix errors
- Lower utilization
- Set up automatic payments
Months 2–3
- Get secured card or credit-builder loan
- Start tracking monthly
Months 4–6
- Pay all bills on time
- Keep utilization under 30%
- Negotiate collections
Months 6–12
- Add installment loan if needed
- Maintain perfect payment history
- Score typically hits 630–680
Months 12–24
- Keep doing what works
- Score typically reaches 700–740
Final Thoughts from Smarter Loans
Rebuilding credit in Canada is 100% achievable, even after major setbacks. Whether you’re preparing for a mortgage, business funding, or a personal loan, a strong credit profile gives you better terms and more options.
If you ever need guidance on finding reputable lenders across Canada — especially ones that work with fair or rebuilding credit — Smarter Loans is here to help.
Written by:
Amy Orr is a professional writer and editor with over 10 years of experience in the Canadian, U.S. and U.K. financial markets. She has written for numerous publications on topics as diverse as economic literacy, corporate finance, and technical analysis of numerical data. Prior to transitioning to full-time writing, she worked in the hedge fund sector. Her academic background is astrophysics, and she has a Masters in Finance from the University of Edinburgh Business School.
