Last updated on December 17, 2025.

Your credit score is more than just a number—it’s a key that can unlock better borrowing rates, easier approvals, and more financial flexibility. As we head into 2026, keeping your score strong matters even more, especially with higher interest rates and a competitive housing market. The good news? Small, consistent steps can make a big difference, and this guide will show you how to boost your score with confidence.

Patty Hopper, Mortgage Development Manager at Vancity, sees many first time home buyers who are eager to get into the market. “I guide them through the process,” she says. “One of the first things I do is a credit check to see what’s happening there. And because I’ve been doing this for so long, I know exactly what they need to do to boost it. If my advice is taken, they’ll see huge improvement.” If your score needs a lift, Hopper’s got lots of great suggestions – from always paying your bills on time to reducing your credit card debt as much as possible. “Keep an eye on your credit score through Equifax,” she says. “And set up pre-authorized bill payments so that they come out of your account on time every month.”

Understand how your credit score stacks up

Your credit score is a number ranging from 300 to 900 that represents your creditworthiness, and it’s based on your credit history. It’s calculated based on factors such as:

• Payment History: Whether you pay your bills on time.
• Credit Utilization: The amount of credit you’re using compared to your credit limit.
• Length of Credit History: How long your credit accounts have been open.
• Credit Mix: The variety of credit types you have (e.g., credit cards, loans).

The higher your score, the better your credit health.

Your score tells your lender how well you manage debt. Are you able to make payments on time? How much debt are you currently carrying? Factors like this can paint a risk profile for your lender, and become a key indicator in determining how much you’ll qualify for, and at what rate. 

“We put a lot of weight on a credit score as it shows us historical behaviors, which includes their past behavior in repaying loans, managing credit cards, and handling other forms of debt. A higher score suggests that the person has a history of managing credit responsibly and is more likely to repay future debts.” Hopper says, “In addition to this, we would look at, is this individual a saver, employment status, and ultimately the character of the applicant.

Through the years of working with First time home buyers a strong credit score has been learned from family and good financial guidance.”

5 steps to boost your credit score

If your credit score is above 670, it’s considered a good score. If your credit score is below 620, your mortgage specialist will be able to help guide you in the right direction to improving your credit. 

Here are some concrete steps you can take:

• Pay your bills on time: Timely payment of bills is critical. Set up pre-authorized payments to ensure you never miss a due date, especially for telecommunication bills, as these are often reported to credit bureaus.
• Reduce your credit card debt: Aim to pay down your existing credit card debt. Maintaining a low balance relative to your credit limit can positively impact your credit score. New fintech apps in Canada, like Borrowell, help track utilization daily and send reminders when you’re close to your limit
• Monitor your credit score: Regularly check your credit score through services like Equifax. Tracking your score helps you stay informed about your financial health and encourages proactive improvements.
• Limit credit card applications: Avoid applying for multiple credit cards. One well-managed card is sufficient to build a strong credit history. If necessary, consider a secured credit card to establish or rebuild your credit.
• Leverage authorized user status: If possible, become an authorized user on a parent’s credit card. This can help you build credit history without taking on new debt yourself.

Taking action on building up your score also instills confidence and healthy financial habits, which you can take with you as you step into the world of home ownership.

Get pre-approved for a mortgage

Once you’ve got your credit score in the right range, you’re on your way to getting pre-approved for a mortgage rate. That means the bank will hold a certain rate for you for a specified amount of time while you look for a home (typically this is 90 days). That way, when you find something you’d like to make an offer on, you’ve already got the financial backing in place, and can move quickly. 

Taking action on building up your score also instills confidence and healthy financial habits, which you can take with you as you step into the world of home ownership.

In fact, maintaining a strong relationship with your financial institution throughout the home-buying process can make all the difference in getting the place you want. 

The journey to buying your first home is filled with emotional and financial challenges, but it’s also one of the most exciting milestones in your life. When you forge a connection with your banker or mortgage specialist, you’re not just securing financing; you’re gaining a partner who will support you through various financial decisions, from buying your first home to managing unexpected expenses. 

“A stable relationship with your financial institution ensures you have support when unexpected financial needs arise, like needing to buy a minivan for a growing family or paying down your mortgage aggressively with a windfall,” Hopper says. “It takes a village to help,” she adds. “I love being a part of that little village.” If you’re considering buying your first home, contact one of our mortgage specialists for personalized guidance and support. We’d love to help.

Improving your credit score doesn’t happen overnight, but every on‑time payment, every reduced balance, and every smart financial choice adds up. By starting now, you’ll set yourself up for lower borrowing costs and more opportunities in the year ahead. And remember—you don’t have to do it alone. Vancity is here with tools, advice, and support to help you strengthen your financial future, one step at a time.