What Credit Score Do You Start With? The Ultimate Guide to Building Credit

Credit scores don’t begin at zero. They don’t start at perfect, either. If you’re new to credit, your starting credit score may depend on how quickly you begin building a credit history.

Lenders consider different factors, such as your first credit card, your payment history, and how you manage available credit in the early years. Your choices shape your score from day one.

In this guide, you’ll learn how credit bureaus calculate scores for new workers, how to build credit fast, and why on-time payments matter. Taking small steps today creates strong credit for the future.

How Credit Scores Work in Canada: What You Need to Know

Your credit score is a number that tells lenders how you handle money. It comes from your credit history, how you borrow, and how you repay. In Canada, three credit bureaus, Equifax, Experian, and TransUnion, track your credit activity.

They collect data from banks, credit card companies, and other creditors. Then, they use credit scoring models like FICO scores and VantageScore to calculate your score.

Credit Score Ranges

Canadian credit score range from 300 to 900:

• 300-579 - Poor credit (hard to qualify for loans, high interest rates)
• 580-669 - Fair (may still struggle with approvals)
• 670-739 - Good credit score (most lenders approve loans)
• 740-799 - Very good (low interest, better options)
• 800-900 - Excellent credit (best rates, easiest approvals)

How To Build Your First Credit Score and What Affects It

If you’re new to credit, you won’t have an excellent credit score right away. You need to prove your creditworthiness by making on-time payments, keeping credit utilization low, and managing different types of debt.

Here are the biggest factors shaping your credit score:

Opening a Secured Credit Card

A secured credit card is one of the easiest ways to build credit from scratch. Unlike a traditional credit card, it requires a deposit, which acts as your credit limit. Your credit card issuer reports your spending and payment habits to credit bureaus, helping you establish a credit history.

Best practices:

• Use the card for small purchases.
• Keep your credit utilization ratio below 30%
• Always make on-time payments to show reliability.

A secured card is a starting point. Over time, responsible use qualifies you for an unsecured credit card with a higher limit.

Becoming an Authorized User

If a family member has a well-managed credit account, they can add you as an authorized user. This lets you “borrow” your credit file before you even open your first credit card.

Pros:

• You get the benefits of their on-time payments and credit limit.
• It builds history without needing a credit check.

Cons:

• If they miss a payment, your score will be affected, too.
• Not all credit card companies report authorized users to credit bureaus.

Making Payments on Time

Your payment history makes up 35% of your credit score—the biggest factor. A single missed payment can drop your score. A strong payment history tells lenders you’re a reliable borrower.

How to stay on track:

• Set up automatic monthly payments for at least the minimum payment.
• Pay off credit cards, student loans, and personal loans before the due date.
• Avoid late payments, which stay on your credit report for years.

Keeping Credit Utilization Low

Your credit utilization ratio compares how much credit you’re using to your total available credit. High usage signals risk. Keeping it under 30% helps maintain a good credit score.

Example:

If your credit limit is $1,000, try not to carry a balance above $300. Even if you pay them off, high balances can hurt your creditworthiness.

Avoiding Too Many Credit Applications

Each credit application triggers a hard inquiry, which can lower your score. Too many in a short time makes you look desperate for credit.

How to apply wisely:

• Only apply when needed.
• Space out applications to avoid multiple hard inquiries.
• Check if you pre-qualify before applying for new credit to reduce the risk.

One or two credit inquiries won’t do much harm. But if you apply for multiple credit products at once, expect a drop in your credit score range.

Using Different Types of Credit

Lenders want to see a mix of credit accounts. A good balance between credit cards, installment loans (like a car loan or student loans), and lines of credit shows financial responsibility.

Why it matters:

• A diverse credit mix proves you can handle different types of debt.
• It boosts your score over time if managed well.

If you only have a credit card, consider a credit-builder loan to add variety to your credit file.

The Length of Your Credit History

The older your credit accounts, the better. This is why opening your first credit card helps.

Ways to build a strong history:

• Keep your oldest bank accounts open. Closing them shortens your credit file.
• If possible, become an authorized user on a parent’s long-standing account.

The longer you manage credit responsibly, the higher your average credit score climbs.

FAQs About Where Credit Score Starts

Can checking your credit score lower it?

No. Checking your own credit score is a soft inquiry and won’t affect your score. However, when a lender runs a hard inquiry for a credit application, it can cause a slight drop.

How long do late payments stay on a credit report?

A missed payment can stay on your credit history for up to six years. Making on-time payments moving forward helps rebuild your score over time.

Do you need a credit card to build credit?

No. While a first credit card helps, you can also build credit with a credit-builder loan, a secured card, or even by making consistent payments on a personal finance loan or car loan.

Does closing your credit card hurt your score?

Yes, it can. Closing a card reduces your available credit, which increases your credit utilization ratio. It also shortens the length of your credit history, which can lower your score.

Can you get a loan without a credit check?

Yes. Some lenders offer personal loans that don’t require a credit check. These can help if you have bad credit or no history, but they may come with higher interest rates.

Apply for a Loan Today Without Any Credit Checks

Building credit takes time. But when you need money now, waiting is not an option. Unexpected bills, a broken cell phone, or daily expenses don’t stop because your credit history is still growing.

A personal loan gives you quick access to cash without the hassle of a credit check. No long approval process. No delays. Just fast funds when you need them.

Avoid late payments, cover urgent costs, or get through the month without stressing over unavailable credit. Apply for a quick loan today!