Credit score: Winning strategies for 2026

Updated February 6, 2026

So, before you begin optimizing your credit score, it's essential to understand where you currently stand. This knowledge will serve as your starting point and allow you to measure your progress over time.

What is a credit score?

A credit score is a numerical score that represents your financial reliability in the eyes of lenders. For example, in Canada, this score generally ranges from 300 to 900. 900 is the best possible score. Your credit score is calculated by credit agencies, mainly Equifax and TransUnion, based on the information contained in your credit file.

1. Timely payment of bills

Timely payment of your bills is the cornerstone of a good credit score. It's the most important factor in calculating your score, accounting for about 35% of its weight. Payments made on time have a considerable impact on your credit score for several reasons:

• Demonstration of reliability: Punctual payments show lenders that you are a reliable and responsible borrower.
• Positive history: Each on-time payment contributes to building a positive credit history, which is particularly important if you have a relatively young credit file.
• Avoiding penalties: Late payments can result in additional fees and higher interest rates, in addition to damaging your score.
• Long-term impact: Late payments can remain on your credit file for up to 7 years, affecting your credit score over a long period.

2. Reducing credit utilization rate

The credit utilization rate, which represents the percentage of your available credit that you're using, is a crucial factor in calculating your credit score. To achieve this, several strategies are available to you: make multiple payments throughout the month, request an increase in your credit limits (without increasing your spending), and use your credit cards strategically by spreading out your expenses.

3. Diversifying your credit mix

Diversifying your credit portfolio is an effective strategy for improving your credit score. This diversity demonstrates to lenders your ability to manage different forms of borrowing responsibly. However, it's crucial to open new accounts strategically and only when necessary, as each new application can lead to a slight temporary decrease in your score.

4. Maintaining old credit accounts

Older accounts are valuable because they demonstrate a long history of credit management and increase the average length of your credit history. To keep these accounts active, use them regularly for small purchases and set up automatic payments to avoid forgetting.

However, carefully evaluate the annual fees associated with each card and the benefits it offers. In general, it's preferable to avoid closing your oldest accounts or those with high credit limits, unless the fees are prohibitive or if you have difficulty controlling your spending.

5. Correcting Errors in Your Credit Report

Verifying and correcting errors in your credit report are crucial steps. Errors are more common than you might think and can have a significant negative impact on your score. If you spot errors, contest them immediately with the credit bureaus and the relevant creditors.

Express Cash offers loan solutions tailored to your situation, with a simplified approval process and funds available quickly, allowing you to manage your financial needs while continuing to work on your credit score. Contact us!

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