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🇨🇦 A Canadian’s Guide to Increasing & Managing Your Credit Score

✅ Why Your Credit Score Matters


Your credit score in Canada (ranging from 300 to 900) is a key number that lenders use to decide whether to approve you for credit—and at what interest rate. A higher score can mean better loan approvals, lower interest rates, and even savings on car insurance.


🧩 The 5 Key Factors That Impact Your Credit Score


  1. Payment History (35%)
    📅 Always pay bills on time. Even one missed payment can damage your score.
  2. Credit Utilization (30%)
    💳 Keep your balances below 30% of your limit on credit cards and lines of credit.
  3. Length of Credit History (15%)
    ⌛ The longer your accounts are open and in good standing, the better.
  4. Types of Credit (10%)
    🏦 A mix of credit (credit cards, loans, etc.) can be a good sign to lenders.
  5. New Credit Inquiries (10%)
    🕵️ Applying for too many loans or cards in a short time can hurt your score.


🔧 How to Improve Your Credit Score


1. Pay All Bills on Time – Even Minimums

Set up automatic payments to never miss a due date.

2. Check Your Credit Report for Free

Use Equifax Canada or TransUnion Canada to spot errors or fraudulent activity.

3. Keep Credit Card Balances Low

Ideally under 30% of your available limit.

4. Don’t Close Old Accounts

Older credit accounts add to your credit history length.

5. Limit New Credit Applications

Space out credit applications to avoid frequent “hard” inquiries.

6. Diversify Your Credit Types

Having a mix (like an installment loan + credit card) can boost your profile.


💡 Smart Habits for Long-Term Credit Health


  • Review your credit report twice per year.
  • Pay your rent, cellphone, and utility bills on time—some may now report to credit bureaus.
  • Use services like Borrowell or Credit Karma Canada to monitor your score monthly.
  • Negotiate better interest rates once your score improves.


🚗 Got a Car Loan? Here's How It Can Help or Hurt Your Credit


Car loans are installment loans. Paying them consistently helps build your score over time—but if you’re overpaying in interest, your budget might be suffering.


This leads us to one of the most overlooked opportunities for Canadians to save money AND improve their credit…


🔄 Refinance Your Car Loan & Boost Your Credit with CarRefinancing.ca


✅ Lower your interest rate
✅ Reduce your monthly payment
✅ Pay off your vehicle faster
✅ Improve your credit by freeing up cash and lowering debt utilization


📉 Many Canadians are locked into 7–10%+ car loans that no longer reflect their current credit score. If your score has gone up since you bought your car, or if you were approved with bad credit originally, refinancing could save you thousands.


💡 Refinance in Minutes with CarRefinancing.ca


You can get matched instantly with lenders across Canada who are actively refinancing car loans—no dealership visits, no pressure.

Refinancing is available for:


  • Cars
  • Trucks
  • SUVs


🎯 Final Thoughts


Improving your credit score is like building muscle: consistent, smart habits lead to long-term gains. Refinancing your vehicle through a service like CarRefinancing.ca can give you a head start by freeing up your monthly budget and putting your improved credit to work.


📌 Summary Checklist:


  • Check your credit report
  • Pay bills on time
  • Keep balances low
  • Don’t apply for too much credit
  • Refinance your car loan at CarRefinancing.ca if you’re overpaying


Let your credit work smarter—and let CarRefinancing.ca help get you there faster 🚀

Car refinancing doesn't have to be scary.

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