Canadians know credit scores but struggle to improve

Money Mart has published a national survey on how Canadians understand and improve their credit scores. The findings show a gap between reported knowledge of credit and action to strengthen it.

The survey found that 84% of Canadians say they understand what affects their credit score, yet 47% reported at least one barrier to improving it. Fewer than half, 45%, said they are actively taking steps to build or improve their credit, while 29% said the process feels difficult.

The results point to a divide between awareness and follow-through. Among respondents, 22% said they know what to do but have not followed through, 18% said they want to improve their credit but do not know where to start, and 11% said they had tried in the past and stopped.

Canadians who sought guidance often relied on informal sources. Some 37% turned to friends or family, while 34% consulted a financial advisor or credit counsellor and 34% used an online search or website.

At the same time, the data suggests demand for more formal support. Nearly three-quarters, 72%, said they would be open to seeking help in future, with 44% naming financial advisors or credit counsellors and 43% naming banks and credit unions as preferred sources.

Perceived barriers

A majority of respondents said the credit system favours people who are already financially secure. Overall, 62% said it is designed for people who are already financially stable, rising to 71% among Gen Z and 70% among Millennials.

Lower-income households and younger adults reported the greatest obstacles. The share reporting at least one barrier climbed to 66% among households earning under $50,000 and 68% among Gen Z.

The most common barrier was not prioritising credit improvement, cited by 39% of those reporting obstacles. Another 34% said they felt unable to take on more credit or debt.

The findings also linked credit concerns to delayed life decisions. Some 22% said they had delayed buying a home because they were worried their credit would not qualify, including 36% of Gen Z, 28% of Millennials, 23% of Gen X and 9% of Boomers.

Another 18% said they had delayed vehicle financing, including 31% of Gen Z. A further 14% said they had delayed starting a business, 14% had put off paying for everyday expenses, and 12% had delayed renting an apartment, with younger groups reporting the highest rates in each category.

Financial strain

The survey also sketched a broader picture of household finances. Only 12% of Canadians described their situation as thriving, while 28% said they were managing and 17% said they were struggling or in survival mode.

Money Mart paired the survey results with internal customer data to argue that access to products that report repayments to credit bureaus can help some borrowers improve their standing. In an analysis of customers in Alberta and Manitoba over an 18-month period, 91% of those who started with credit scores below 560 and made on-time payments improved their score, with an average increase of 68 points.

The analysis focused on customers who moved from payday loans to instalment loans that support credit building through repayment reporting. Thousands of customers made that transition over the past six months, according to Money Mart.

Peter Kalen, chief executive officer of Money Mart, commented on the survey findings.

"Many Canadians understand what affects their credit, but turning that knowledge into progress can be challenging," Kalen said.

"Our findings suggest the issue isn't simply awareness, it's having access to practical options that help people build a positive credit history over time. That's why we help customers explore solutions that fit their circumstances through tools like our prequalification process, which allows them to see available options and identify the product that best meets their needs," he added.

Money Mart said its prequalification process assesses customers across its lending products without affecting their credit score. It aims to identify the lowest-rate option available to eligible borrowers and continues to offer in-branch support at more than 360 locations across Canada, including multilingual service in many communities.

The company added that its mobile app was relaunched last year to include same-day funding options, real-time approvals and round-the-clock account management.

The survey was based on responses from 1,504 Canadian adults from the Angus Reid Forum and was conducted online in English and French.