Canadians Understand Credit Factors, But Report Difficulty Improving Credit Score

A national survey released by Money Mart shows a significant gap between Canadians' understanding of credit and their ability to act on it. While 84 percent of respondents stated they understand what impacts their credit score, almost half (47%) report encountering obstacles to improvement. Only 45 percent are actively working to build or improve their credit, and 29 percent find the process difficult.

The findings underscore how financial barriers, fragmented advice, and a credit system perceived by many as favoring the financially stable shape Canadians' engagement with their credit. The survey suggests the challenge is less about awareness and more about access, confidence, and clear next steps. Many, particularly younger adults and lower-income households, find credit building difficult when unsure where to start or believing they lack access to suitable products.

Canadians are seeking guidance from a variety of sources, including friends and family (37%), financial advisors or credit counselors (34%), and online searches (34%). Despite this, there is a strong demand for more support, with 72 percent open to seeking help in the future.

More than six-in-ten Canadians (62%) believe the credit system is designed for those already financially stable, a perception particularly strong among Gen Z (71%) and Millennials (70%). This highlights challenges in accessing credit-building opportunities. Money Mart notes that it has seen thousands of customers transition from payday loans to installment loans that facilitate credit building through responsible repayment and reporting to credit bureaus.

Concerns about credit scores are also impacting major life decisions. Many Canadians are delaying or deciding against significant milestones, such as purchasing a home or financing a vehicle, due to worries about their creditworthiness, with younger generations experiencing this more acutely.