Why did my credit score drop in Canada? Check the common causes
Quick summary
A score usually drops because of something in the factors the FCAC lists: late payments, high balances compared with your limits, new applications, a shorter history, or a change in the mix of credit. Tick what applies in the checker below. The surest way to know is to read your own report, see which credit bureau lenders use.
Checked November 12, 2026. Main source: FCAC: Improve your credit score (modified November 4, 2026, read November 12, 2026). See all 2 sources.
Key facts
- Most important factor
- Payment history
- Source: FCAC, Nov. 4, 2026
- Utilization guideline
- Under 30% of your limit. Example: $1,000 on a $5,000 limit is 20%
- Source: FCAC, Nov. 4, 2026
- Hard inquiry rule
- Car loan or mortgage quotes within 2 weeks count as 1 inquiry
- Source: FCAC, Nov. 4, 2026
- Negative info stays
- Generally up to 6 years
- Source: FCAC, July 1, 2026
Check the likely causes
Tick anything that happened before your score dropped.
Nothing ticked? Get your free report from both bureaus and compare. The cause is often an item you did not expect. Get your free credit report.
This tool does not know your score or your report. It points you to what to check first. Nothing you tick is saved or sent.
Factors from FCAC: Improve your credit score (modified November 4, 2026, read November 12, 2026). The checker is our tool and cannot see your report.
The factors behind a score
- Payment history. The FCAC calls it the most important part. A late or missed payment can hurt.
- Utilization. The FCAC says to keep your balances under 30% of your limits. Using more of your limit can pull a score down.
- Length of history. Closing an old account can shorten it. The FCAC says to keep old no-fee accounts open.
- Inquiries. Applying for credit adds inquiries. Car loan or mortgage quotes within 2 weeks count as 1.
- Types of credit. A mix of credit types can help.
Source: FCAC: Improve your credit score (modified November 4, 2026, read November 12, 2026).
What to do next
- Get your free credit reports from both Equifax and TransUnion. Scores can differ because bureaus hold different data.
- Look for accounts you do not recognize, wrong balances and wrong late payments.
- If you find an error, dispute it with the bureau and the lender.
- Pay down any balance above 30% of its limit and pay on time every month.
- Avoid applying for several new accounts at once.
The steps are our plan built from the FCAC factors, not an official checklist.
How long negative information stays
The FCAC says negative information generally stays on your report for up to 6 years. Inquiries stay 3 years at Equifax and 6 years at TransUnion. Bankruptcy, consumer proposal and debt management plan details have their own rules, listed on the FCAC page.
Source: FCAC: Information in your credit report (modified July 1, 2026, read November 12, 2026).
Check what you learned
3 quick questions. Nothing is saved or sent.
1. What does the FCAC call the most important part of your score?
2. What utilization level does the FCAC suggest staying under?
3. Car loan quotes within 2 weeks count as how many inquiries?
Questions people ask
Why did my credit score drop for no reason?
There is usually a cause in the report, such as a higher balance, a new inquiry or a late payment. Get both free reports and check.
How many points will a missed payment drop my score?
The FCAC gives no number, and we found no official one. It says payment history is the most important factor.
Does paying off a card lower my score?
It can change factors like length of history or mix of credit if the account closes. The FCAC suggests keeping old no-fee accounts open.
Do rate shopping inquiries hurt?
The FCAC says car loan or mortgage quotes within 2 weeks count as 1 inquiry.
Why do my two bureaus show different scores?
Equifax and TransUnion can hold different data, so scores can differ.