The start of a new year brings fresh opportunities to take control of your financial future. While many Canadians set resolutions to save more money, pay down debt, or join a gym, one of the most impactful goals you can set is improving your credit health.
Your credit score affects everything from loan approvals to rental applications, making it an important part of financial wellness.
This January, we're challenging you to make 2026 the year you transform your credit profile. Whether you're rebuilding after a financial setback or maintaining good credit habits, small consistent actions can lead to significant improvements over time. And we have a little incentive to help motivate you towards those goals - an awesome new contest!
Enter Our "New Year, New Credit You" Giveaway
We're giving away President's Choice e-gift cards to help you begin the year right! From January 6-13, you can enter to win $150, $100, or $50 in gift cards.
Here's how to enter:
Visit the iCash Credit Health page and sign up or log in
Comment on our giveaway post on Instagram or Facebook with your 2026 financial resolution (like "Save for a house" or "Pay off my credit card")
Fill out the entry form with your name, email, and province
It's that simple! Plus, you'll get access to tools and resources that can help you achieve those financial resolutions throughout the year.
Understanding Why Credit Health Matters
Your credit score isn't just a number. Look at it like this - it’s a financial passport that opens doors to better opportunities. Lenders, landlords, and even some employers check credit reports when making decisions. A strong credit profile can save you thousands of dollars in interest over your lifetime and provide access to financial products when you need them most.
For many Canadians, especially those receiving government benefits like ODSP, AISH, CPP, or EI, maintaining good credit can feel challenging. Life circumstances, unexpected expenses, and income limitations can make it difficult to stay on top of payments.
However, understanding how credit works and implementing strategic habits can help anyone improve their score, regardless of their current financial situation.
Set Realistic Financial Resolutions for 2026
The key to lasting change is setting achievable goals. Instead of vague resolutions like "be better with money," try specific objectives that directly impact your credit health.
Consider resolutions like paying all bills on time throughout the year, reducing your credit card balance by a specific percentage, checking your credit report semi-regularly for errors, or keeping credit utilization below 30% of your available limit. These concrete goals give you clear targets to work toward and make it easier to track your progress.
Start small if you're new to credit building. Even the smallest improvements add up over time. If you've struggled with late payments in the past, focus solely on payment timeliness for the first few months. Once that becomes routine, add another goal like reducing balances or diversifying your credit mix.
Create a Budget That Works for Your Life
You can't consistently make on-time payments if you don't know where your money is going each month. The good news is that budgeting doesn't require complicated spreadsheets or expensive apps, it just requires honesty about your income and expenses.
Begin by tracking every dollar you spend for one month. This exercise often reveals surprising patterns, like how much you're spending on subscriptions you've forgotten about or how those daily coffee runs add up. Once you see where your money actually goes, you can make informed decisions about what to cut and what to keep.
For Canadians on fixed incomes like disability benefits or pensions, budgeting becomes even more critical. When income is predictable but limited, knowing your exact financial picture helps you avoid shortfalls that could lead to missed payments. Building in a small buffer for unexpected expenses. Even $25 set aside each month can prevent a minor emergency from becoming a credit-damaging crisis.
Master the Art of On-Time Payments
Payment history is the most important factor in your credit score. It accounts for roughly 35% of the calculation. This means that paying bills on time has the biggest impact on improving your credit profile. Even one late payment can stay on your credit report for up to six years in Canada, so consistency matters tremendously.
Set up automatic payments for bills with fixed amounts like phone plans, internet, or loan payments. For variable bills like credit cards, schedule a reminder a few days before the due date so you can review the amount and submit payment manually.
If you're worried about forgetting due dates, create a calendar specifically for bill payments. Mark each due date and set reminders for about three days before (or whatever works best for you personally). This gives you time to arrange funds if needed, especially important if you're coordinating payments around benefit deposit dates.
Reduce Your Credit Utilization Strategically
Credit utilization is the percentage of available credit you're using. It's another major factor in your score. Experts recommend keeping utilization below 30% of your total available credit. For example, if you have a credit card with a $1,000 limit, try to keep the balance below $300.
If your balances are currently high, focus on paying down the cards with the highest utilization first. This strategy, sometimes called the "avalanche method," targets the accounts that are hurting your score the most. As you pay down these balances, you'll likely see your credit score improve relatively quickly.
Another approach is requesting a credit limit increase on cards you've managed well. This instantly reduces your utilization percentage without requiring you to pay down balances as aggressively. However, only use this strategy if you trust yourself not to increase your spending, otherwise, you'll end up in a worse position than before.
Check Your Credit Report Regularly
Many Canadians rarely look at their credit reports, only checking when they apply for a loan or mortgage. However, regular monitoring helps you catch errors, spot potential fraud, and understand how your financial behaviors impact your score.
You're entitled to free credit reports from Equifax and TransUnion, Canada's two main credit bureaus. Request your report at least once per year, or more frequently if you're actively working on credit repair. Review every entry carefully, checking that all accounts belong to you, balances are reported accurately, and there are no late payments incorrectly listed.
Alternatively, if you’re a member of iCash, you get free access to the iCash credit health service, which can help you stay on top of your score, monitor changes and ensure you’ve got the best foot forward when it comes to improving your credit in the new year!
If you find errors, dispute them immediately with the credit bureau. Even small mistakes can drag down your score unnecessarily. The bureaus are required to investigate disputes and correct any inaccuracies, typically within 30 days.
Stay Motivated Throughout the Year
Remember, improving your credit takes time, and it’s natural to feel a lack of motivation, especially if you’re not seeing the huge improvements that you’re hoping for right away. It takes time. Be patient.
Break your annual goal into monthly milestones so you can celebrate small wins along the way. If your goal is reducing credit card debt by $3,000, that's just $250 per month, which is much more manageable when you break it down.
Working towards your goal with a partner (spouse, friend, etc.) can help you both hold each other accountable, so if you know someone who would be willing to join you on this financial wellness journey, do it! Check in monthly to discuss progress, challenges, and strategies.
Make 2026 Your Best Financial Year Yet
Building better credit health doesn't require perfection, it requires consistency. Small positive actions repeated over time create lasting change. Whether you're starting from a challenging credit situation or maintaining good habits, this year can be the turning point in your financial journey.
Remember to enter our "New Year, New Credit You" giveaway running January 6-13 for a chance to win President's Choice e-gift cards. Visit our Credit Health page to enter and access free tools that support your credit-building goals.
Your credit score is within your control. The habits you build this January will pay dividends throughout 2026 and beyond. Start small, stay consistent, and watch your financial future transform one payment at a time.
