Young Canadians are increasingly unaware of their credit scores and the benefits of establishing credit.
More than 20 per cent of those aged 18-24 are considered “credit ghosts,” meaning they have little to no credit history or don’t know what their credit score is, according to a recent report by Royal Bank of Canada, and they lack knowledge about their credit.
Nearly 80 per cent of respondents said they have a credit score, but 37 per cent of those could not identify what their score was. Nearly half said they are working on improving their score, but 28 per cent are unsure if they are on the right track.
“What stands out is that students care about their credit, but many are still navigating it without a clear sense of where they stand or what will help them make progress,” Lucianna Adragna, vice-president of client segments and everyday banking at RBC, said in a news release. “There is a learning curve for young Canadians beginning to make more financial decisions on their own.”
Not having a credit score makes it difficult for lenders to assess someone’s financial reliability, leading to challenges when buying a car, cellphone or personal loan.
It can also mean turning to an alternative lender, which can result in higher interest rates.
“Paying bills on time, keeping balances manageable and using credit responsibly can build a stronger financial track record over time, which really matters when students are trying to rent an apartment, finance a car or get approved for a loan,” Sara Son Hing, vice-president of personal lending at RBC, said in the release.
The result is that 42 per cent of students said they have already experienced real-world consequences of not having a credit score, with 11 per cent saying they have had trouble getting a credit card approval, eight per cent have had difficulty getting a loan and six per cent have had trouble renting an apartment.
RBC recommends building credit early, tracking your credit score regularly and avoiding credit misinformation, such as the benefits of carrying a balance and cancelling old cards.
“Credit is a financial skill that is best learned by doing,” Son Hing said. “The good news is that building credit is often less about big moves and more about consistent ones.”
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Ana Bailão, chief executive of Build Canada Homes, said regardless of the market cycle, the country needs more homes, specifically more purpose-built rental apartments.
“We’re a practical organization with the key objective of getting shovels in the ground to increase affordability and to create the housing the market is not creating,” she told Bloomberg News.
This comes as Ottawa is looking to get back into the business of building houses, having committed to funding about 19,000 affordable homes to date.
Bailão said she has also received about 900 new proposals in the last year.
Canada Mortgage and Housing Corp. estimates Canada may need upwards of 2.4 million new homes over the next decade to restore affordability.
Read more here.
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McLister on mortgages
Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.
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Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff and Bloomberg.
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Posthaste: More young Canadians are 'credit ghosts'
2026-10-22 12:00:33
