One in five Canadian students lack a credit score - and advisors can help

A new study commissioned by Royal Bank of Canada (RBC) reveals that more than one in five (21%) Canadian post-secondary students between the ages of 18 and 24 either have no credit score or do not know what one is - a finding that points to a meaningful client education opportunity for financial advisors working with younger Canadians and their families.

Released October 21, 2026, the Ipsos survey of 500 Canadian post-secondary students found that even among those who do have a credit score, more than one-third (37%) cannot identify what their score actually is.

Combined, those figures suggest that a substantial portion of the next generation of wealth clients is entering adulthood with little practical understanding of one of the most consequential financial tools they will use.

A knowledge gap with real consequences

The research goes beyond attitudes and captures tangible financial setbacks.

Forty-two per cent of students surveyed said they had already experienced a real-world consequence from having limited or no credit history - 11 per cent had been denied a credit card, eight per cent had difficulty obtaining a loan, and six per cent had encountered obstacles renting an apartment.

Nearly half of respondents (48%) said they are actively trying to build or improve their credit, yet 28 per cent remain uncertain whether their efforts are working. Sixteen per cent said they want to build credit but do not know where to begin.

"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," said Lucianna Adragna, Vice President, Client Segments, Everyday Banking, RBC. "There is a learning curve for young Canadians beginning to make more financial decisions on their own."

Credit myths persist among younger Canadians

The survey also identified several widely held misconceptions. While 74 per cent of students correctly understand that paying credit card bills on time supports a stronger credit score, and 69 per cent recognise the value of responsible use over time, a smaller but notable share hold inaccurate beliefs: five per cent believe carrying a credit card balance month to month can improve their score, and six per cent think closing their oldest credit card would help.

These misconceptions matter - and they represent a direct entry point for financial advisors. Wealth Professional has reported on the persistent gap in financial literacy among Canadian youth, including surveys showing that many Canadians rate their own credit knowledge poorly. Advisors who proactively address credit basics with younger clients - or with the adult children of existing clients - are well positioned to deepen those relationships before competitors do.

What advisors can do

"Credit is a financial skill that is best learned by doing," said Sara Son Hing, Vice President, Personal Lending, RBC. "The good news is that building credit is often less about big moves and more about consistent ones.

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."

For advisors, the data reinforces what many already observe anecdotally: the transition from student life to independent financial decision-making is a critical and often underserved moment. Financial literacy programming for young Canadians has gained momentum in recent years with initiatives from organisations such as the Canadian Foundation for Economic Education aiming to close the gap - but structured guidance from a trusted advisor remains one of the most effective interventions.

Why this matters for the advisory channel

For advisors, the survey is a useful reminder that client acquisition among younger demographics does not always begin with an investment conversation. Credit education - explaining how a score is built, what affects it, and how early habits compound over time - can be a low-barrier, high-trust entry point into a relationship that may eventually encompass planning, insurance, and wealth management.

Wealth Professional has covered the growing importance of advisors engaging with college-age clients and career starters as a practice-building strategy. The RBC data adds statistical weight to that case: with 42 per cent of students already experiencing credit-related setbacks, the demand for straightforward, credible guidance is clearly present.

The Ipsos survey was conducted between August 25 and September 9, 2026, with a credibility interval of ± 5.4 percentage points, 19 times out of 20.