How to get and keep a great score on your Canadian credit bureau?
Are you feeling lost when it comes to understanding credit?
You’re not alone – many of us find ourselves in a similar situation.
If you’re dissatisfied with your current credit score, take heart because there are actions you can take to enhance it.
On the flip side, if you already have a good credit score, there are strategies you can employ to sustain it.
In this article, we’ll explore some practical steps you can take in both scenarios.
1 – Pay your bills on time:
Payment history is the most important factor in determining your credit score.
Late payments can have a negative impact on your credit score, so make sure you pay your bills on time every month.
2 – Keep your credit card balances low:
High credit card balances can negatively impact your credit score.
Try to keep your balances below 30% of your credit limit.
For example, if your credit limit is $10,000, try to keep your balance below $3,000.
3 – Don’t open too many new credit accounts at once:
Every time you apply for credit, it can have a small negative impact on your credit score.
If you open too many new accounts at once, it can have a bigger negative impact.
4 – Monitor your credit report:
Make sure there are no errors on your credit report that could be hurting your credit score.
You can get a free copy of your credit report once a year from each of the three major credit bureaus.
5 – Use a mix of credit:
Having a mix of credit, such as credit cards, loans, and a mortgage, can help improve your credit score over time.
6 – Keep old credit accounts open:
The length of your credit history is also a factor in determining your credit score. If you have an old credit account that you don’t use anymore, it’s better to keep it open and use it occasionally.
Conclusions and Further Thoughts
By following these steps, you can improve your credit score and maintain a good credit rating over time.
It’s important to remember that improving your credit score takes time and effort, but the benefits of having a good credit score can be significant in the long run.
Sincerely,
Michael
PS – One of my hobbies is blogging about mortgages, debt and government policy. During the day I’m a MORTGAGE BROKER in Kelowna, BC!
Check out the Huber Mortgage Home Buyers Guide HERE
