Improving Your Credit Score

Improving your Credit Score takes time, patience and most of all, diligence. You must be on time with all your financial obligations and pay extra on your debts when you can. Below are some tips to help you achieve your goals.

Tips to improve your credit score and to obtain a lower interest rate:

  • Pay extra on your debts whenever you can afford to. Just $20 a month more on any bill is $240 more yearly than you would be paying otherwise.
  • Never go over your assigned credit limit – and leave extra room for theinterest that will be charged at the end of the month.
  • Try keeping credit card balances from 4% to 12%. High credit balances cause your Credit Score to go down, while low balances increase your score. You must continue to use your credit card wisely to achieve the best results.
  • Pay off (or make arrangements to pay off) any outstanding debts that you have in collections immediately. The sooner you take care of your financial problems, the sooner you can improve your score.
  • If you have bad credit, obtain a secure credit card to begin re-establishing your credit immediately (hyperlink Secure credit card)
  • The best way to increase your Credit Rating is to purchase items that can be paid off the moment the bill comes. Through purchasing and paying on time constantly, your Credit Score will slowly increase

Factors That Do Not Affect Your Score

  • Age – your age does not affect your credit score
  • Income – Income is very important to mortgage lenders as it gauges your threshold for debts, but it does not effect your Credit Report. Learn how income affects your mortgage qualification.
  • Where you live – where you are located in Canada does not affect your Credit Score.
  • Interest Rates – the rate of interest being charged on your financial obligations does not affect your Credit Score.
  • Social support – social assistance such as childcare or disability income are not tracked by credit agencies and does not affect your Credit Score.
  • Your inquires – if you personally access your Credit Report, it does not effect your credit score.