How to Improve Your Credit Score
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What is a credit report? A credit report is a history of how consistently you pay your financial obligations. It is created when you first borrow money or apply for credit and is built over time.
Typically, when you apply for a loan, a credit card or even a mortgage, you will need to allow an organization to check your credit history. The companies that lend and collect money or issue credit cards (banks, finance companies, credit unions, retailers, etc.) send credit reporting agencies specific and factual information about their financial relationship with you. Details, such as when you opened up your account, timeliness of your payments and whether you have gone over your credit limit are shown in full.
When you receive your credit score it’s important to make sure that the information in the report is correct. If the score is lower than you expected, carefully reading the report will help you determine which factors are having a negative influence on your score.
The following tips will help you improve your credit score:
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- Make sure you have a credit history: you may not have a score because you do not have a record of owing money and paying it back. One way to build a credit history is by using a credit card.
- Always pay your bills on time
- Don’t go over 50% of the credit limit on your credit card
- Apply for credit in moderation
Don’t let past or present credit issues hold you back from taking the steps to realize your dream of home ownership or consolidating existing credit card and loan debt with your existing home equity. There are many alternative lenders in the Canadian Mortgage Market that have programs to help you get back on your feet following bruised credit.
Want to get started with working on your Credit Score?
