Six Ways To Boost Your Credit Score
 November 9 2015     Posted by

Six ways to boost your credit score

Your credit score is essentially your passport to financial opportunities. With a possible range of 300 to 900, your number tells lenders what kind of a risk you are likely to be as a borrower. A low credit score can prevent you from getting the lowest mortgage rate, or even from getting a mortgage at all. That’s why it’s important to know the six credit behaviours that can keep your score high, or give it a boost!

1. Know what you’re working with. Get a copy of your report and see what your lender sees. Credit reports can be ordered for free through the mail or, for a small fee, downloaded from www.equifax.ca.
   
   
2. On time, all the time. The single biggest factor in your credit score is having a timely bill payment history. Start today with a commitment to never let a bill get past due. Recent late payments are factored more heavily than old ones so start today and never let a bill get past due.
   
   
3. Know your limits. Your credit score is based on your balances relative to your available credit. Look at your credit limits and try not to use more than half of the available amount.Keeping your accounts near their maximum limit can signal that you don’t manage credit responsibly, and that you may have trouble making payments in the future.
   
   
4. A longer history is better. Don’t cancel your oldest credit card. In fact, get advice before you cancel any cards. A long steady history of using cards responsibly demonstrates trustworthiness.
   
   
5. Be selective. When you’re asked “would you like to apply for our Store Card to save $X dollars on your purchase?” Don’t do it. These pitches can be a credit pitfall. Regularly looking for more credit will flag you as a potential credit risk. Opening several credit accounts in a short period of time is a risk factor. How many
   enquiries done on your behalf can also have an effect on your score.
   
   
6. Keep it balanced. Creditors like to see that you can handle a wide variety of credit types. A healthy mix of credit i.e. car loan, mortgage and credit card is more positive than a
   concentration of debt in only credit cards.
   
   

We would be happy to review your situation. If you need to improve your score, we can outline your best options for credit improvement. We can review your situation and coach you on how best to improve your credit over time. As your good credit history becomes established, in due course your borrowing options will increase. If you want to get a mortgage while you work on bettering your score, we can also advise how that may be possible.