Tips To Improve Your Credit ScoreJune 10, 2013
When you decide to make a big purchase such as a new home or car it is a wise decision to take a look at your credit score first. This will save you the time and effort of looking around, only to find out that your credit is too low to purchase it. It will also help you secure the best mortgage rates Canada lenders are offering.
When you look at your credit score, it’s important to look at everything on it and ensure its accuracy. Leaving inaccurate items on your credit report could have negative implications on the mortgage rates when it’s time to buy. If it is accurate, but your score is lower than you thought it ought to be, then you need to look at what has the negative influence and take actions to improve it. There are steps that you can take to help improve your credit rating. These include:
- Pay all of your bills on time. Although not all of your bills report to the reporting agencies such as phone, utility, electricity and cable, there are others like cellular companies that do. Even small bills can affect your credit score.
- If possible pay your bills in full each month before their due date. When this is impossible, pay off the minimum required amount before the due date.
- Any debts you incur should be paid off as quickly as possible.
- When using your credit cards, keep the balance as far below your limit as possible and never go over your limit. The higher the balance you maintain on your credit cards, the harder it impacts your credit score.
- Avoid making multiple credit applications. The more potential lenders inquire about your credit score in a short period of time, the increased negative effect it will have on your score. However, it is wise to look at your credit score to ensure that it is accurate. Looking into your own score doesn’t affect the rating.
- Even though, you do not want to have too much available credit in the forms of credit cards, it is important to keep one or two. Sometimes when you have a low credit score, it is because you have no credit. By having one or two credit cards, you can help build up your rating.
It is important to report any incorrect information in your credit report to the appropriate resources. When you leave it on your report, it will reflect poorly on your score. It will lower the chance of you being approved when it comes time to make a purchase, especially a big purchase like a home. It will also help you to secure the best mortgage rates Canada lenders are offering. You should always understand your credit history report. When it comes time to purchase a big item, and securing the best mortgage rates, you will be thankful that you have kept an eye on your credit.