7 Tips to Improve your Credit Score in Canada
Improving your credit score in Canada can be achieved by following these steps:
1. Pay your bills on time: Late payments can have a significant impact on your credit score, so it’s important to make all your payments on time.
2. Keep balances low on credit cards and other “revolving credit” accounts: High balances can indicate that you are using too much of your available credit, which can be a red flag to lenders.
3. Don’t close old credit card accounts: Length of credit history is a factor in your credit score, so keeping old accounts open can help.
4. Be cautious about applying for new credit: Every time you apply for credit, it generates a “hard inquiry” on your credit report, which can temporarily lower your score.
5. Dispute errors on your credit report: If you find errors on your credit report, you can dispute them with the credit bureau.
6. Consider using a secured credit card: A secured credit card can help you build or rebuild your credit by reporting your payment history to the credit bureaus.
7. Avoid using your credit cards to their limit: Keeping your balances low will help to improve your credit utilization ratio, which is a key factor in your credit score.
By following these steps and being consistent, you can improve your credit score over time.