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Having a good credit score is critical to being financially healthy. It shows that you pay your debt on time, have a manageable debt amount, and are a responsible debtor. If you don’t have a good credit score, you will find it difficult to access the best loan and credit programs. Additionally, the better your credit score, the better interest rates you can access.
Here are a few tips that can help you improve your credit score quick.
- Know your score
The first step is to actually know your score. The score range in Canada ranges from 300-900. Remember, the higher the credit score, the better you are placed. You can check your credit score by applying for your credit report from Transunion and Equifax.
- Prioritize your payments
Important as they are, mortgage payments generally are not reported on Canadian credit reports, so it’s more important to make your credit card, loan and lease payments on time. If you prioritize your payments you can raise the credit score.
- Pay the bills on time
Making a credit card payment even one day late will hurt your score. If you’re paying online, send the payment at least three banking days before it’s due to allow enough time for the transaction to be processed. Setting up a small automatic payment to your card issuer each month will ensure you never forget to pay at least the minimum. The bottom line is to pay the bills on time if you want to improve the credit score quick.
- Don’t close unused credit cards
If you have a low-interest card you don’t use, keep it open and use it periodically. Having a zero-balance credit card actually helps to raise credit score.
- Don’t apply for too much credit at once
Don’t lease a car, sign up for a new cellphone and apply for a loan all in the same month. The credit bureau identifies this as a sign of a sign of financial trouble, and it would get worse if these applications are rejected. Beware, also, of being preapproved by several lenders before you’re ready to buy. Although you can check your own credit rating without penalty, pre-approvals from lenders count against your score.
If you still find that easy steps don’t improve your credit score, then you need debt consultation. The quicker you decide to improve your credit score, the easier you will be able to tackle the problem.