You’ve got a copy of your credit report or you’ve gone to the bank and they tell your credit score…and it’s low. Disappointingly low. Damn. Low credit scores can translate into higher interest rates and difficulty in obtaining credit. On the other hand, maybe you’ve got got a great credit score and you want to know how to keep it high. I’ve put together a quick list of tips to improve and maintain your credit score:
- Pay ALL your bill on time and in full. This includes bills like your cellphone and utilities, in addition to credit card bills. Late bills, even cellphone bills, may be reported to the credit-reporting agencies.
- Reduce your debt. Pay back outstanding loans as soon as possible.
- Stay under your credit card limit – the further from the limit the better.
- Reduce how many credit applications you make. Many credit applications over a short period of time may have a negative impact on your credit score.
- Be wary of companies that claim to repair credit scores. There are no magic bullets or loopholes for instantly fixing your credit score. Truly, the best way to repair your credit is to adopt better credit habits.
It’s in your best interests to keep a high credit score, especially when you go to apply for a mortgage or car loan. For even more information on credit reports, score and ratings, check out the Financial Consumer Agency of Canada’s publication: Understanding your Credit Report and Credit Score.
Have a good ‘un