Make sure you have credit that is actually reporting to your credit bureau. That is things like credit cards, student loans, personal lines of credit
DO-PAY DOWN CREDIT BALANCES
Reducing your debt level is never a bad idea. But be aware that you need to be using your credit in order for it to be updating, so even if you pay everything off, still put a small balance on one card and pay it off at the end of the month.
DO-CHECK YOUR CREDIT AT LEAST ONCE A YEAR
Knowing what is on your credit report if your best tool to having a great credit score.The 2 most recognized credit reporting agencies are Equifax.ca & Transunion.ca
DO-CORRECT ANY INACCURACIES ON YOUR CREDIT REPORT
Incorrect information on your credit report can be affecting you negatively the longer it stays on there. You need to contact the credit reporting agencies to get those inaccuracies corrected.
DO-TALK TO A PROFESSIONAL ABOUT YOUR CREDIT
If you are thinking of borrowing money in the future, for anything, it pays to have a good credit score. Since credit repair can sometimes take months, it makes sense to talk to a professional early.
DO-LEAVE SOME UNUSED CREDIT OPEN
It shows you have the ability to handle available credit without using it. It also improves your score by lowering credit utilization.
DON’T-GO OVER YOUR LIMIT
You could lose up to 20 points just for going over your credit limit. Keep in mind, balances report to the credit report once a month usually, so if you can pay off the overage quickly, chances are your credit will not be affected.
We can see on your credit report how many times you have been 30, 60 & 90 days late on payments. Lenders are looking at your past repayment history when deciding to extend you more credit or not.
DON’T-GIVE LENDERS DIFFERENT PERSONAL INFORMATION
Each time a potential lender pulls your credit report, it also updates the information on the credit report. Ensure you are giving lenders consistent address, employment and personal information to avoid any confusion.
DON’T-GO ABOVE 75% OF YOUR AVAILABLE LIMIT
Credit utilization affects your credit score. If you can, spread out debt balances over a couple of cards rather than maxing out one.
DON’T-HAVE JUST ONE TYPE OF CREDIT
Varied credit types with different payment structures will keep you credit score high. So if you had to choose between 2 credit cards or a credit card and a line of credit, choose the latter as it shows you can handle different types of revolving payments.
As always, if you have any questions about credit, we will try our best to answer them for you. Contact us by clicking here.