Tips to enhance Your Credit Score

Tips to enhance Your Credit Score

Equifax and TransUnion are the two most important credit reporting bureaus in Canada. Credit reporting bureaus calculate the credit score of a person. Good credit score is an basic part of a mortgage deal and it always helps the would-be-borrowers to get a better mortgage deal with lower rates of interest. The credit score of a person is based on the credit history for the last 5-6 years which includes his salary structure, financial limitations, and the kind of loan used by the person and so on. Most of the people in Canada are unaware of the different factors affecting their credit card score.

The following guidelines must be followed sincerely to continue a good credit rate –

  • A regular payment of monthly bills is the easiest way for improving credit score. If you cannot provide to pay the whole debt amount within the due date of the term, at the minimum try to pay the minimum monthly payment required to continue an overall good credit score.
  • In ideal conditions, the credit amount should always be less than 30% of the obtainable credit of your card. Higher percentages of debt always tend to mirror a poor credit card score.
  • Numerous credit applications in a short period of time always portray a poor financial state of affairs and the credit reporting bureaus get the information immediately, thereby, damaging the overall good credit rate.
  • It is very important to build a reputation of financial trust in the market. You can unprotected to this by regular purchases followed by the respective monthly pay offs. Improving your credit score is always associated with using cards for credit, availing small loans and their timely pay offs.
  • Minor /major errors like, incorrect information, faulty balance details, suspicious transactions, etc. may occur in the credit report. Hence, an annual credit report check is highly recommended for the would-be-borrowers to supervise and correct these errors. In presence of any kind of minor errors or identity theft, the credit reporting bureaus and the personal lending/ financial institutions must be urgently informed to fix these problems as soon as possible.
  • A poor credit card score, if happens, need to be little by little improved by using a obtain debt card (obtainable with a down payment) with regular purchases and timely payments. The score can never be increased or improved with the absence of any cards/personal loans, but, by availing them and managing them wisely and efficiently.

leave your comment