7 Ways To Help Boost Your Credit Score

7 Ways To Help Boost Your Credit Score https://learningcentre.statefarm.ca/family/finances/7-ways-to-help-boost-your-credit-score/ bb3 Mar 28, 2012

By Staff Writer State Farm™ Employee

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Credit scores are a timely indicator of financial responsibility. The higher your position on this scale of 300 to 900, the better your chances of qualifying for credit cards, loans and lower interest rates. Help boost your score and show lenders you’re a responsible user of credit by following these tips from the Financial Consumer Agency of Canada:

  • Check your report. Obtain your credit report online through Canada’s major credit-reporting agencies, Equifax and TransUnion, once every year to check for errors and signs of identity theft. The Office of Consumer Affairs at Industry Canada offers suggestions for correcting inaccuracies in your credit score report.
  • Pay bills in full by the due date. Set up automated payments to ensure you’re always on time. And keep in mind: Utility payments are not reported to credit-reporting agencies, but cell phone bills can be.
  • Stay below your credit limits. At most, use only 50 percent of your available credit—less than 30 percent is optimal. If you need to use more of your limit in a particular month, some cards will allow you to make a payment before the closing date to reduce the monthly balance, and make a second payment before the due date.
  • Do use credit. A long, responsible credit history positively impacts your credit score. If you don’t currently qualify for a credit card, apply for a secured card. For these cards, you put down a deposit with the issuer, who then makes a percentage of that deposit available to you as credit.
  • Limit credit applications. Multiple inquiries from lenders about your credit in a short period of time may hurt your credit score (inquiries you make personally have no effect, however). Help protect your score by spreading out applications for credit over a longer period of time.
  • Avoid changes. Keep old cards active to help lengthen your credit history. Resist the temptation to lower credit limits or consolidate your debt onto lower-interest cards; both could affect your debt-to-credit ratio and potentially damage your score.

For more information about your credit, read “Understanding Your Credit Report and Credit Score” from the Financial Consumer Agency of Canada.

The information in this article was obtained from various sources. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. The information is not intended to replace the advice of a qualified professional. Nor is it intended to effect coverage under any policy. State Farm makes no guarantees of results from use of this information. We assume no liability in connection with the information nor the suggestions made.