When it comes to finances some of your goals may be saving money, paying down debt or starting an investment portfolio. Improving your credit score can be overlooked in your financial picture, here are some ways to help improve your credit scores.
- Keep Credit Card Balance Low by using no more than 30% of the maximum limit on the card as it can affect your credit score.
- Avoid Impulsive Retail Decisions if you are offered a discount by applying for credit on the spot too many cards can affect your credit score.
- Monitor Your Credit Scores and watch for errors as everyone from landlords, to employers as well as lenders scrutinize your credit.
- Don’t Close Old Credit resist the idea as many creditors look to see how old and established your credit history is.
- Make Timely Payments even if you only make the minimum payment do so on time and make sure to never miss a payment as these are the biggest detriment to improving your credit scores.
- Diversify Your Credit Types by having a mix of revolving credit such as credit cards and fixed monthly payments such as car loans, student loans or mortgage payments.
- Never Close An Account if you have a dispute make your payments before closing an account to avoid it going to collections and deal with the issue at that time.
- Don’t Buy Too Much Too Often resist going on a buying spree purchasing a new car, phone and furniture all at once as this can be seen as financial instability.
- Avoid Going On An Application Spree too many can look suspicious and can reduce your credit score.
Many times we may not be aware of everything that contributes to our credit score, by using the tips provided you’ll soon be on the way to achieving your financial goals.
If you need to talk to a mortgage broker in Toronto about your credit, please contact me and I’d be happy to help.
