How to Increase Your Credit Rating
A bad credit rating may harm you in several ways, but one thing is for certain: you will pay more in mortgages, loans and pretty much any other type of financing you wish to obtain.There are even companies that check a prospective employee’s credit rating before hiring them!
So then, what's the answer? Check out these 5 tips that can get your credit back on track:
Pay your credit cards
Making minimum payments to your credit cards do not translate to good credit ratings. But if you get your balance to as low as 30% of the credit limit, that can really help your credit rating. Lenders like to see a big difference between your balance and credit limit.
Pay on time
Never make late payments if you want to increase your credit rating. Late payments can lower your credit rating because it shows the lender that you may not be credit worthy.
Use your credit cards wisely
It is not good to pile up huge balances in your credit cards. Even if you pay your bills in full, this can still hurt your credit rating. Therefore, it is not always wise to use your credit card just to accrue rewards points.
Use your old credit card
Have you stopped using one of your credit cards? Not using your oldest credit card does not mean that your credit rating will be increased. On the contrary, credit scoring companies will not give much weight on this. Therefore, it is advisable to use all your credit cards once in a while. Charging a small amount then paying it in full can actually increase your credit rating.
Correct errors in your credit reports
Regularly check your credit reports for any error. Unlike in the United States, Canadian residents can request for their credit reports as often as they can. If you see any significant error, immediately request for corrections as these can lower your credit ratings.
Do not forget these tips and see your credit ratings increase!
Your Credit Score
Your Credit Score is the single most important factor any Creditor will look at when deciding on whether or not to provide you with anything from a small personal loan on up to a Mortgage.
Video Tips
Steve Ely, President of Equifax Personal Solutions gives a Frank and Honest assesment of what you can do to Protect and Improve your Credit Score
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