Five Tips to Improve Your Credit

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Five Tips to Improve Your Credit
If you need to improve your credit score, it won’t happen overnight. Years of past behavior and not just your present actions are taken into account when calculating your credit scores, so you should keep in mind that the process of improving your credit score is a marathon and not a sprint.

If you want to build your credit score, it is worth the effort. However, you have to manage your debt responsibly and pay your bills on time. Several other steps also need to be taken, and to help make the process easier, Mortgages with Nicolle Williams and Team Quick has put together a list of five tips to help you improve your credit.

Tip #1: Know where you stand.

It is essential to see how your creditors see you. You can request a free copy of your credit report or even pay a nominal fee to get your report with a score.

Tip #2: Pay your bills on time.

Slow and missed payments are the number one area that affects someone’s overall credit, so be sure to pay on time. If possible, automate your minimum monthly payments so that you don’t miss a payment.

Tip #3: Keep your utilization low.

It’s best if you keep your utilization below 30%. This means that for every $100 you have available to you, try not to use more than $30 at any given time. High utilization is another area that lowers many people’s credit scores.

Tip #4: Avoid getting “hard inquiries”.

When a lender or creditor checks your credit because you are looking to extend or apply for new credit, they carry out a “hard inquiries”, which could pull down your credit score by a few points. Conversely, soft inquiries do not affect your credit score. 

Tip #5: Get an annual credit review.

Be sure to review your credit at least once a year, as this helps to reduce inaccuracies as well as helps to monitor against things like fraud.

As one of the best mortgage agents in Pickering, ON, the brokers at Mortgages with Nicolle Williams and Team Quick want to help you improve your credit and gain access to the best mortgage renewals, pre-approval, purchase, refinance, home equity loan, best mortgage rates, or first-time home buyer mortgage services. We provide our debt consolidation and mortgage services across Pickering, Ajax Oshawa, Bowmanville, Whitby, Scarborough, and Toronto.

To learn more about what we do, please click here or get in touch with us here for any mortgage-related information you need.