Raising My Credit Score in Edmonton, Cold Lake, Fort McMurray, and Calgary
Whether you’ve suffered from some past financial mistakes or you simply don’t have much credit, you may ask yourself, “how do I raise my credit score?”. Your credit score is an important factor that will dictate whether or not you can receive a loan or other types of credit, and it will also decide how much you can be approved for. The higher your credit score, the more opportunities you’ll have. If you’re interested in raising your credit score in Edmonton, Cold Lake, Fort McMurray, or Calgary, use the following tips.
Check Your Credit Report
The first thing you should do is check your credit report for any erroneous information. If you have any collections or missed payments incorrectly listed, this could be the reason why your score is low. You should also check to make sure that your credit limits are being reported accurately and that your current balances are also being reported correctly. Any errors, even small ones, can have a detrimental effect on your score. If you notice an error, contact the credit bureau and have it fixed.
Make Timely Payments
To raise your score, lenders need to see that you have a strong repayment history. Make sure that you are always paying your loans or credit cards on time. Once you’ve established a history of timely payments, you will see your score start to go up. If you do not have any loans or credit cards, get one. You can get a small car loan or a secured credit card to start establishing credit and good history.
Be Mindful of Debt
Sometimes it’s easy to just throw a purchase on a credit card, but that’s not smart for your credit score. If the balances on your credit cards are more than 30 percent, your credit score will go down. This is why you need to either ensure you don’t put more than 30 percent of the credit limit on the card or that you pay the card off in full each month. By doing this, you’ll have a smaller debt ratio, which will help to improve your score.
Don’t Apply All at Once
Aside from your debt ratio and payment history, credit inquiries will also affect your score. Every time you apply for a credit card or a loan, an inquiry is placed on your credit report. These not only lower your score, but they stay on your report for two years. If you apply for multiple credit cards or loans all at once, lenders will assume you’re in a bad financial situation and may be weary of lending you money. Instead, only apply for cards and loans as you need them.
Let YEG Auto Credit Help
As mentioned above, you can raise your credit score by taking out a vehicle loan and ensuring you make timely payments. Regardless of your credit history, YEG Auto Credit can provide Fort McMurray, Calgary, Cold Lake, and Edmonton residents with a vehicle loan you can afford. Contact us today to get started on your application.