5 Steps To Increase Your Canadian Credit Score

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By Linda Meadley
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5 Steps
To Increase Your
Canadian Credit Score
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Step 1 - Pay On Time

• One of the biggest factors in calculating your
  credit score is based on your payment history.
• So, make sure you make all your payments on time.
  Even one day late will have a negative effect on
  your credit score.
• Dont be lazy, you know that 5.00 balance on
  your credit card you didnt bother paying? You
  just thought you would wait till it was a bigger
  balance? Well this is a big NO NO!
• The scoring formulas do not take in account the
  amount that was late only the fact that you
  were late.
• So, whether a payment of 5.00 or 5000.00 is
  missed, it will have the same negative effect on
  your credit score.

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Step 2 - Use Your Credit Wisely

• Limit your balances on your credit cards.
• You will be deducted points if your balance is
  too close to your credit limit and if you are
  ever over your credit limit you will be deducted
  a lot of points.
• You will want to keep your balance less than 50
  of the credit limit.
• Another important factor you need to know is what
  balance is reported to the credit bureaus and use
  in calculating your credit score.
• Credit card companies report to the credit
  bureaus the balance that is on your monthly
  statement.
• So, even if you pay off your credit card balance
  monthly, the balance that is used to calculate
  your score will be the balance on your statement,
  not the paid off amount.

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Step 3 - Apply For Credit Carefully

• Applying for more than two accounts in a short
  period of time will have a negative effect on
  your credit score as it makes you appear
  desperate and in great need of cash.
• Make sure you are only applying for credit when
  there is a need.
• Avoid all the department store offers and
  gimmicks, such as a free gift or discount for
  applying for their credit card.
• Be wary when purchasing a new vehicle, do not
  put in a credit application at every dealership
  just to see if you can get approved.
• Apply only once you have found the vehicle you
  want, and make sure they do not over submit your
  application to a bunch of lenders.

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Step 4 - Protect Your Identity

• ID fraud is one of the fastest rising crimes in
  our nation. Over 11,000 Canadians were victims
  of this fraud in 2009, which resulted in more
  than 10 million dollars lost.
• Thieves get ahold of your information, apply for
  credit cards and rack them up fast. Obviously
  they are not making payments. Your credit score
  will suffer greatly with the increase in
  inquiries, high balances and missed payments.
• Identity thieves love trash bins, so protecting
  your information is crucial. Shred all your
  personal information and financial documents.
  This includes the addresses on envelopes. ID
  thieves are looking for names, addresses, SIN,
  date of birth, mothers maiden name, bank
  accounts, signatures, drivers license and
  passwords.
• As we use more online and smart phone tools, make
  sure you are taking precautions online. Only use
  secure sites and protect all your passwords.

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Step 5 - Monitor Your Credit Report

• 1 in 5 consumers have reported to having errors
  on their credit reports.
• Certain errors can have a dramatic effect on your
  credit score, which can result is higher interest
  rates or even worse a declined application.
• Best practice is to monitor your credit report on
  a regular basis, and especially before you apply
  for credit of any type.
• Make sure there are no errors and correct any
  that do appear.
• There are many services out there to assist you
  with monitoring your credit. From the credit
  bureaus to your credit card companies and banks.
  So take advantage of these services to protect
  yourself and your credit.

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Need A Copy Of Your Credit Report and Score?

• CreditEh.ca
• For instant access to your
• Canadian Credit Report
• Canadian Credit Score
• Canadian Credit Monitoring Services

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