With how much we use credit cards these days, your credit score says a lot of things about you. It affects many aspects of your life and can affect your future because your credit score will have an impact on your future credit limit, borrowing, and other important aspects of your finances.
Your credit score plays a huge role in your future financial decisions so it is better to start as early as possible in terms of protecting it and repairing it. Below are some tips to help you do this.
Familiarize Yourself with Your Credit History
And also your credit score. Having an understanding of what is holding down your credit score will allow you to make the important first step in repairing and protecting your credit rating.
Ask for a copy of your credit report via TransUnion Canada or Equifax Canada. It is free via mail and is available for a fee if you opt for a digital copy. Having a copy of your credit report allows you to check it for errors such as erroneous records of late payments and wrong figures in terms of how much you owe so that you can file a dispute to have those corrected.
Pay On Time
Your credit score rests on your payment history. Being late for a few days and paying a collection amount can have a negative impact on your score. Staying current with your payments has a huge positive impact.
Protect Your Credit Against Identity Theft
As more of our information gets circulated via the web, there’s more room for nefarious individuals to steal your personal details so that they can make fraudulent purchases in your name. Protect your credit history from this by using services such as one that can alert you for fraud.
Think Twice Before Hiring a Credit Repair Company
After all, they don’t have access to as much of your personal details as you do. Most of what they can do can be done by yourself so you better work on saving your cash instead.
Don’t Go Over Your Card’s Credit Limit
Going over it even just once can have a huge negative impact on your credit score.
Avoid Too Many Credit Applications
An attempt to take on multiple loans will look bad in your report while a single loan or multiple ones in a very short span of time is taken favourably.
Do Not Close Cards On a Whim
Lowering your credit limit by closing accounts that you’ve already paid off will have a negative effect on your credit score.
Take Actions to Reduce Your Debt
Paying off your debt or simply taking actions to reduce it will increase your credit rating. Consolidating debts can work wonders.
Don’t Be Too Hasty in Opening New Accounts
Too many open accounts too soon can lower your average account age thereby affecting your credit score negatively. This is why it is also wise to keep old accounts that you aren’t using open.
Need more expert tips on managing your finances and credit score? Have a chat with the mortgage experts in Toronto. Contact Toronto Mortgage Brokers today!
For more mortgage news, tips and advice, please visit The Homebase Mortgages blog here.