UNDERSTAND WHAT YOUR CREDIT SCORE REALLY MEANS
How To Improve Your Credit Score
More than ever before, good credit is a major contributor to financial well-being. Use these simple steps to improve your credit score.
What Is A Good Credit Score In Canada?
Factors That Can Affect The Calculation Of Your Credit Score
1. Payment History
A good record of on-time payments will help boost your credit score. Payment History accounts for approximately 35% of your Credit Score.
2. Outstanding Debt
Balances above 50 percent of your credit limits will harm your credit. Aim for balances under 35 percent. Outstanding Debt accounts for approximately 30% of your Credit Score.
3. Length Of Credit History & Public Records
An established credit history makes you a less risky borrower. Think twice before closing old accounts before a loan application. Length Of Credit History & Public Records account for approximately 25% of your Credit Score.
4. Recent Inquiries
When a lender or business checks your credit, it causes a hard inquiry to your credit file. Apply for new credit in moderation. Recent Credit Inquiries account for approximately 10% of your Credit Score.