Tips on How to Improve Your Credit Score

People often go about their day not thinking about their credit score, that is, until they attempt to apply for mortgage financing and get declined. Of course, we do our best to handle all our financial obligations, but sometimes our rough patches have long-term effects.

Luckily, we have some essential tips on increasing your credit score and becoming more appealing to lenders. So let’s explore these easy-to-follow steps.

Clean Up Your Payment History

Your payment history stays on your credit report for up to seven years, and your account may not be current after you catch up on your payments. 

Thankfully there are convenient credit apps available that can provide your credit report so you can see any incorrect or outdated information. If you find this is the case, file a dispute with Equifax and Transunion, and they will correct it on your behalf.

Lower Your Credit Utilization

Surprisingly, using more than 30% of your available credit per account lowers your credit score because lenders want to see that you are managing your credit wisely and not recklessly overspending past your means. Being close to your limit once or twice won’t do irreparable harm; however, maxing them out will drag your score down.

Instead, monitor your credit card use to stay within the 30% range and only use more of your balance in an emergency or when you plan to make an immediate payment.

Maintain the Length of Your Credit History

The age of your credit accounts is another factor in determining your credit strength. So it makes sense that the longer you’ve held a credit account, such as a loan, vehicle financing, or credit card, the lengthier your reporting history.

The result is lenders can see your repayments are steady and you are trustworthy. So, while it may be tempting to shut down credit accounts to clean up your credit, it may harm you more than help. Instead, use it once in a while and make the payment within the schedule.

Improve Your Credit

The most significant detriment to your credit score is frequently missing payments or showing as overdrawn on your account, including your home utilities and phone bill. Yes, they report on your payment history as well.

Make your minimum monthly payments on credit cards, pay your utilities on time, and don’t miss any loan payments. If you come short, contact your lender and make payment arrangements, so they are aware and don’t issue a damaging payment report. Finally, ensure you don’t overextend your bank accounts or lines of credit.

Don’t Apply for Credit Too Often

Another activity that chops away at your credit score is multiple inquiries. Every time you apply for credit, the lender will request a credit report, which is also a reportable activity. Several inquiries are damaging. For example, applying for multiple credit cards at once or a vehicle dealership shopping your loan to several lenders results in too many credit checks, and your score takes a hit.

Get a Secured Credit Card

A consumer proposal or bankruptcy on your credit report can make getting new lending difficult. So, how do you improve your credit score when you can’t get a credit card? 

By providing a security deposit against your credit limit! If your bank offers secured credit cards, you can match your limit with the same secured amount, guaranteeing they have zero risk. Then, you have to follow all of the above suggestions, and you’ll begin to see your credit score improve.

Finally, Get Approved for Your Mortgage

After implementing all these credit-building tips, you are finally ready to apply for your mortgage! Trust the convenient and professional mortgage broker services of EasyMortgageLend.com in Ontario. They have multiple lending products to help you achieve your home ownership goals.

Get approved within minutes by filling out their online form or calling 647-895-3921 today!