4 Easy Ways to Improve Credit Score Quickly in Ontario
4 Easy Ways to Improve Credit Score Quickly in Ontario
Posted on November 2, 2022
Have you found yourself in a credit slump? A low credit score can have a big negative influence on your finances, especially if you’re trying to get a loan. Thankfully there are easy ways to improve credit score that you can start working on right now, and in this article we’re going to go over the best.
Shop With Credit
One of the easiest ways to improve credit score is swapping to a credit card for your regular shopping. One of the key factors for calculating your credit score is credit history and using credit cards will help build up that history with lots of small loans.
As long as you're able to pay the credit back in a timely fashion this is by far the easiest way to build credit.
Pay off Loans
Another factor in calculating your credit score is your current amount of debt, specifically one of the biggest things that will drive your score down is missing loan payments. Making regular, on time payments to your loans may seem basic but it can go a long way towards fixing your credit situation.
The difference between good and bad debt
Check Your Report
Your credit report is a gold mine of information for helping you improve your credit score as it’s essentially a list of every factor that contributes to your credit score. Having an understanding this information can help you spot thing that are causing problems like late payments or inactive accounts that are still open, but most importantly it can help you catch errors.
Errors on credit reports are more common than you may expect and they can have a large negative effect on your score depending on what the error is, for example payments that were made on time that have been recorded as late or accounts that have been closed that are still flagged as open. If you can get these errors fixed you could see a fast and significant increase to your credit score.
Increase Credit Limits
Another of the many factors that goes into calculating your credit score is your “credit utilization ratio” which is a measure of how much credit you are using vs how much you have access to use.
Credit Utilization Rate. Source: Experian
As a general rule you want that ratio to be big, meaning you want to have access to a lot of credit but not be using it all at once, and a very easy way to do that is to increase your credit limit, the bigger the limit, the better for your credit score