You can best improve your credit health by paying your financial obligations on time, not carrying a credit balance, reporting errors on your credit report and maintaining a decent spending limit.
Here are our top 5 ways:
1. Use Credit in Moderation
Carrying over past balances on your credit hurts it a lot. Also crucial is how much of your credit limit you exceed monthly.
Maintaining a healthy balance between your limit and the amount spent, recommended to keep your spending below 70% of your credit limit tells lenders and bureaus such as Equifax and TransUnion that you may have an easier time paying back debts in the future.
2. Make Consistent Payments
Consider making consistent payment on your trade lines as gym training for a big lifting competition, which in this case could represent a bigger financial goal like buying a house or starting a business. For every late payment you make, a delinquency Is marked on your credit report. These marks seriously reduce your credit scores.
Regular payment benefits your credit health the most as payment history is an important factor contributing to your credit scores.
3. Be Dedicated
In this, like every other important task in life, the key is staying consistent with your efforts and payments.
When looking to build your credit, it is important to only take on monthly payment obligations which are comfortable for you to maintain. Keeping consistent with these payments reports daily on your credit history and improves it a lot.
4. Avoid Credit Inquiries
When looking to improve your credit health, you need to avoid unnecessary inquiries on your credit. Each inquiry will have a negative impact on our credit score, and that is detrimental for your credit health. It shows lenders you are in a habit of shopping around for loans and reduces your chances of being approved.
If you are looking to improve your credit situation, or looking to simply establish a positive credit history, credit repair experts at Canada Auto Experts assist Canadians like you in improving their credit in the shortest possible time. Find our more today at www.canadauto.ca or call 1-855-550-5565 to speak to a credit repair specialist.