How to Improve Your Credit Score

Your credit score is a key part of your financial profile. A higher score can make it easier to qualify for personal loans, lines of credit, and other financial products. Improving your credit score takes time and consistency, but even small changes in your habits can lead to meaningful results.

1. Review Your Credit Report

Start by checking your credit report to understand your current score and what factors may be impacting it.

• You can get a free credit report from TransUnion or Equifax.
• Look for errors or unfamiliar accounts and report any inaccuracies.
• Reviewing your report regularly can help you spot issues early.

2. Make Payments On Time

Your payment history is one of the biggest factors affecting your credit score.

• Set reminders or automate payments to avoid missing due dates.
• Always make at least the minimum payment, even if you can't pay the full amount.
• Consistent on-time payments show lenders that you are a reliable borrower.

3. Keep Your Balances Low

High balances on credit cards can hurt your score, especially if you are using a large portion of your available credit.

• Aim to use no more than 30% of your credit limit.
• For the best impact, try to keep it closer to 10%.
• Paying down existing balances can improve your credit utilization ratio.

4. Diversify Your Credit Types

Having a mix of different types of credit can help demonstrate your ability to manage various forms of borrowing.

• This may include credit cards, lines of credit, personal loans, or car loans.
• Avoid opening new accounts just for the sake of diversity; only take on credit you genuinely need and can manage responsibly.

Additional Resources

For more information about credit scores and how they are calculated, visit the Government of Canada’s credit report and score basics page.

This article is for informational purposes only. While we aim to provide helpful guidance, we cannot guarantee that the information is complete or up to date. This content is not intended as financial advice tailored to your specific situation.