How to improve my credit score in Canada?

If you are looking to acquire a mortgage, credit card or loan In the country of the maple leaf, you will need to have an optimal score to be the ideal candidate for these types of requests. Banks will always want to lend money to those who have an admirable financial rating, since this “guarantees” that the person will be able to pay their debt. If you are interested, at Q’PASA we tell you how you can improve your credit score in Canada.

Before you start, learn how your credit score works in Canada. If you have a score of 300 to 599, you have a “poor” rating; if it is from 600 to 649, you have a “fair” rating; if it is 650 to 719, it means that you have a “good” grade; if it is 720 to 799, you have a “very good” rating; and if it is 800 to 900, you have an “excellent” rating.

If you already know what range your credit score is in and you are concerned, here are some tips that will help you improve your score.

1. Improve your payment history:

It is recommended that to improve your payment history, you should carry out all your debt transactions on time. In case you cannot enter the total amount, it is good that you speak with your lender to reach an agreement.

2. Don’t use your credit card, lines of credit, or loans all the time

Credit utilization determines 30% of your credit score; so try to keep your card usage below that percentage. According to the Government of Canada website, “It is better to have a higher credit limit and use less each month,” since if you use a larger sum, the lenders will see your application as a “risk”.

3. Increase your credit limit

By increasing your credit limit and continuing to use the same amount that you were already using, this will reduce the use of your credit.

For example, if you were using a C $ 4,000 credit card before and you only spent C $ 1,500; By increasing your credit limit to 5,000 and continuing to use the same amount spent, this will make you have a very reliable profile with financial institutions.

4. Don’t frequently request credits or verifications

Frequently requesting credits or verifications will make banks and lenders think that you are not an ideal candidate to turn them a loan. When these entities request a credit report, this is recorded as an inquiry, and the more inquiries you “accumulate,” the less trust they will have in you.

5. Get a car loan

Another way to improve and establish your credit score is by using different types of credit, among them are lines of credit, cards and car loans.

If you are interested in this last option, with Micarro.ca you can improve and establish your credit through the purchase of a car. “Just a click away”, this agency allows you to finance the vehicle of your dreams regardless of your credit.

With this platform you can obtain specialized loans with economic, safe, effective and fast processes. If you are concerned about not obtaining financing, we tell you that 99% of the credits are approved.

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