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How to Build Credit Faster in Ontario: 3 Biggest Tips

How to Build Credit Faster in Ontario: 3 Biggest Tips

car loan regardless of credit score

 

There is a massive amount of credit-related information posted online; most of it is clickbait; it was written for the search engines but doesn’t help you, the consumer.

 

We are going to give you the information you need to build credit score faster in Ontario and keep it high, all without gimmicks or asking you for cash upfront; in fact, we won’t ask you for any money at all!

 

Don't Cut Corners

 

The first thing we cannot stress enough is there are no shortcuts when it comes to trying to build or rebuild your credit.

 

Time can be your greatest enemy or ally, depending on how you approach your credit challenges.

 

Something that you need to be aware of when it comes to credit is how you handle your finances over time is the biggest single variable that impacts your score.

 

How credit score is calculated. Source: Canada Drives

 

If you have an amazing income but don’t pay your bills on time or as agreed, then your credit score will be dismal compared to someone who earns a modest income but is responsible for his/her finances.

 

Fundamental steps to Build Credit Faster in Ontario

 

There are a few steps you can take when rebuilding your credit; start by signing up for pre-authorized payments so you never have to worry about not making a payment on time.

 

You are required to ensure there is enough cash inside your account; otherwise, you will be dinged with NSF fees that can easily exceed $45 for each instance it occurs.

 

Reduce the total amount of debt you are servicing; this is absolutely critical when you are trying to raise your credit score quickly.

 

There is a variable called your credit utilization rate; this is the total amount of debt you are carrying in relation to the total amount of credit that is available.

 

Credit Utilization Rate. Source: Experian

 

If you are almost at your limit, that is considered risky, and your credit score will drop.

 

When you reduce your debt, you benefit twice, first by the increase in your credit score and also by the money you will be saving by not having to pay interest on those loans.

 

Something that you can do is increase the total amount of credit you have available. This is something you should do with caution.

 

If you increase the amount of available credit by too much, you could be tempted to get yourself into serious debt.

 

Credit card debt is the leading form of high-interest consumer debt in Canada, the average Canadian is carrying over $20,000 in non-mortgage consumer debt, so it should come as no surprise that you could find yourself in a financially challenging situation.

 

Don’t be too hard on yourself

 

You need to moderate your expectations, so you don’t feel like you are under an incredible amount of stress trying to boost your credit score.

 

Stick with these suggestions, and you will see your score increase; just give it the time it takes.

 

If you need a car loan right away Click here to get pre-approved, we'd love to help!

 

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