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Simple steps to begin improving your credit score

Simple steps to begin improving your credit score

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Your credit score is made up of a selection of data points covering many years of your life. It includes your debt and payment history, level of current debt and a whole lot more. Improving your credit score doesn’t happen overnight but with some practical, actionable steps, you can begin right away.

Car Nation Canada works with people from all backgrounds with all kinds of credit scores. We help access competitive rates from across the industry and have some select providers that delivers top class financial products at reasonable rates. Talk to us to learn how we can help you.

Rebuilding your credit score
If you do want to repair or improve your credit score, there are some practical ways to do it.

Ontario election register
A simple change can be to make sure you are on the Ontario election register or your local state register. As your presence on registers has an impact on your score it’s a quick win that should begin that upward trend. While not massive in its impact, registering is fast and very easy so makes perfect sense.

Check your file for errors or omissions
Systems make mistakes as well as people and your score may have been impacted by a simple clerical error or omission. Get a copy of your file from all of the institutions and check it carefully. If you spot an error you can contact the institution to request it be corrected. You may need to prove the error but if you can, it is something else that can make a big difference.

Keep paying on time
Your payment history has a huge impact on your credit score as it tells any future lender how much of a risk you are. Always pay on time and your credit score increases to reflect that. Miss payments without good reason or prior authorization and your score will be impacted as a result.

Pay down existing debt
Debt is all about affordability. Your score reflects your income and how much debt you currently have. It does not take into account extra income or expenditure like a normal credit assessment. If you have a lot of debt, you will be better off waiting until the amount is reduced before applying for more. There is no golden number but the lower the percentage of debt versus income you have, the more likely you are to be able to access credit.

Pick a card, any card
So far we have talked about repairing your credit score. But what about if your score is low because you have no history? Take a credit card. Your options may be limited at first but that doesn’t matter. Buy gas, buy groceries or whatever and always pay the outstanding balance in full and it doesn’t matter how much interest they charge. Servicing a credit card will help build a profile which will be used in your credit score.

Don’t stress over the numbers
Finally, don’t worry too much about your credit score. Sure it has an impact on the type of credit and the interest charged but if you need credit, you can usually find it somewhere.
If you’re after a great auto loan with very competitive rates, Car Nation Canada can help. Contact us to learn more.

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