The Quickest Way to Increase Your Credit Score
The Quickest Way to Increase Your Credit Score
Your credit score in 2022 will help determine if you are approved for a home loan, auto loan, or credit card in Canada. Good credit is also a requirement to getting approved for just about any loan or line of credit. You can look up your current score by visiting AnnualCreditReport.com and requesting a copy of your credit report from all three bureaus - Equifax, TransUnion, and Experian - for free once per year.
So why do you need a good credit score in 2022? Here are 7 reasons your credit score is important to have in Canada.
Did you know that the quickest way to get a major loan for new appliances, furniture, or electronics is through your credit card? Many of Canada's big banks are only too happy to approve people with good credit scores for a higher line of credit limits so they can charge the maximum they can on their new appliances, furniture, and electronics purchases.
Do you need a personal loan or line of credit for debt consolidation? Most banks will only approve those with good credit scores for these major loans as well. If you do not have good credit, you may be forced to go the route of unsecured loans and pay much higher interest rates.
Car dealerships in Canada require a strong credit score when buying a new or used vehicle. Those with poor scores get stuck paying high-interest rates that can drive the price of their monthly payments through the roof. Those with good or great scores pay less each month for their vehicle and end up making far larger purchases over time.
The real estate market in Canada is red-hot and securing a home loan with anything less than great credit is next to impossible. If you want to increase your chances of getting approved for that dream home, then you need a strong score as well.
In Canada, cell phone providers use your credit score as part of their application process. If you have good credit, then your chances of getting approved for the latest and greatest phones is much easier. If you do not, then consider looking at low-interest balance transfer cards to help boost your score.
If you need utility services like electricity, phone lines, or internet, you need a strong credit score in Canada. Many utility companies in the Great White North only use your credit score to determine if you are approved for services or not.
Your high credit score will also help when it comes to getting approval for a new home phone and internet service. Those with good credit get their new services approved within minutes while those without must wait days for an answer.
If you need a quick and easy way to boost your score, then consider taking these six steps:
This is the first step you should take when checking your credit score. By requesting a copy of your credit report from all three bureaus, then reviewing the information closely, you can quickly determine if there are any errors that will hurt your score or not.
New loans and lines of credit can quickly lower your score as they show that you are taking on too much debt at a single time. Those with good credit scores do not fill their lives with new debt every month, which means they should avoid this from day one.
Your goal is to increase your available credit, which will allow you to show creditors that you are the type of person who can responsibly use their money. Those with good scores can handle large loans and lines of credit because they have proven they are responsible enough to use them over time.
Late or missed payments are what drop people's credit scores the quickest. If you show that you are responsible with money by paying all of your bills on time, then you will be rewarded with a higher credit score over time.
If you max out your credit card each month, then you need to take steps to lower your total available credit as soon as possible. Those with good or great scores owe less than 30 percent of their available credit at any given time, which means there is always room for more purchases and loans.
Every time you apply for a new line of credit, such as a home loan or credit card, it is recorded on your credit report and slowly lowers your score. By avoiding this from day one, then you will be able to avoid having too many loans and lines of credit at any given time.
The quickest way to increase your credit score I 2022 is by following the six steps we've outlined. By requesting a copy of your credit report, opening up a line of credit or secured credit card, and paying all of your bills on time, you can quickly see an improvement in your score. Remember that avoiding new loans and lines of credit will also help improve your score over time. So if you are looking for a quick and easy way to boost your credit score, then consider taking these simple steps today!
