There are several ways to improve your credit score. If you are just like many Canadians who are looking to improve yours today, look no further! Here is a list of four ways that can help boost your credit score.
Pay on Your Bills on Time
You can improve your credit score by making all your recurring bill payments on time. When you miss or fail to pay your bills on time, your credit score goes down. It’s fairly simple to correct the habit of making late payments. You can begin with the smallest step which is by setting up automatic transactions from your credit card or debit card with your service providers. You can avoid defaulting in payments by setting it up. Especially if it’s for recurring bill payments.
By making payments on time, you will certainly see an improvement on your credit score. If you have a tendency to forget, automatic payments will help tremendously. Most services providers have automatic payments available for their customers. You can set that up by yourself on their website or contact your providers directly.
Pay Above the Minimum Payments on Your Credit Card
If you own a credit card, chances are you know the minimum payments that you need to make on a monthly basis in order to avoid paying high interest rates. Some banks allow a minimum payment as low as $20 per month.
However, it is highly recommended that you make the above minimum payment requirements. This boosts your credit score because according to the Canadian credit bureau, you are paying off your debt faster. If by chance you are able to make higher payments for the upcoming bill, try and repay the money you owe in full rather than meeting minimum payments.
Settle Any Outstanding Debts
If you have outstanding balances with a lender or if a collection agency is now taking care of your loan, settle the debt with them as soon as possible. You can contact your lender and ask that you make payments in increments or in a lump sum. As long you pay it off, that’s all that matters. Some lenders are open to negotiating payment methods. If you want to boost your credit score, you can begin by settling any existing debts.
Review Your Credit Report
Mistakes can happen at the credit bureau and reviewing your credit report with reporting agencies like TransUnion, or Equifax will help a great deal for boosting your credit score. You’re able to have access to all your loan history and if something isn’t up to par with your current situation, you need to report it immediately. A simple blemish can be corrected once you make the agencies aware and you can send them a letter contesting the report. By disputing any discrepancies found, the credit bureau will make the changes that they see fit once provided with your proof and from there, they can apply an accurate credit history. This will ultimately give you a better credit score.
Takeaways To Boost Your Credit Score
Another key takeaway from reviewing credit reports is to take into account possible fraudulent loans. The moment you noticed that there was a loan taken under your name with a bank that you never visited, that is an immediate red flag. You must report it immediately to the authorities. You can contact Canada’s two credit reporting agencies, Equifax and TransUnion in order to report the fraud and despite your score. Ask the agencies to place a fraud alert on your file. Ask for copies of your credit report, review them and report any incorrect information. After filing a report, you can contact the Canadian Anti-Fraud Centre by their toll-free number 1-888-495-8501 or by visiting their official website at www.antifraudcentre-centreantifraude.ca/report-signalez to signal the fraudulent action.