Frequently Asked Questions
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FILE UPDATED TIME 19/12/2006 10:24:31 AM
TOTAL READ COUNT 2989
How can I improve my credit rating?
There is no single or fast way to improve your credit rating. Watch out for companies
that offer to improve your credit history quickly, for a fee. Before you sign a
contract with them, you should contact your provincial or territorial government
to obtain information about the rules that govern these types of companies. Instead,
you should contact one of the credit-reporting agencies to check if the information
in your credit file is accurate.
Here are some tips for improving your credit score:
- Always pay your bills on time. Although the payment of your utility bills — such
as phone, cable and electricity — is not recorded in your credit
report, some cellular phone companies may report late payments to the credit-reporting
agencies, which could have a negative effect on your credit score.
- Try to pay your bills in full, by the due date. If you aren't able to
do this, pay at least the required minimum amount shown on your monthly credit
- Try to pay your debts as quickly as possible.
- Don't go over the credit limit on your credit card. Try to keep your
balance well below the limit. The higher your balance, the greater the impact
on your credit score.
- Reduce the number of credit applications you make. If too many potential lenders
ask about your credit in a short period of time, this may have a negative effect
on your score. However, your score does not change when you ask for information
about your own credit report.
- Make sure you have a credit history. You can build a credit history by using
a credit card. You may have a low score if you don't have any record of
owing money and paying it back.
- Try to re-establish your credit rating by applying for a "secured credit
card". A secured card is a card that you obtain by depositing a sum of
money with the credit card issuer. Your credit limit is usually a percentage
of the amount you deposit. You can build a credit history by making all of your
secured credit card payments on time.
Classification of this FAQ:
||Credit rating/Credit bureaus