That credit score is everything, isn't it? For so many Canadians, it is like a ball and chain, forever holding them back from lower interest rates and better financing opportunities in general. Your
can keep you from landing a great job. Now, while this doesn't seem fair, it's just how things work in some parts of the world. Within Canada, and
all across British Columbia
--a poor credit score certainly spells disaster. While it isn't easy to get that credit score raised, there are now new and guaranteed ways of doing so. You can allow 2016 to be the year you're willing to put forth that 150% effort. Once you get your credit score healthy, you'll be amazed at the rewards and benefits which come your way.
Those with the best credit scores are awarded low interest rates, exceptional mortgage loans, great car loans and so much more. There are even more perks to discover when you get that score in check, but remember, it didn't get poor overnight. This means: don't think you're going to see a transformation in 24 hours either. However, if you follow these tips you're going to make headway and reach your goal faster. So, let's get started!
Tips You Can Rely On To Raise Your FICO Score In 2016
Now, if you're looking for some immediate relief, there are three tips that are outside of those traditional moves that enhance and improve your FICO score overtime. You might know about this and you might not, but we did think they were worth sharing. The first of these three is all about how you are using your credit. You should never exceed more than 40% of your available credit limit, and if you do, you should at least pay half of the balance due at the end of every month. Also, if you have other credit cards, this will open up more credit for you, and if they are used wisely you'll build up a solid credit history. Just use them for what they are intended for--
improving your FICO score
Another quick fix is checking your report for errors. Many Canadians have errors on their credit report, and many don't even know about it. This can happen from identity theft, to a charge-off, to a simple clerical error. You can always dispute an item on your credit report and give your side of the story. Further, if you see small items that need paid off--why not do it? There are so many walking around with items on their report that could easily be improved. You have to put in the time and effort if you want to improve your FICO score quicker than normal!
5 More Common Tips Toward Raising Your Credit Score
Remember, those tips mentioned above almost always raise your score 2 to 3 points, but the following strategies take a bit longer and a little more work. Let's get started:
Tip 1: Pay more than what you have to on any credit card or loan payment you might have
This illustrates a trustworthy consumer. Professionals will view you as someone they can have faith in and who is more than honest. You're depicted as someone who takes their debt seriously.
Tip 2: Pay off your card with the highest credit limit
If you've used more than 50% of the credit on a specific card, and it happens to be a high-end one, do your best to pay it off totally. This kind of habit shows that you're not living on credit, but only building up your credit. In other words, lenders will see you have disposable income to pay your debt.
Tip 3: Sign on as an authorized user for your dependents
If you have a teen who is attempting to build credit, signing with them can not only help them build credit, but it can help you repair your own minor mishaps. As long as they are responsible, and pay their bills on time, this will bring some positive reinforcement for your own credit.
Tip 4: Did you know you could make more than one monthly payment on your credit cards
Yes! You can pay twice, or even three times a month if you want to. The more you pay on these forms of debt, the better your credit report will look. Don't place yourself under financial duress to meet a goal like this, but if you can--definitely do so!
Tip 5: Try to get rid of unpaid collection items
There are more Canadians who are facing FICO drops due to issues like these versus late payments and only paying minimum payments on debt. If you can find a way to consolidate collection debt it might help you get rid of it sooner, thus improving your score.
If you follow even just a few of these tips you'll see improvements in that FICO score sooner, rather than later! Make 2016 the year you begin tackling debt and getting your finances on track.