How Can You Change That Low Credit Score?

Posted on Tuesday 02 August 2016


Suppose you find out you have a low credit score, you'll likely be surprised! How did it happen without you even being aware? The truth is that if you don't pay attention to your financial habits and work to keep your credit rating healthy, it will drop and you might not even know. It's murky waters out there, but you can save yourself from drowning.

Too many Canadians are hit hard when they realize they have a poor credit score. This is an indication that previous bad financial choices can come back to haunt you, ruining what was a great score. To prevent situations of this nature, many people tend to look toward some of the best websites for financial free tips. The tips below can help you avoid financial mistakes and help you to get your credit score back up where you need it to be!

Let's Get Started Getting That Credit Score In Shape


So, the first step to take is to become more proactive with your finances and your credit.  Understanding how to keep track of data like this can help you catch a suspicious transaction that has the potential of destroying your credit too. Paying careful attention to your finances will also help you better manage your financial stress. If you're an investor with a great credit score, you may be eligible to take substantial loans that you can leverage to start a project or purchase an existing business.

  1. If you carry a high balance on your credit card every month (even if you pay it off) it may work against you. This is because high credit makes it appear you rely on your credit card to survive month to month. Some have the idea that this builds credit, as long as there is a 0 balance carried over. It's simply not true. Don't exceed 40% of your available credit.
  2. One of the biggest mistakes an individual can make is applying for too many credit cards. Every time you apply for a credit card, you have the potential of denting your score. Whether you work in a corporate office or make money as a blogger, having high credit makes you look needy and might steer good creditors away. Best to check with a professional as the credit card industry is different than the payday loan industry. Even if you apply for a loan with bad credit, you still may get the loan, especially with a lender such as My Canada Payday.
  3. Sadly, some Canadians can find their accounts sent to collections without ever having any idea of it. Those accounts which are more prone to this happening are medical. It might not seem fair, but it happens almost daily. Much of this falls on the fault of insurance companies not paying claims on time, however consumers are the ones who suffer financially.
  4. You need to consistently check for errors on your credit report because they do happen. If you find something that is concerning, or which you know is not accurate then you should make the proper contact so that the issue can be resolved and your credit can be repaired.

Just these 4 simple practices can help to make a difference in your financial habits and certainly your credit rating. We all make mistakes, it's natural. It's how you approach your mistakes that change your life. Start building a good, solid credit history today and pay attention to your own financial habits as well. Slowly but surely you'll see that score begin to rise!