How To Improve Credit Score

Once again we're getting some advice from Taya Weiszhaar to help save money not only on mortgage rates but insurance costs. How? By finding out what your credit score is and then taking some steps to improve it! Taking control puts a smile on your face!

Taya's advice goes like this:

Pay the minimums and simplify
“The most important factor in rebuilding your credit is your payment history. Make sure that you are making your payments in full and on time. If you can’t afford to pay the entire balance, then at least pay the minimum,” says Jeffrey Schwartz, executive director of Consolidated Credit Counseling Services of Canada Inc. Mr. Schwartz also recommends setting up automatic repayments with your lenders as this will help alleviate the worry that you might miss a payment or accidentally pay the wrong amount.

Chip away at debt
The second highest percentage in calculating scores takes into account amounts you owe. If you’re overextending yourself with a high debt-to-credit ratio, a potential lender may look at this as unfavorable. Along with reviewing the debt-to-credit ratio of outstanding loans and making a plan to reduce debt loads, lowering interest on high-interest cards should also be considered. The Financial Consumer Agency of Canada is a great resource for comparing the features and rates of various cards, or try This will make your debt load slightly easier to manage and potentially free up some additional money to put toward debt.

Ask for help
There are also a number of not-for-profit counseling services available for those of us looking for a plan to alleviate debt and improve credit scores. A free consultation with a non-profit such as Credit Counseling Services of Canada Inc., or Credit Canada could arm you with a specific debt repayment plan and tactics to improve your score and your peace of mind.

The bright side for those with less than desirable credit is that it's possible to boost your numbers if you have a grasp on your finances and you know how credit scores work. “It’s going to take some time, though. It took time to get into the problem so it will take some time to get out of the problem,” Mr. Schwartz says.

Ms. Sanders agrees: “It took a couple of years to get my credit to where I wanted it to be. My number will now work to my advantage. You know, a lot of women are happier with lower numbers in most situations – weight, age, dress size, etc. But, when it comes to your credit score, the higher the number, the better!”

TurnersTips advises that if you have a strong credit score then be sure to bring this up with your agent or broker. There are companies that give special rates to high scoring customers. If your credit score is low then ask your broker if the company you are with is the best for rates. Your first choice could be a company that does not build in credit score as part of the rating system for your home or auto insurance.