If your credit score has been impacted by missed payments, high credit card balances, or other financial mistakes, it’s possible to repair it with time and the right steps. Here’s how you can improve your credit score:
- Review Your Credit Report:
Your credit report contains detailed information about your credit history. Regularly reviewing your report allows you to spot any inaccuracies or errors that may be dragging down your score. You’re entitled to one free credit report per year from each of the major Canadian credit bureaus, Equifax and TransUnion. - Dispute Errors:
If you find errors on your credit report, such as incorrect late payments or balances, dispute them with the credit bureau. Correcting these errors can immediately improve your credit score. Be prepared to provide supporting documentation if needed. - Make On-Time Payments:
Payment history is one of the most important factors that affects your credit score. Ensure that you pay all your bills and debts on time, including credit cards, loans, and utility bills. Setting up automatic payments or reminders can help you avoid missed payments. - Reduce Your Credit Utilization:
One of the fastest ways to improve your credit score is by reducing your credit utilization. Aim to keep your credit card balances below 30% of your available credit. Paying down existing balances and avoiding maxing out cards can have an immediate positive effect.
Tip: Consider working with a financial advisor or debt counselor to create a personalized repayment plan that suits your situation.
