There are many reasons why you may want to learn how to improve your credit score.
Whether you’re looking to make a large purchase or simply working on improving your credit history to put you in good standing—learning how to build credit fast is essential.
Once you’ve got a basic understanding of the credit score ranges and what creditors consider a good and bad credit, you can start working on building your credit.
Your credit score is a number that finance companies use to measure and determine the likelihood that you will pay back a loan on time. It is based on your credit history, the number of credit lines that you have, how much debt you carry, your repayment history and other factors.
In Canada, credit score is broken down as follows:
- 660 to 724 is good
- 725 to 759 is impressive
- 760 and higher is exceptional
Why are credit scores important in the modern world? Understanding how to build credit fast is essential to your financial health and well-being.
By taking these steps to improve your credit score, you will continue building your credibility and enjoy the many benefits that come with an excellent score. Check out this great article that has many tips for increasing your credit score.
Access and evaluate your credit report
A credit report is a detailed summary of your credit history. The first step to improving your credit is to know how well you’re currently doing and dispute any inaccuracies that you may find. You can request a free copy of your credit report from Equifax.
Pay your bills on time
Your payment history makes up 35% of your credit score. Paying your bills on time will help improve your credit history.
Reduce your credit utilization
Credit utilization refers to how much credit you’re using compared to the limit. As a rule of thumb, you should only use about 30% of your available credit. If your credit card is maxed out, repay some of that debt or increase your spending limit.
Keep credit inquiries at a minimum
Credit inquiries are worth 10% of your overall score. Hard credit checks occur when lenders send an inquiry to the credit bureau to access your report. More inquiries mean a higher amount of loan applications, which can reduce your credit score.
If you need to get a quick loan with bad credit, consider iCASH, a licensed Canadian lender that will provide you with up to $1,500.
To learn more about iCASH and how you can get approved and funded in three easy steps, visit iCASH.ca.