When qualifying for mortgage rates and products, the better your credit score is, the more likely you are to be approved. If you are thinking about buying a home, you are likely trying to get your credit score as best as it can be. Not to worry, I’ve got you covered! Here are 5 tips to help increase your credit score:

  1. Improve Your Utilization Rate

When it comes to your credit score, utilization counts for about 30%. You can improve on utilization by spreading out your spending on multiple cards (if applicable) and by paying your bill before the due date. This ensures you are not maxing out one card (which will negatively impact your score) and will keep the utilization rate lower amongst all of your credit cards.

  1. Pay Attention To Due Dates

Paying on time is one of the best things you can do for your credit score. While it’s not always possible to pay on time, paying as soon as possible is crucial to keeping your credit in good standing. Some online payments do not get processed right away, so try your best to pay one or two business days ahead to ensure you are paying on time!

  1. Pay As Early As Possible

If you pay your balance early, the credit bureau will have barely anything to report on. So, the less amount that gets reported to the credit bureau, the better! If you can pay early, especially if you have a low limit, it will be better for you in the long run!

  1. Use Your Back-Up Cards!

It is common to have one or even two backup credit cards “just for emergencies”. These cards that are not being used are not doing anything to help your score. If you can make little payments with the card and pay it off immediately, it can have a very positive impact on your credit score. Try it out!

  1. Check Your Credit Identity

Sometimes errors can show up when your information gets reported to the bureau. Little mistakes like showing you made a late payment when you actually didn’t can add up fast! Check with your financial advisor to make sure your information is accurate and up to date!

Want to learn more about improving your credit score or the process of purchasing a home? Book a call with me today!

Stay In The Loop

Our wealth of knowledge and expertise, conveniently delivered directly to your inbox. Stay up-to-date on the latest in real estate and enter the market with confidence.

Be First To Know About The Latest Toronto Real Estate News

In this market, you have to plan ahead. Sign up for our newsletter to stay up-to-date on what’s happening in Toronto real estate.

  • This field is for validation purposes and should be left unchanged.