It is important to have good credit in our society as it is required for most things, such as booking a hotel room or an airplane ticket.  As well, most people can only finance big items (ie: home, car, etc) with the assistance of credit.  The following are easy tips for anyone seeking to improve their credit:

  • Obtain a copy of your credit report.  You can obtain a free report from Equifax.  Ensure that the information on your report is accurate and fix any errors that appear.  You can correct the errors by contacting the creditor directly and/or contacting the credit-reporting agency to have them investigate and fix the error.
  • Ensure that you pay your bills in full by the due date. If you aren’t able to do this, pay at least the required minimum amount when it is due to maintain your credit rating. If you miss the due day, this will have a negative impact on your credit rating. 
  • Maintain your outstanding balances at a minimum level.  Try to keep your balance below the limit. Higher levels of debt, will impact your credit rating.
  • Don’t apply for to many credit cards/loans in a short period of time.  If too many potential lenders inquire about your credit over a short period of time, this will have a negative effect on your credit rating.  
  • It is important to build a credit history; as such, it is smart to keep older credit. If you want to payout your loans or cancel your credit cards, it is best to keep one to provide a history to future lenders.
  • One great way to re-establish your credit history is by using a secured credit card. Ensure that you make the monthly payments on the due date.   A prepaid credit card is not a secured credit card as it does not report to the credit bureau.

On an on-going basis, it is always a good thing to obtain a copy of your credit report, every few years, to ensure that the information on your report is correct.