How to Improve Your Credit Score

How to Improve Your Credit Score

“Is it harder to secure a credit card or car loan because your credit score is low?” How to get a better credit score is an issue on the minds of many Fort McMurray area drivers, and River City Hyundai is here to help. Raise your credit score today by following these steps from our dealership in Edmonton.

Tips to Increase Credit Score: Check Your Credit Reports

Mistakes do happen and can impact your credit score, even beyond more serious issues like identity theft. So when you ask how to boost my credit score, or ways to raise credit score, make sure your reports are accurate first. Obtain your credit report from one of the two major credit bureaus: Equifax Canada and TransUnion Canada. Learn more about receiving your free credit score from the Financial Consumer Agency of Canada.

Tips to Increase Credit Score: Assess Your Debts

List every debt you owe so you can get a handle on what your obligations are, exactly. Two major factors determining your credit score are:

  • Debt to credit ratio: How much available credit you have vs. your balance. Ideally, you want to keep your credit card charges under 30 percent of the available balance every month.
  • Number of cards with balances: The more cards with balances, the lower your score.

Tips to Increase Credit Score: Create a Payment Plan

Attack your debt with a repayment plan that includes paying down debt in collections, eliminating small balances on cards, and working to pay down larger debts.

Tips to Increase Credit Score: Open a Credit Card

Your credit score could also be low because you simply haven’t had a loan or credit card before. Opening a card in Cold Lake can help establish credit, as long as you keep under the 30 percent balance and pay your bill on time every month. One easy way to improve your credit score is to pick a recurring monthly charge and pay it with your credit card. Just make sure you set the money aside to pay the balance off when the bill arrives.

Can’t qualify for a regular credit card? Consider a secured credit card. This type of card has a small limit and usually requires an initial deposit of up to a couple hundred dollars to open.

Tips to Increase Credit Score: Build Your Credit with Time

Your credit score is built over time. So if you’re just starting out, one way to improve or add to your history is to become a user on a family member’s account. As long as they have paid their bills on time, it will reflect well on you. Just make sure both parties have a clear agreement about who actually gets to use this line of credit and how payments will be handled.

Tips to Increase Credit Score: Minimize new Credit Applications

If you’re using new cards or loans to improve your credit score, make sure you’re still careful about applying for a limited amount. Lenders performing hard inquiries about your credit can impact your score for up to a year if you apply to too many.

Find Out More Ways to Raise Credit Score at River City Hyundai

Need more advice to help you get a better credit score? For more tips to increase credit score, contact us or our finance team at River City Hyundai. Our credit experts can walk you through the process of how the car loan approval process works and answer any additional questions in Edmonton!

Sales Hours

(780) 371-3700

Service Hours

(780) 371-3725

Parts Hours

(780) 371-3727

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