5 Tips to Help Improve Your Credit
Credit Improvement Tips in Saskatchewan and Manitoba
Your credit score is the fuel that powers your financial journey. Whether you're eyeing that dream car or saving for a home purchase, a healthy credit score opens doors to favorable interest rates and better financial opportunities. Continue reading below as our team here at Key Auto Group shares five tips that you can use to help boost your credit score and navigate the financial highway with confidence.
1. Pay Your Bills On Time
Prioritize paying bills on time as late payments can negatively affect your credit score. Set up automatic payments for your phone, utility and credit card bills to ensure you never miss a due date.
2. Diversify Your Credit Mix
Responsibly manage different types of credit to demonstrate your financial responsibility. Aim for a mix of credit types, such as credit cards, installment loans, and mortgages.
3. 30% Balance Rule
As a general rule of thumb, keep your credit card balances below 30% of your credit limit. By doing so, you can help accelerate the growth of your credit score, as well as reduce unnecessary spending.
4. Monitor Your Credit Report Regularly
There are a handful of reputable credit monitoring tools in Canada that can help you keep an eye on your credit score. Check your credit report for errors and promptly dispute any inaccuracies.
5. Strategically Open & Close Accounts
Practice careful consideration before closing credit accounts, as this can negatively affect your credit utilization ratio (CUR). Strategically open new credit accounts, focusing on your specific financial goals.
Remember, building a strong credit score is a marathon, not a sprint. By implementing these tips, you can gradually yield long-term financial benefits. Our automotive finance experts here at Key Auto Group understand the intersection of credit and car buying. Start your journey toward a robust credit score today and get in touch with us when you’re ready for your vehicle purchase!