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How to ace your credit score 

General Jennifer Brophy 3 Feb

How to ace your credit score 

Whether you’re trying to increase your credit score to meet CMHC’s new minimum requirement of 680, need to improve poor credit, or are just aiming for the perfect score of 900, here are a few tips to get you closer to your goal: 

 

  • Try to use less than 35% of your available credit. It’s better to have a higher credit limit and use less of it each month or split the balance between three cards. 
  • Don’t close your unused accounts, closing accounts can actually cause you to lose that overall credit lowering your score.
  • Have a mix of different types of credit. (credit card, car loan, line of credit)
  • Review a copy of your credit report for mistakes or signs of identity theft.
  • Consider a secured credit card if you’re building from the ground up.
  • Pay bills on time and in full, do not carry a large amount of unpaid debt.
  • Control how credit checks impact your credit by limiting the number of times you apply for credit, get quotes from different lenders within a two-week period so your inquiries will be combined and treated as a single inquiry for your credit score.
  • If you are a homeowner consider refinancing your home to pay off debt.

Not all credit blunders are created equal, your bill-paying history makes up 35% of your credit score and is the most important factor. The amount owed makes up about 30% of your credit score. The longer your credit history is the better contributing to 15% of your credit score. Recent activity on your credit history, including new accounts and inquiries make up for approximately 10% of your credit score. The variety of the credit accounts you have account for  remaining 10% of your credit score. With the right approach, you can start seeing significant improvements in your credit score in as little as 30 days.