A credit score is merely a numerical expression of a person’s ability to pay off his credit the analysis of which shows his creditworthiness. It is a number that varies from 300 to 850; the higher the score, the better is the borrower’s condition.
As per one of Canada’s major credit bureaus, the average credit score amongst Canadians of various age groups has fallen drastically. Canadians of the age-group of 18-25 years have an average score of 692 whereas the same of 65 above, shows an average score of around 745. You must look for bad credit help if your number falls below 300. If you need bad credit help in Surrey, we, at debtconsolidationbc.com, offer you the best credit proposal and debt management services to lessen your burden. Now, have a look at the ways of improving a bad credit score.
1. Check your payment history
Payment history is the most prominent factor that affects your credit score. You can improve it in various ways most important of which is making your credit payments on time. You must pay it even if the bill is disputed, you can claim the refund later though. If you are unable to pay the whole borrowed amount, pay at least the minimum amount. If you are unable to pay that as well, contact your lender.
2. Use your credit judiciously
It is not wise to use the whole of your credit availability because that eventually lowers your credit score. Lenders can see you as trouble or risk even if you pay in full and on time. It is advisable to utilize 30-35 percent of your credit availability. If required, you can have a higher credit limit and use it accordingly.
3. Keep a check on the number of your credit applications
Too many credit applications impose a negative impact on the lenders. It may give them an impression that either the borrower is spendthrift, runs short of money, or seeks credit urgently. This is also treated as credit checks. Hence, the higher the number of credit checks, the lower the credit score is. This is an essential aspect when it comes to debt management services.
4. Improving your credit mix
Credit mix poses a significant impact on your credit score. Different types of loans in your account show you are capable of handling multiple types of accounts or loans. Hence, improving your credit mix leads to improvement in your credit score. The only thing you need to consider is the timely payment of all your lines of credit.
5. Don’t switch off your credit account
The length of your credit history also determines your credit score. Hence, the more duration of your credit account is better for your credit score. This doesn’t happen overnight. You need to pay off your credit timely for years, doing which ultimately strengthens the length of your credit history.
Tyler Gregory once said, “If you don’t take good care of your credit, then your credit won’t take good care of you.” Hence, if you pay off your credit timely, it is a boon for you, or else, it may put you in trouble. A good credit proposal plays an utmost important role in this. You shall contact debtconsolidationbc.com for the *best credit proposal in surrey*.