Avoid making multiple credit applications. The more potential lenders inquire about credit scores in a short period of time, the increased negative effect it will have on the score.
(PRWEB) June 11, 2013
When looking at credit scores, it’s important to look at everything on it and ensure its accuracy. Leaving inaccurate items on a credit report could have negative implications on the mortgage rates when it's time to buy. If it is accurate, but the score is lower than initially thought, have a look at what has the negative influence and take actions to improve it. These tips from ComparaSave.com can help to improve credit ratings.
- Pay all of bills on time. Although not all bills report to the reporting agencies such as phone, utility, electricity and cable, there are others like cellular companies that do. Even small bills can affect credit scores.
- If possible pay bills in full each month before their due date. When this is impossible, pay off the minimum required amount before the due date.
- Any debts incurred should be paid off as quickly as possible.
- When using credit cards, keep the balance as far below the limit as possible and never go over that limit. The higher the balance maintained on credit cards, the harder it impacts the credit score.
- Avoid making multiple credit applications. The more potential lenders inquire about credit scores in a short period of time, the increased negative effect it will have on the score. However, it is wise to look at credit scores to ensure that it is accurate.
- It is important to keep one or two credit cards to help improve credit scores. Sometimes low credit scores are given due to lack of credit. By having a credit card or two, this will help build up credit rating.
It is important to report any incorrect information to the appropriate resources. By leaving it on the report, it will reflect poorly on the score. It will lower the chance of being approved when it comes time to make a purchase, especially a big purchase like a home. By maintaining good credit, It will help secure the best mortgage rates Canada lenders are offering.
ComparaSave.com is a digital marketplace dedicated to helping Canadians save money by providing the lowest insurance and mortgage rates, as well as credit card and holiday comparisons, from a network of over 40 providers. Launched by Insurance Hotline, http://www.ComparaSave.com has partnered with insurance companies and brokers, mortgage professionals, credit unions and other financial institutions to ensure consumers get a fast, free and easy-to-use service. ComparaSave.com is a division of Insurance Hotline.