While maintaining a good credit score is essential for your financial future, few Canadians know their credit score. A better score will allow you to obtain loans and better interest rates.

However, there is no single or quick way to improve your credit score. Be careful with companies that offer to improve your credit score quickly and charge you for this type of service.

You should contact your provincial or territorial government to find out about the rules governing this type of corporation before entering into a contract. However, instead of using this type of company, you should contact one of the credit bureaus to find out if the information on your file is accurate.

Here are some tips on how to improve your credit score:

1. Pay your bills

Always pay your bills on time. Although the payment of utility bills, such as telephone, cable and electricity, is not included in your credit report, some cell phone companies may report late payments to credit reporting agencies, which could affect your score.

Try to pay your bills in full before the due date. If you cannot do so, pay at least the minimum amount due as shown on your monthly credit card statement. If, however, you do not make a payment, it is recommended that you contact your creditor to find a solution.

2. Try to pay off your debts as quickly as possible.

Do not exceed your credit card limit. Try to keep your balance well below the limit. The higher your balance, the more your credit score suffers.

Reduce the number of credit applications you make. If too many potential lenders inquire about your credit in a short period of time, your score may suffer. However, the fact that you are requesting information about your own credit report has no effect on your score.

Make sure you have a credit history. You can acquire a credit history by using a credit card. You may have a low score simply because you have never taken out loans and have demonstrated your ability to repay them.

Try to restore your credit score by applying for a "secured credit card". To obtain a secured card, you must make a deposit with the credit card issuer. Usually, your credit limit is a percentage of your deposit. If you always pay your secured credit card account before the due date, you will establish a credit history.

3. Do not use the maximum credit

Avoid using as much as possible the maximum credit you are given. By regularly exceeding half of your credit card limits, you may experience some financial concerns. This type of problem is usually due to bad spending habits that you should absolutely fix before it is too late. Beware of compulsive purchases and budget accordingly.

4. Ask someone close to you to help you

To restore your credit score, you may ask a loved one with a good score to add you as an authorized user on their card. This way, you can start building a history on your behalf. This is also useful for those who do not have a credit card because of their age, for example.

5. Ask for a copy of your credit report

It may be very beneficial to request a copy of your credit report and analyze the report to better understand your situation. Note that if you have already tried to restore your score without success, you should seek professional advice.

At Syndic.ca, we offer a personalized service to our clients to help them regain their financial health. Contact us today.