Do you check your credit score often, maybe once every few years, or never? I thought this was an interesting question, so I hopped on to Instagram and asked. I did a poll.
Drumroll, please…
Financial Health Tip:
If you have good credit and no late payments recently, a good rule of thumb is to check your credit score about once a year. If you pay your bills on time, there should be no surprises and your credit score should be nice & healthy! By checking it once a year, you’ll be aware of any errors. We assume the credit-reporting system is flawless, but it’s not. Errors can happen.
For people actively trying to improve their credit score, checking once a month or every few months will keep you on track to meet your “credit score goal”.
What is a Credit Score/Report?
A credit score is between 300-900, the higher the better. When lenders look at someone’s credit, they review the report as well as the score. The report is a 2 or 3-page statement detailing a person’s credit accounts (open & closed), current & previous addresses, records of late payments…
Tips to increase your credit score:
Your credit score is fluid and changes every time a creditor (credit card, bank, loan-providers…) reports your debt. A credit score can go up or down, which is good news!! If your credit score is mediocre, you can absolutely improve it!
If you’re working at increasing your credit score, here’s a few tips:
No late payments! (ie. pay your bills on time) This is the biggest factor in your score!
Keep balance under 30% of your limit. If you have a $10,000 credit card, try to keep balance below $3000.
Pay your phone bill! Sometimes, people have a Rogers or Bell bill they forgot to pay. A delinquent phone bill will show up on credit report and mortgage lenders don’t like this. They will expect those accounts be paid off before approving the mortgage. I’ve seen this many times!!
Keep your credit cards to a minimum (like 2-3). Lenders can view lots of credit cards as irresponsible usage.
Maintaining a good credit score is the best way to ensure lenders will offer you the best products & interest rates.
Hope that's helpful!
Natalie