Simple ways that will improve your credit score

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One of the most important factors that will determine whether or not your mortgage loan will be approved is your credit score. Even though the credit score is not exactly something that can be improved in a heartbeat, there are still a few things that you can do to improve it and maintain it within that ideal rate of 30% or lower. You can always ask your Kemptville mortgage broker for additional advice, but these are the main things that you can do to have a better credit score:

Always pay your bills on time

Needless to say that the only way in which you can prevent your credit score from getting higher is to make sure that you never miss a deadline when it comes to paying your bills. If the main problem you have is remembering to actually pay them and not necessarily the financial aspect, you should make a calendar especially for your bills. This way you will know exactly when you need to make a payment, but always try not to leave anything on the last possible moment, because you never know what could come up.

Leave resolved old debt on your report

Not all old debt is bad if you have taken care of it properly. Even though negative items are usually bad for your score, good debt, the one that was properly handled and paid in time is actually good for your credit, because it shows that you are a reliable person who can handle a serious situation. So don’t rush to erasing that history from your credit reports as soon as you have paid your debts, because it may actually help you along the way.

Don’t keep too many credit cards

Many people are tempted to believe that having several credit cards will allow them to have a better control over their finances. However, charging $20 with one card and $50 with another, rather than using only one card to pay for everything can actually damage your score. So pay all these small debts and stick to only one, maximum two credit cards that offer you an advantageous interest. This is one of the most efficient ways of improving your credit score in the long run.

When you take these three steps into account, you will soon realise that your credit score is much better than it used to be and you did not even had to make too many efforts to obtain this achievement.