Christian Debt Recovery

National Debt Per Capita Canada

October 2nd, 2007 |

Author: Gavin

Maintaining Good Credit Scores in Canada

Canada enjoys the prestige of being one of the wealthiest nations in the globe. Its standing shows in the country’s per capita income which is very high as compared to others. Their name is included in the world’s top 10 trading nations. Amidst all these however, none of its citizens are immune to bad credit. Our credit scores are our own responsibilities and we can’t just entrust it to anyone. Maintaining our credit scores is a full time job that requires discipline and diligence in our financial management. There are many ways that we can do on a daily basis to help us keep our credit rating high. You can be rest assured that all your efforts will pay off because those with good credit scores enjoy many perks like lower interest rates on loans and credit cards.

It should all start with education. You can’t just expect your credit score to be high without you knowing anything about it, what goes into it, and what you are doing that is affecting your score. People that know more about what goes into their credit scores are those that are able to keep high scores. Know that not everything that has to do with financial matters has a bearing on your credit score like simple utility payments. The usual pieces of information that are used to compute your credit score are recent credit, level of debt, mix of credit, credit age, and payment history.

Be sure to watch your credit report. When you are careful about your credit score, it doesn’t necessarily mean that others will be too. Credit reports may sometimes contain erroneous data that may lower your credit score. Check all entries carefully and ensure that everything is accurate.

Having new and more credit cards may sound tempting to many people. What many don’t know is that every time they apply for a new credit card account or loan, their credit score takes a small beating. Credit inquiries make up a tenth of your credit score so when you apply for new credit, you lose some points. Your credit age, which is 15% of your credit score, is also lowered because of new credit.

Manage your debt wisely and do your best to keep your credit balances low. By keeping your credit at around 30% of your limit, you gain more chances to maintain your good credit score. Maxing out your credit balance lowers your score.

Also, don’t just close old accounts. When you close old credit card accounts and retain newer ones, this places less weight on your credit age and causes your credit score to drop.

Lastly, be prompt on your payments. Pay all your bills, not just loans and credit cards, on time. Although not all bills are reported to credit bureaus, they still can reflect on your credit report if you are late on payments.

Remember that these disciplines should be done on a daily basis. Sooner or later, they can become habits and when that happens, you can ease through life having a good credit score and enjoy the many perks that it has to offer.

About the Author

Rachel Schwartz is the Marketing Manager of BHM Financial – one of the most trusted names in the bad credit loan industry. This company may be able to help you reach your financial goals. Please visit our Bad Credit Loans website or our Blog and find out today.