Five Tips To Help Increase Your Credit Score

Five Tips To Help Increase Your Credit Score

Author: Canadian Tailored Mortgage Solutions | | Categories: Debt Consolidation , Mortgage Agent , Mortgage Broker , Mortgage Renewal , Mortgage Services

Five Tips To Help Increase Your Credit Score.webp

When it comes to mortgage agents, you have to make sure you are working with someone you trust. One of the challenges that many people faced was that mortgage agents would provide them with information and schemes based on what they thought made sense without understanding their situation.

One of the challenges we were facing through the pandemic was that finance companies were not looking to provide mortgage options to customers because people were unsure about payments. The job market was unstable, with many pushed out of work, which made the process quite challenging.

We work with clients to make sure they get the best deal after sitting them down and understanding their situation. We understand their requirements, review their finances to make sure they can pay the installments, explain why one option is better than the other, and make sure they get what they need. We are always open to making changes to the deal as long as it makes sense to all the parties involved.

One of the factors assisting people in getting better deals on their mortgages was their credit scores. There are various processes they can follow if they are planning on improving their credit score, and we thought we would mention some of them because we realized that many people did not know them.

Tip #1: Make your payments on time
If you can’t afford to pay off the entire balance every month, ensure you are at least making the minimum payments on time. Credit cards come with a basic amount that has to be paid on time, and delays can ruin your credit score. During the months where you can afford to make larger payments, it might make sense to pay off the entire bill. Before approaching the due date, make sure that you have the payment amount ready if it automatically debits from your bank account.

Tip #2: Keep your credit card utilization low, ideally under 50-30%
If you are close to the limit on a card and can’t afford to pay it down right away, try getting the limit increased to help bring down the utilization. Credit cards with most credit card institutions are very flexible, and there are chances that people can make as and when needed, if they are coordinating a process. They can always increase or decrease their limit based on their expenses or if they feel like they would not be able to stop spending if they have a high limit.

Tip #3: Have a range of different types of credit
When it comes to getting credit, there are various types of credits like credit cards, lines of credit, car loans, etc. If you work with a range of credit options, you get to pick and choose what makes sense and what does not, especially when making purchases and choose one over the other, depending on what’s most beneficial.

Tip #4: Don’t apply for too much credit at once
Give yourself a waiting period between each new application to ensure it’s not negatively affecting your score. If you use a lot of credit unchecked, you could end up having a negative effect of the same, so it makes sense that you have checks that you put in place.

Tip #5: Make a budget/a plan and stick to it
If you have debts you need to pay off, it’s important to come up with a plan, so you know exactly what steps to take to get back on track. When in doubt, always seek the guidance of a professional. Most people do not have a lot of control of their spending, and they end up crossing their limits which is not ideal because it leads to debt. Always have a plan and stick to it so that there are some savings that you can lean on. There are always exceptions to the rule and some months where they have to spend a little more but always follow the plan for best results.

If you are looking for a company to assist with your mortgages, get in touch with us at Canadian Tailored Mortgage Solutions. We understand your requirements and work on finding ways that can benefit you in the long run. Having been in this industry for more than three decades, we get them the best mortgage plans to assist across all mortgage departments.

We work on the shortest timings and fastest turnaround time. We are assisting people across various parts of Canada, and we are always open to helping a few more people if we can. If you want a better understanding of the services that we provide, please click here. If you want to get in touch with us, please click here.