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BDO St. Catharines

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St. Catharines, Ontario
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(905) 984-5424

How to Improve Your Credit Score

In our April podcast, our Licensed Insolvency Trustees (LIT) jump into a topic that Canadians know is important, but may not fully understand: credit scores and credit ratings.

Listen to the podcast as our LITs discuss what financial behaviour can negatively impact your credit score and their tips on how you can begin to rebuild your credit.

Here are ways that will negatively affect your credit history and lower your credit score:

  • Missing bill payments
  • Making multiple late payments
  • Debts going to collections
  • Using most or all of your credit card limits
  • Filing a consumer proposal or bankruptcy

Seeing debt relief options like a consumer proposal and bankruptcy on that list might seem like a deterrent to using them, but think of it like this:

If you’re considering a consumer proposal or filing for bankruptcy, the negative impact will be short-term as you will be working towards getting your finances back on the right track. Leaving things as the status quo, such as missing bill payments and having them go to collections means your credit score is already low and it will only continue to negatively affect you.

Do you know what your credit score is or how to work on rebuilding your credit history?

Our LITs offer some great advice in the podcast as they go in-depth on debt management and credit score tips including:

  • How to review your credit history by obtaining your credit report from Equifax or TransUnion.
  • Positively changing your credit behaviour to minimize or eliminate missed or late payments.
  • In-depth strategies to work on creating a new credit history.
  • Creating a financial plan that includes tracking spending, budgeting, making bill payments on time, and setting goals around saving and paying off debt.

Your credit score is just one of a variety of factors that lenders will look at when considering your credit applications. The better you understand how credit scores and credit ratings work the easier it will become to make positive changes in your financial habits.

The good news is that you are in complete control of being able to take actions that will begin to improve your credit score and rating. Keep improving your financial literacy by listening to this credit score podcast and our previous podcasts.

Share the advice from the podcast that resonated strongly with you on Twitter using #FinLit and #CreditScore.

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