INCREASE YOUR CREDIT SCORE IN CANADA!! - How to Improve Your Credit Score Explained 2024

In this video, we have credit score explained, and we discuss how you can improve your credit score fast. By watching the video and following the instructions, depending on your situation, you may even receive a credit score increase in 30 days or less, even if you have a credit score less than 300!

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Your credit score is a score that reflects how good you are at managing credit. The reason why this score is so important is that anytime you apply for a new line of credit, whether it's a loan, or a house mortgage, or even just a new credit card, the credit providers asses your reliability through your credit score. The higher your credit score, the less of a risk you are perceived to be by credit lenders, and as a result, the more valuable you will be to them as an investment & a customer.

If you have a high credit score, not only are you more likely to get accepted for a new line of credit, but you are also going to have much lower interest rates, as credit lenders would compete with each other in order to get you as their customer. This could cause you to save tens of thousands of dollars, specially when it comes to larger loans such as a home mortgage.

This is why it is extremely important that you improve your credit score and maintain it at a high level, so that you can always get the best possible deal on your loans & mortgages.

There are several factors impact your credit score, and these are the areas that you need to focus on to increase credit score in Canada 2023.

The first factor is your credit payment history, and this makes up approximately 35% of your score. This refers to how often you are making your monthly payments on time, and the less credit payments you miss, the higher your score will be in this category. So all you need to do to get the most points in this category is to make sure you always pay off your credit bills on time & in full. In addition, be careful to never spend more than you can afford to pay off, as this could lead to missed payments.

The second factor is credit utilization & it contributes to 30% of your overall credit score. Credit utilization refers to what percentage of your available credit you are using before paying it off. Ideally, you want to always keep your credit utilization below 10%, as this would result in you getting the highest possible score from this category. If you ever need to utilize more than 10%, then just make sure to pay off your credit first before using it, so that you stay within that 10% range.

The next category is credit length, which makes up 15% of your credit score. For this, bureaus average out the length of all your lines of credit, and the higher your average credit length ends up being, the higher the score you will receive in this category. So in order to improve your credit score permanently, it is important to keep your lines of credit open for a long time, specially if they cost you nothing to keep open. So make sure you never cancel your no fee credit cards, even if you never use those cards, just keep them open so that they increase your average credit length and as a result, help you increase credit score.

The fourth contributing factor is credit mix, which makes up about 10% of your overall credit score. Credit mix refers to howany different types of credit you are using; for example if you have several credit cards, a car loan, and a home mortgage, that would be 3 different types of credit. The more different types of credit you have, the higher your score will be in this section. That said, you don't need to focus too much on improving this aspect of your credit score, as for one it is not as impacted as the other factors we have discussed so far, and also it is not as easy as other factors to influence.

The last category is new credit. Whenever you apply for a new line of credit, your score will be temporarily lowered (3 to 6 months). This is a security feature from the credit lenders to make sure people can't open up as many lines of credit as they want at once. That said, you shouldn't worry about lowering your score when you apply for a new loan or credit card, as it is only temporary; but if you are planning on applying for a big loan like a home mortgage, then don't open any new lines of credit for 6 months prior to that, so that you can have a high credit score when you apply for the big loan.

So go head and increase your credit score less than 300 to a credit score 700, credit score 760 & eventually credit score 800...

0:00 Intro
2:25 1- Payment History
3:21 2- Credit Utilization
3:53 3- Length of Credit
6:07 4- Credit Mix
6:54 5- New Credit

Видео INCREASE YOUR CREDIT SCORE IN CANADA!! - How to Improve Your Credit Score Explained 2024 канала Shervin House