How to make a strong credit history?
Hi friends, I wanna write about what is a good credit score and why we need our credit score? this is one of the most important things that I want to share with you. I have many troubles in the first year that I moved to Canada because I did not have enough information about how can I make a strong credit history. Please don’t forget to subscribe if you want to get the latest news and coupons 😉
What is a Credit score? A credit score is a number ranging from 300 to 900 (best) that tells how reliable a borrower you are and how well you manage your debt so your interest rate will determine based on your credit score for instance if a lender thinks you are a greater risk, they will likely charge a higher interest rate then try to have as high a credit score is possible.
Why do you need a good credit score? Lenders use credit ratings to assess a customer’s risk level. Telecommunication companies, insurers, building owners/landlords, and government agencies also use credit scores to assess the risk level. There are many benefits of having a good credit score like low-Interest rates on credit cards and loans, a better chance for loan approval, easier approval for rental houses and apartments, better car insurance rate, …
How you can check your credit score? there are two main credit bureaus in Canada, Equifax, and TransUnion. If you want to check your credit score directly you must pay a fee but if you are looking for using a free service to check your score my suggestion is Credit Karma and Borrowell.
How can you improve your credit score?
- Get a credit report and review everything carefully if you find a mistake report it
- Make sure all your utilities are in your name and always pay on time!
- Apply for a loan or line of credit then charge and pay back on time!
- Pay your credit card on time!
