What Influences Your Credit Score?
Five Factors That Affect a Credit Score
Your credit score is a number that impacts your ability to get credit. But what affects it exactly?
Good Reads From Around the Web
What Credit Utilization Means For Credit Score
Your credit utilization rate is the second most important factor that influences your credit score (first one being making your debt payments on time). Credit utilization is also something you have the power to control.
Watch this short explainer by Doug Hoyes as he explains what credit utilization is and how to use it to your advantage for a better credit score.
3 Credit Score Myths You Need to Know
MYTH 1: A credit repair loan can improve your credit score. This is often a financial trap. Credit repair loans come with high costs. There are credit repair agencies that say they will set you up with monthly payment plans to help you rebuild your credit because they will report your payments to the credit bureau. In reality, these don’t work as advertised and can have a major negative impact on your credit report if you miss a payment. So, please avoid them.
MYTH 2: It’s always good to increase your credit limit. If you have too much available credit, a new lender may deny your application because they may feel you have enough credit already. A new credit application may also need a hard inquiry into your credit report which will lower your score initially. We recommend only increasing your credit limit when you absolutely need to so you are approved when it’s most desired.
MYTH 3: Spouses share credit scores. Everyone who borrows has their own credit history and score in Canada. If one person in a partnership has poor credit or needs financial help, this will not affect the other partner’s credit score. It may only affect the other person’s credit if a debt is joint or co-signed.
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