Do you know your credit score?

According to a BMO Bank of Montreal report, many Canadians are unaware how their behaviour may be affecting their overall credit standing and the impact that can have on securing a loan, getting approved for a mortgage, or getting qualified for a lease to rent an apartment.

A Credit Report is a record of how you’ve paid your debt.  It shows how much debt you have and whether you’ve made payments on time.

The study also revealed that over half of Canadians do not know what would be considered a good credit score.   A good credit score is generally considered in the range of 680 – 720, says vice president of BMO Bank of Montreal.

 

The following tips can help Canadians improve or maintain their credit score:

Pay bills on time.  One of the best ways to improve your credit score is to pay your bills within the grace period.  If you have past-due bills now, get current as soon as you can.  In the event you miss a payment, a call to your credit card or lender, to work out a plan, can help save you unnecessary dings on your credit score.

Manage your credit cards, don’t cancel them.   A popular myth is that closing old accounts will increase your credit score.  This is not necessarily true.  Credit Bureaus look at a combination of factors, including the total length of your credit history, which means it may be better to keep your credit cards but manage them responsibly.

Check your credit report.  A credit report is a record of how you’ve paid your debt.  It shows how much debt you have and whether you’ve made payments on time.

Original article from:  http://newsroom.bmo.com/press-releases

 

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