- Using Credit To Build a Credit Score
Remember to keep your balances low and manageable. The credit bureau only receives reports regarding your balances and payments. Making your payments on-time builds your credit history strength and score. Individuals can order a copy of their own Credit Report (note: attach the link to the website to this so that it is highlighted blue) by contacting their local bureau.
- Too Many Credit Cards Will Hurt My Credit Score
Actually, cancelling healthy active cards or accounts hurts more, as all of the payment history is lost along with the type of credit granted. The average Canadian has 10 credit sources, having more does not hurt as long as you pay on-time. You should also adopt the rule of maintaining a balance at no more than 75% of the limit, but less is best. Also, applying for new credit every week will lower you credit score.
- My Utilities and Internet Are Paid On-Time Every Month
These providers only check your credit to determine creditworthiness. They don’t report your payment history to the bureau. On the flipside, they will report when you Don’t pay. The other organizations that only report upon default are municipalities and ICBC.
- Checking My Score Will Decrease IT
There are two types of inquiries, soft and hard. A soft inquiry occurs when you pull your own credit report. Credit card companies also pull soft inquiries when marketing pre-approval offers. A hard inquiry happens when submitting a loan or credit card application. A hard inquiry is one that is triggered by the applicant. Soft inquiries do not affect the Credit Score. A consumer can pull their own credit score as many times as they wish without repercussions. Hard inquiries affect the score slightly. These inquiries are included in the calculation done for credit scoring.
- There Is Nothing I Can Do Once A Payment Is Late
Creditors are always willing to work with you if there is a late payment. If notified in a timely manner a late payment can be easily removed, just don’t make a habit of it. Some is better than none.
So even if your Credit Report is not great, our mortgage brokers will assist you in finding the right options to achieve your financial goals and help you to make the best decision.
Read More … (Attach link from original article to Read More so that it is highlighted blue)
https://dominionlending.ca/news/5-common-myths-about-credit-scores/
