10 Best Ways to Improve Credit Score Quickly

Canadians are borrowers. It’s just a fact. The generation of today is borrowing like there is no tomorrow – and it continues to heighten, even with interest rates on the rise. We’re using credit cards, lines of credit, OACs, payment plans, and every other borrowing instrument to get our hands on some goodies.

Eventually, it catches up to you and you realize that you are tapped out. You borrowed too much, and you attempted to live way beyond your means to keep up with the Joneses.

As a result, your credit score is taking a hit, which could affect not only your future borrowing habits, but also your ability to rent an apartment, lease an automobile, or perhaps even obtain employment. If you’re a consumer who has seen his or her credit score take a nosedive below the national average of 650, then it is important to act right away.

Here are the 10 best ways to improve credit score quickly:

1. Check Your Credit Reports

In order to improve credit score quickly, the very first step to take is to obtain your credit report. Unlike south of the border, Canadians need to pay for their credit reports, but it is still a wise investment because you can see determine if there are any discrepancies or issues that need to be rectified (see below). Moreover, a simple check on your credit report can provide you with your credit rating.

2. Rectify the Problem

Identity theft? Someone use your credit to buy something? A company mistakenly claim you did not pay a bill? There are many issues that could arise on your credit report that are wrong. It is your job to fix it.

How do you begin? Here are a few recommendations:

• Contact the credit lender or service provider and inform them of the error.
• Get in touch with your bank and let them know of the possible identity theft.
• Pay a bill that is in collections (if not yet paid).

As long as you solve the issue right away, then your bad credit score can get a quick boost almost immediately. Knowing what kind of financial problems that you have is the first step in how to improve credit score quickly.

3. Pay Any Outstanding Debts

This may be stating the obvious, but paying off any outstanding debts is one of the best ways to improve credit score quickly. Let’s be honest: some of us get into so much debt that we start to lose track – and that’s the worst way to manage your personal finances. That said, if you find that you have an outstanding debt – $50 credit card bill from 2016, a $35 cellphone bill from Bell, or a $123 gas bill – then you should take the appropriate steps to pay it. This is the best thing you can do for your credit.

4. Fix Your Late Payments

A late payment is the quickest way for businesses to make some extra money and for your credit score to take a minor hit. But this is potentially one of the easiest ways to remedy the situation: stop being late with your payments.

Whether you want to establish an automated monthly withdrawal program, or you want start a weekly reminder for an upcoming bill, it is imperative that you fix this matter right away.

5. Use One Credit Card

Narrowing down to a single credit card could be one of the best ways to improve credit score. It’s very easy to get into financial trouble is to use multiple credit cards. By tapping with a Visa, inserting with a MasterCard, and swiping with an American Express, you are only setting yourself up for failure because it can be nearly impossible to keep track of these transactions, payments, and due dates.

While cash is king, you are probably like most people and choose to use plastic for most transactions. If you do, then be sure to rely on only one credit card. Better yet, use the one card that offers rewards, so that you have a card that is working for you.

6. Eliminate Credit Card Balances

Again, if you’re utilizing multiple credit cards for your transactions, then it is inevitable that you will have balances just because it’s hard to keep track of your obligations. That said, it would be a good idea to determine if you have any leftover balances, even if it is as minuscule as $15.

If you do find that you have leftover credit card balances, then pay them off as quickly as possible.

7. Stop Hinting at Risk

Are you hinting at risk? If you’re using your credit card at a pawn shop, at a divorce lawyer’s office, or at a payday loan establishment, then you’re suggesting that you’re becoming a financial risk, which hurts your overall credit score. And that’s never a good thing.

8. Boost Your Credit Limit

A simple but effective way of improving credit score quickly is to boost your credit limit. Now, this isn’t the for faint of heart or the fiscally irresponsible. If you don’t have the will to refrain from touching $20,000 in a pot of dough, then you shouldn’t do this.

With a disclaimer out of the way, an increase to your credit limit can allot you a few extra points to your credit report.

9. Utilize Your Credit More (But Wisely)

You have all this credit, but you never use it. This isn’t necessarily a bad thing, especially if you know that you’ll only get yourself into trouble. That said, a guaranteed way to garner some additional points to your credit score total is to use your credit more. You may add a few more transactions to your credit card, you could tap into your line of credit a couple of more times, or you could take advantage of your modest credit and get some furniture from Leon’s or The Brick.

10. Not in a Rush? Don’t Obsess

In the end, if you’re not in a rush to max out your credit score, then you should opt to take your time. In other words, be a responsible and reliable consumer who takes his or her time with their finances. You should never rush into anything and take out loads of credit – that will only set yourself up for failure. Simply put: don’t obsess over your credit.

For every dollar of disposable income, Canadians owe $1.73 – and it goes up every month. We are spending more than we can afford, we are overextending ourselves, and we are losing sleep because of how indebted we are. From maxed out credit cards to monster mortgages, Canadians get into pecuniary trouble in a myriad of ways. It’s a troubling scenario, and one that can be avoided with budgets, fiscal responsibility, and a respect for the fruits of your labour.

If you are looking for the best ways to improve your credit score as soon as possible, then take advantage of these effective measures listed above.