Credit Score

What is a credit score? When is the last time you check your credit score? A credit score is a 3-dights number that is used to help lenders to determine how likely they will be to repaid on time if they grant you a loan for a house. The higher the score, the more likely you are qualify for a loan at the most favourable term. 

A credit history outline how often you paid your credits and other debts on time. Improving your credit score does takes time, but the sooner you address your concern, the faster your credit score will go up. 

There are few tips you can do to improve your credit score: 

1. Pay your bills on time. Paying your bills on time is a big factor. Lender will review your credit report and request a credit score from you. They are interested in how reliable you pay your bill on time. 

2. Don't spend too much on your credit card. Many people do not realize that when you spend too much on unnecessary purchases, there is a good chance that you will not be able to pay your credit card that can affect your score. A good practice is only spend purchase no more than about 20-30% of your credit limit. 

3. Don't close unused credit cards. Keep your credit card open, because when you close your credit card account, this will increase your credit utilization ratio 

4. Only apply for a new credit as needed. When you applied multiple credit card, this will create too many hard inquiries on your credit report, as this tempt you to overspend and accumlate debt. 

5. Dispute any inaccurate inquiries on your credit report. You want to make sure you do this because by not doing this, this can affect your credit, meaning if you already pay your bills on time, but it has unpaid bill, you want to dispute that to your bank and credit union to get this resolved.