Having a good credit rating means getting more advantageous loans and putting every chance on your side to get future applications accepted. But how do you improve it?
Today, we’ll explain how to know your credit rating and how to improve it.
3 Ways of Getting It
Are you asking yourself, “how can I know my credit rating for free”? There are 3 ways:
- By e-mail
- By phone
In the first case, you’ll have to fill in a form and present photocopies of two identification documents, then send them to Équifax or TransUnion’s address. In the second case, you must call credit agencies directly; They will then send your file by mail. Make sure to have your credit cards and social insurance numbers to identify yourself.
You can also do your whole application online on the TransUnion or Équifax websites.
Improving Your Credit Rating: Some Tips
First, what is a good credit rating? If your rating is somewhere between 760 and 900, you have an excellent rating; 725 to 759 is also considered very good.
Your application shows a lower number? It could be beneficial to follow these tips to improve it:
- Follow a budget to avoid indebtedness
- Pay back your credit cards or pay your monthly balance on time
- Only use between 35 and 50% of your credit limits
- Limit your number of bank accounts
- Vary your types of loan (credit cards and lines, personal loans)
- Limit some credit applications
The impactful credit applications mainly include card and loan applications as well as some rent and job applications.