How can I improve my credit score quickly?

You can’t. It takes time and consistent work to improve your credit score over time.

In Canada, there are two credit bureaus, TransUnion and Equifax. They are companies that collect information on how individuals use credit products, ie. credit cards, loans, utility accounts, etc. Each bureau has a formula it uses to give you a credit score. The numbers from each bureau may be different, but they should be close. A credit score is a number between 300-900 that indicate how you use credit. This number is one thing that creditors use to decide if they are going to give you credit and at what interest rate—the closer to 900, the lower the risk you are considering.

Here are five things to keep in mind as you work to improve your credit score.

1. Payment History
   • Make payments on time and at least the minimum payment amount.
2. Use of available credit
   • Try to use less than 35% of your available credit.
3. Length of credit history
   • Don’t close older accounts, especially if they have no annual fee.
4. Number of inquiries
   • A high # of hard inquiries will temporarily harm your credit score. A hard inquiry is from credit providers when you ask for credit.
   • Soft inquiries are when you look at your own score or when an existing creditor reviews your credit score to update their files.
   • If you are shopping around for a mortgage of car loan, do it within a 2 week period. This is usually treated as 1 inquiry instead of multiples.
5. Types of credit
   • It is better to have a mix of credit products, for example a car loan, a line of credit, credit cards from different providers.
   • Do limit yourself and move slowly to build your credit over time.