4 Pillars Offers Ways To Boost Your Credit Score

Your credit score is like a financial report card. All aspects of how a consumer handles money, including prompt and full payments, debt balance, and even inquiries on the credit score all impact the final score.

In Canada, there are two different agencies that monitor credit. These are Equifax Canada and Trans Union Canada. 4 Pillars debt consultants recommend consumers routinely monitor their credit scores on the two reporting agencies and immediately address any errors on the reports.

Often, professionals at 4 Pillars are the first to suggest monitoring the credit score to consumers. Simply notifying the agencies of mistakes can boost the credit score by removing errors that are lowering the overall rating. In addition to catching mistakes and making corrections, there are other ways a 4 Pillars debt consultant may recommend to improve your credit score.

Lower Credit Card Levels

Paying more than the minimum amount on credit cards and loans is an effective way to build a credit score over time. Paying off loans in advance not only eliminates additional interest and possible fees but it also lowers overall credit usage, which has a positive impact on the score.

Avoid Applying for Credit

Many consumers do not realize that applying for credit, even if denied, can drop the credit score. These are called “hard hits” on your credit report and include a variety of types of credit checks by lenders.

Common examples of these costly “hard hits” include applications for any type of credit card or store credit, applications for loans, and even some types of rental or employment applications. While these may not be avoidable, limiting the number will help prevent drops in your score.