SECRETS FOR BUILDING YOUR CREDIT

Many Canadians don’t know their actual credit score — and are often surprised to find it’s either higher or lower than expected. Credit scoring is complex, but with the right habits, you can raise your score faster and strengthen your borrowing power for major goals like homeownership.

Here are proven strategies to build and protect your credit 👇

1️⃣ Manage credit card balances strategically

Your balance-to-limit ratio has a major impact on your score.

✔️ stay below 50% of your limit

✔️ avoid maxing out cards

✔️ over-limit by even $1 can cost 35+ points

Quick score-boost tip:

Ask for a credit limit increase. This lowers your utilization instantly and often adds 20–30 points without spending a dollar.

2️⃣ Diversify your credit types

Credit bureaus want to see a mix of revolving and installment credit.

✔️ revolving = credit cards

✔️ installment = car loans, RRSP loans, personal loans

✔️ aim for at least $2,500 in available credit

If you don’t have installment credit, a small RRSP loan can strengthen your profile — and create a tax refund you can use toward savings or a future down payment.

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3️⃣ Maintain long-standing accounts

Older accounts strengthen your credit history.

✔️ keep old cards open

✔️ monthly reporting shows stability

✔️ $0 balances still help your score

Closing an old card can reduce account history and remove valuable reporting activity.

4️⃣ Build a strong payment history with frequent payments

Payment history is a major scoring factor.

✔️ pay on time every month

✔️ avoid late or missed payments

✔️ consider weekly or bi-weekly payments

Weekly payments keep balances low and show more frequent activity — a method linked with exceptionally high scores.

5️⃣ Consolidate high-interest debt wisely

Carrying large credit card balances hurts your score.

✔️ transfer high-interest store cards to lower-rate cards

✔️ negotiate lower interest rates

✔️ create a structured payoff plan

Reducing revolving balances boosts credit scores while lowering interest costs.

💬 Final Thought

Building strong credit isn’t complicated — it simply requires structure, consistency, and the right strategy. Managing balances, diversifying credit, keeping older accounts active, and paying frequently can increase your score quickly and significantly.

For a personalized credit-building plan designed for mortgage qualification, send The Frontline Mortgage Group a message anytime.