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Improving your credit score is essential for securing favourable mortgage approvals and rates.

Many of us don’t think about the credit score piece until it is too late.

To help you prepare for homeownership or your next loan, here are five tips to boost your credit score. 

Plus I’ve included a bonus tip for those looking to reestablish their credit.

Now, let’s dive in.

Your payment history is a key factor in your credit score. 

Late payments can have a negative impact. 

Ensure you pay all your bills, including credit cards, utilities, and loans, on time.

If you have a history of late payments, try this.

Paying all your bills on time for six months can improve your credit score. 

Set up automatic payments or reminders to help you stay on track.

The credit utilization ratio is key.

It compares your credit use to your limit.

Aim to keep your credit card balances below 30% of your total credit limit.

If you have a credit card with a $10,000 limit, try to keep your balance below $3,000. 

It shows lenders you manage your credit well.

This can boost your score.

Accepting a credit limit increase from your issuer can improve your credit utilization ratio.

Make sure you don’t increase your spending proportionally, though.

If your credit limit rises from $10,000 to $15,000 and your $3,000 balance stays the same, your utilization ratio drops from 30% to 20%.

This can boost your credit score.

The length of your credit history matters. 

Older accounts boost this factor, even if you aren’t using them.

If you have an old credit card that you’ve paid off, keep it open. 

This account’s long credit history can help your credit score.

Consolidating your debts into one loan can simplify payments.

It may also lower your interest rates.

This can help you manage your debt and avoid late payments.

If you have multiple high-interest credit card debts, consider a personal loan with a lower rate to pay them off. 

This can reduce your monthly payments and improve your credit utilization rati

If you have a low credit score or no credit history, a secured credit card can help you build or re-establish credit.

With a secured card, you make a security deposit that serves as your credit limit.

You deposit $500 to open a secured credit card with a $500 limit. 

Use the card responsibly and pay on time.

This will show you are creditworthy and will gradually improve your credit score. 

After a period of responsible use, you may qualify for an unsecured credit card.

It will further boost your credit profile.

Improving your credit score requires consistency and responsible financial habits. 

Implement these hacks to unlock better financial opportunities and take control of your credit future. 

Stay proactive and monitor your progress regularly to ensure continuous improvement.