Welcome to the last of our 3 part series on New Year’s resolutions for home buyers and sellers.This one is a doozy – it’s all about improving your credit. Even if you have great credit, it’s worth a look as everyone’s credit could use a check up from time to time.

Let’s dive right in: How can someone improve their credit score?

1. Pay bills on time. Talk with your bank about making automatic payments on your regular bills. This will take the potential for human error out of the equation completely.
2. Keep your credit card balances low. Ideally, this is less than 30% of your limit. High balances have a negative impact on your credit score.
   Similarly, keep an eye on your credit utilization ratio: Your credit utilization ratio, which is the percentage of credit you are using compared to your credit limit, is an important factor in determining your credit score. Try to keep your credit utilization ratio below 30%.
3. Make sure to dispute errors on your credit report with the credit bureaus. They are required to investigate errors.
4. Limit new credit card applications, especially if you are applying for a mortgage or other large loan in the near future. Stay away from those store credit cards. As much as the savings might be at the time of application, those new applications can have a negative impact on your score.
5. Keep old accounts open. Having a long credit history can have a positive impact on your score.
6. Check your credit report regularly. You are entitled to a free credit report from each of the two credit bureaus in Canada: Equifax and TransUnion. Review your credit report regularly to ensure that all the information is accurate.
7. Use a mix of credit. Having a mix of credit types, such as a mortgage, a car loan and a credit card, can help to boost your credit score.
8. Be cautious with credit rebuilding: If you have had credit issues in the past, be cautious with credit rebuilding products, such as secured credit cards, they can have high-interest rates and fees and may not always be the best option.
9. Seek professional help if needed from a credit counselor or debt management specialist.

Who offers professional credit help in Canada? There are a number of organizations to check out.

Credit Counseling Services of Canada (CCS): CCS is a non-profit organization that provides credit counseling and debt management services to individuals and families. They can help you create a budget, negotiate with creditors, and develop a debt repayment plan.

Credit Canada Debt Solutions: This is a non-profit credit counseling agency that offers a variety of services, including credit counseling, debt management programs, and debt consolidation loans.

BDO Canada Limited: BDO is one of the largest accounting and advisory firms in Canada. They offer a range of debt solutions, including credit counseling, debt consolidation, and bankruptcy services.

It’s important to check the credentials and reputation of any credit counseling agency before you work with them. You can check with the Financial Consumer Agency of Canada (FCAC) for more information on credit counseling and debt management services in Canada. It’s also important to be cautious of any agency that charges high fees or guarantees to improve your credit score quickly.

Full disclaimer: We are not credit advisors. We have gathered this information to give our readers a place to start. If you need credit or debt solution help, we have linked several resources in the text above.

We hope this information helps you on your way to a strong credit score. If you have good credit, we hope this info helps you to make it great. And if you have great credit, we hope this gives you a list of things to keep your eye on to keep it great. Here’s to financial freedom and security! Happy New Year!