Debt Consolidation Canada: A Loan Can Be Great For Your Score

Debt Consolidation Canada – It Begins With Your Credit Report

Debt Consolidation Canada: By now you’ve heard it a million times from family, friends, teachers and your banker – your credit report is your key to more money when you need it most. But while many of us know that a credit report has to be closely guarded, we might not be aware of what puts it at risk.

Debt Consolidation Canada – your guide

That is why we’re going to go over some of the lesser known risks to your credit report. See, most people think that you only have to avoid late payments or defaulting on loans altogether to avoid damaging your credit report.

While that does indeed make sense, many Canadians are not aware that behavior we see as normal is frowned upon by lenders and results in unwanted red marks on your credit report.

Once you know what these factors are and you avoid them, you can rest assured that your credit report will remain impeccable and you’ll always be in good standing for future loans you might apply for.

Here are some of the credit management practices you might be doing that are having a negative impact on your credit report:

Credit to Balance Ratio – how close are you to your credit card’s limit? Believe it or not, if your card is maxed, or close to it, lenders really don’t like seeing this. Even if you never miss your payments (even make them early), lenders want to see you carrying a balance of less than 70% of your credit card limit.

Too many applications – Lenders tend to be jumpy by nature and if they see that you’ve been trying to secure several sources of potential debt, they see it as a red flag. Even if your plan was merely to get extra credit cards and not touch them, only keep them on hand, they don’t like seeing a situation where you could take on more debt than you can manage.