Your credit score is one of the most important factors lenders consider when you apply for a loan. A higher score not only increases your chances of approval but also unlocks significantly lower interest rates. Here is how you can boost your score quickly.

1. Check Your Credit Report for Errors

Before doing anything else, request a free copy of your credit report from Equifax or TransUnion. Look for errors such as accounts that don’t belong to you, incorrect late payment reports, or outdated personal information. Disputing and removing an error can boost your score instantly.

2. Lower Your Credit Utilization Ratio

Your credit utilization ratio—how much credit you are using compared to your total limit—makes up 30% of your credit score. Lenders like to see this number below 30%.

If you have a credit card with a $10,000 limit, try to keep the balance below $3,000. If your utilization is high, paying down your balances before applying for a new loan is the fastest way to improve your score.

3. Don’t Close Old Accounts

The length of your credit history accounts for 15% of your score. Closing an old credit card shortens your average account age and reduces your total available credit, which spikes your utilization ratio. Keep old, no-fee cards open and use them occasionally for small purchases.

4. Limit Hard Inquiries

Every time you apply for new credit, a “hard inquiry” is recorded, which can temporarily ding your score by a few points. Avoid applying for multiple credit cards or loans in the months leading up to a major application, like a mortgage.

Note: When you use BorrowMoney.ca to check your rates, we only perform a “soft pull” which does not affect your credit score at all.