Good credit history is key to unlocking the door to your dream home. By showing lenders that you’re financially responsible and capable of making payments on time, you can improve your chances of securing a favourable mortgage rate and save thousands of dollars over the life of your loan. So if you’re in the market for a new home, take the time to review and improve your credit history – it could make all the difference in achieving your homeownership goals.

Here are seven tips for improving your credit score.

  1. Pay your bills on time: Late payments can harm your credit score. Be sure to pay your bills on or before the due date to show lenders that you are a responsible borrower.
  2. Reduce your credit utilization: Your credit utilization ratio is the amount of credit you use compared to the total credit available. Aim to keep your credit utilization below 30% to maintain a healthy credit score.
  3. Check your credit report for errors: Make sure your credit report is accurate and up to date. If you find any errors, dispute them with the credit bureau.
  4. Build credit history: Lenders like to see a long history of responsible borrowing. If you have a thin credit file, consider opening a credit card or taking out a small loan to build your credit history.
  5. Avoid applying for too much credit at once: Applying for multiple lines of credit in a short period can hurt your credit score. Limit your credit applications to only those you need.
  6. Keep your old credit accounts open: Length of credit history is an important factor in your credit score. Avoid closing old credit accounts, even if you’re not using them.
  7. Work with a credit counsellor: If you’re struggling with debt, a credit counsellor can help you devise a plan to manage your debt and improve your credit score over time.