How to Increase Credit Score in Scotiabank Fast
If you just moved to Canada and want a credit card, you must learn how to increase credit score in Scotiabank. A higher credit score makes obtaining loan products and credit cards more straightforward, and you’ll also enjoy paying them at a lower interest.
While you can’t boost your credit score overnight, the tips we’re about to share will help you have a better one within a month. But first, ensure you pay your revolving credit balances, start paying your bills on time, keep a low credit balance, and inspect your credit reports for errors.
How To Increase Credit Score Canada Scotiabank
Increasing your credit score in Canada can take a month or more. To enjoy the advantages of having a higher score, follow these tips.
1. Inspect Your Credit Reports for Errors
You could suffer a low credit score because of errors in your credit report. The errors include wrong personal information, inaccurate information like registration of late payments you made on time, or old and expired negative information.
Credit bureaus like Equifax and TransUnion provide Canadians with a copy of their credit report yearly. However, you must request the bureaus to send you copies of the information. You can also get the credit report from Borrowell for free.
Once you get the report, check all the details to ensure they are correct. For example, check for all the information concerning your payments and if you have recorded late fees. You can dispute the errors and ask for removal because it helps to boost your credit score.
2. Pay Your Bills on Time
Late payment of bills is a common reason for lower credit scores. These delayed payments leave negative information on your payment history used to set your credit score. Missing the payments gains you more negative points, scaring your credit score more.
You can set reminders for bill payments before the due dates to avoid missed deadlines. Alternatively, you can automate the bills so that the vendors automatically deduct the amounts from your account on the due date.
3. Increase Your Credit Limit
Another way to have a higher credit score is by increasing your credit limit. You can ask the financial institution for an increase or apply for a new credit card. However, even with the high credit limit, always stick to your budget to avoid maxing out your card.
Note that applying for a new credit card can affect your credit score. Each time you apply for a new card, the lender pulls out your credit report, which records it as a hard inquiry and reduces your credit points. So, take time between credit card applications, and don’t apply for too many.
While getting a new credit card can boost your credit score, always check the terms and the rates of the card issuer. For example, some lenders offer too high-interest rates. Also, you don’t want more credit cards that are too expensive to repay.
4. Have The Old Negative Entries Removed From The Report
All late payment information goes to your credit report, affecting your credit score. The good news is you can ask for the removal of this information after paying off the debt.
You should also check if you have a collection account you have not paid off because they record it as defaulted debts. Once you pay these bills, ask the collection agency to remove the accounts from the credit report.
5. Consolidate Your Debt
Sometimes the credit card balance accumulates and becomes more challenging to pay off. If faced with this situation, you can consolidate your debt. Take a lower-interest loan and pay off all your credit card debts.
For example, you can take the Scotiabank Value Visa Card, a low-interest balance transfer card, to pay off your credit card. It charges an interest of zero percent for six months.
Ensure you also pay the loan within six months to avoid paying it with a 12.99 percent interest after. Paying the debt before the due date protects you from being listed as a defaulter, scarring your credit score.
6. Keep Your Old Credit
Old credit history influences your overall credit score and can boost it. Avoid canceling old credit cards that you do not use. Instead, ensure they are in good shape, without pending debts and forgotten payments. You can also use the cards occasionally to keep them alive.
7. Avoid Spending More Than Your Credit Card Limit
Each time you exceed your expenditure from the payment allocated to your card, you could attract an extra fee or a higher interest on your credit. In addition, continuously spending more than your credit card limit can lead to the closure of your credit account.
Besides the increased fees and credit account closure, exceeding your credit limit can reduce your credit score. To ensure you remain within your limit, always stick within your budget.
If you buy items costing more than the limit, you can pay half the bill with cash or a debit card. Also, making payments of different currencies, like the USD, will cost you a currency conversion fee on your credit card, which can be expensive.
Avoid paying high currency exchange fees with banks and agencies by exchanging your money at Knightsbridge FX. We offer better exchange rates, and our site is easier to use. Lower rates will save you some dollars.
Effects Of a Low Credit Score
While maintaining a high credit score can be challenging, it is worth it. Some effects of having a low credit score are;
1. Higher Loan Rates
Lenders see you as a high-risk borrower with a low credit score. As a result, most lenders will charge you a higher interest rate on loans, making them more expensive.
Besides, some lenders require customers to have a particular credit score to qualify for a big loan like a mortgage. Therefore, you won’t be eligible for these loans if you don’t have a minimum credit score.
2. Some Career Opportunities Might Pass You
Employers are allowed to pull out their potential employee’s credit scores, and they can make their hiring decision around them. It mostly happens in jobs that have many financial responsibilities.
A lower credit score than the required minimum can make you miss out on these opportunities. Therefore, ensure you pay your credit card balances, student loans, and any missed payments to have a good credit score. Also, keep checking your credit score to know how to improve.
3. You Could Miss Out on The Best Rewards Credit Cards
Canadians with good or excellent credit scores can get the best introductory offers and cash-back incentives on credit cards. You could also get some pre-sales and cash back on streaming services, saving you some dollars.
You won’t be able to access these rewards with a low credit score. Besides, you could miss an opportunity to get a credit card with big financial institutions.
Now that you know how to increase your credit score at Scotiabank, you can start practicing increasing your score early. Ensure you automate your bills to avoid missed payments, check your credit reports for incorrect information, consolidate your debt, and increase your credit limit. These tips will boost trust in financial institutions and your credit score.