1. Pay Bills on Time, Every Time
Payment history makes up the largest portion of your credit score. Even a single missed payment can hurt.
- Set up automatic payments for bills and credit cards.
- If you miss one, catch up right away and stay consistent moving forward.
2. Keep Your Credit Utilization Low
Your credit utilization ratio (how much of your available credit you use) should ideally stay below 30%.
- Example: If your credit card limit is $10,000, try to keep your balance under $3,000.
- Paying off balances mid-month (not just at the due date) can also help.
3. Avoid Too Many Hard Inquiries
Every time you apply for credit (credit cards, loans, car financing), lenders pull a hard inquiry. Too many within a short period can drag your score down.
- Space out applications when possible.
- Mortgage pre-approvals are treated differently — multiple checks within a short window usually count as one.
4. Keep Old Accounts Open
The length of your credit history matters. Even if you no longer use an older card, consider keeping it open to show a long, consistent record.
- Closing old accounts can shorten your credit history and reduce your overall available credit, which hurts utilization.
5. Mix Up Your Credit Types
Lenders like to see that you can handle different types of credit responsibly.
- Having both revolving credit (like credit cards) and installment loans (like a car loan or line of credit) shows variety.
- Don’t take on new debt just to “mix it up,” but a healthy balance improves your profile.
6. Check Your Credit Report Regularly
Errors happen more often than you’d think — and they can cost you.
- In Canada, you can request free reports from Equifax and TransUnion.
- Look for mistakes like wrong balances, duplicate accounts, or payments marked late in error.
- Dispute inaccuracies right away.
Why This Matters for Your Mortgage
A higher credit score means:
- Lower interest rates (saving thousands over the mortgage term)
- Better approval chances
- More lender options
At LendPro, we work with clients to prepare their credit profiles before applying for a mortgage, giving them the best chance at locking in a great rate.
✅ Want to know where your credit stands?
Reach out to LendPro today — we’ll review your financial picture and guide you toward the best steps for securing the lowest rates.
