How To Hack Your Credit Score

As an adult knowing what your credit scores are and keeping track of it periodically is important, especially if you’re looking to make a large investment like purchasing a house or a car. Your credit scores can impact your ability to not only qualify for a loan but your ability to secure a low-interest rate and flexible terms. 

Unfortunately, you can’t improve your credit overnight but, there are a few hacks you can use to improve your credit quickly. 

Credit Score Hacks In Canada 2022

If you’re looking to improve your credit scores or build one from the ground up then follow these hacks and you should be on your way to a healthy financial future with credit scores that will allow you to stay on track to make big life investments and purchases.

Fix Any Errors On Your Credit Report

If there is information on your credit reports that you believe to be inaccurate, you are allowed to file a dispute with the credit bureau or the company that reported the incorrect information to the bureau. 

If you file a dispute with a credit bureau, they will either ask you to provide documents and information that supports your findings, or they will get in contact directly with the company that reported the disputed information. 

If you file a dispute with the company that reported the incorrect information, they will likely conduct their own investigation and then notify the credit bureau(s) of any changes that should be made to fix the error. 

How To Dispute Your Errors On Your Credit Report?

Build A Positive Payment History

Your payment history is one of the, if not the most important factor in the calculation of your credit scores. So if you’re trying to hack your credit scores, you need to make your payments on time and in full every month. 

How To Build A Positive Payment History 

• Use A Secured Card – If you have bad credit or are new to Canada, you can use a secured credit card to help you build a positive payment history. These cards have easy requirements compared to regular credit cards. They usually guarantee approval so long as you can provide the minimum security deposit. As you use the secured card and make payments, your provider will report it to the credit bureau(s). This will help you build a positive payment history, which may lead to higher credit scores. 
• KOHO Credit Building Service – KOHO offers two affordable and easy options to help build a healthy credit history. As a KOHO member, you can sign up for either their Credit Building Program or Flexible Credit Building Program directly through their app.
• Savings Loan – A savings loan does not provide cash upfront. Rather, you’ll make payments to the lender who will hold it in a secured account. Every payment you make will be reported to the credit bureau(s), which will help you build a payment history. Once you’ve paid off the “loan”, the lender will release your funds minus any interest and fees. 

Become An Authorized User On Someone Else’s Credit Card

This is a good option for those who can’t get their own credit card, who are young or those that have no credit history at all. The idea is that you can become an authorized user on the credit card of someone else, usually a family member like your mother, father or significant other.

Once you’ve been added as an authorized user, you’ll be able to use the credit card but you won’t be responsible for the payments. The primary cardholder is solely responsible. As they make payments the creditor will report the payments to both your credit reports which may build your credit. However, it’s important to ask your credit card company if they do report the payments to both your reports as some companies do not. 

Things To Consider Before Becoming An Authorized User

• Your credit scores may not improve as fast with an authorized user credit card as it would with a card in your own name.
• It can be hard to find someone willing to tie you to their own credit scores. It’s important for everyone involved that you only choose someone you trust and have an open relationship with, that way discussing any problems won’t be an issue.
• Adding your child as an authorized card user on your credit card can be a good or bad decision. It’s a great way for them to start building their credit history from a young age, but if they misuse the credit card it can have a negative effect on you and your child’s credit scores.

Keep Your Debt-To-Credit Ratio Low

Depending on the credit scoring model used, Your debt-to-credit ratio usually counts for around 30% of your credit score calculation. Lenders generally like to see a ratio of 30% or lower. Moreover, lower ratios usually have a more positive impact than high debt-to-credit ratios. Here are some ways to keep your ratio low: 

Increase Your Credit Limit 

Increasing your credit card limit is a great way to hack your credit scores, especially if your limit is low on the card you already have. If you have a low limit, applying for a credit card limit increase can help keep your debt-to-credit ratio low. 

For example, if you have a credit card with a credit limit of $1,000 and a balance of $600, your debt-to-credit ratio would be 60%. If you increase your credit limit to $5,000, your ratio would decrease to 10%, which may have a positive effect on your credit scores. 

Make Multiple Payments Within The Same Billing Cycle 

You can keep your credit card balance low by making more than one payment per billing cycle. This way you’ll still be using your credit card and building a credit history for yourself but you won’t be maxing out your card in the process.

Don’t Close Old Accounts

Your credit account age is another factor that can impact your credit scores. Closing an account can reduce the average age of your accounts, which can negatively impact your credit scores. As such, keeping old credit card accounts open is recommended, especially if there’s no annual fee. However, if you’re unable to responsibly manage your credit cards, cancelling it may be better despite the potential negative impact it may have on your credit scores.

Don’t Apply For Too Many Credit Products

Applying for new credit will result in a hard inquiry. Hard inquiries, particularly multiple hard inquiries, can negatively affect your credit scores. As such, it is recommended that you don’t apply for too many new credit cards or loans in a short period of time. 

How To Check Your Credit Scores? 

	Cost	Credit Score	Credit Report
	Free	Yes	Yes	Visit Site
	Free	Yes	Yes	Visit Site
	Free	Yes	Yes	-

Credit Score Hacks FAQs

Bottom Line

These credit score hacks can help you build your credit scores, however, the time it takes to improve will vary by individual. In the end, time and consistent effort to improve your credit are key.