1. Make Payments on Time

• Significance: 
  Your payment history is the most significant factor affecting your credit score, accounting for about 35% of your total score.
• Consistent Payments: 
  Always pay your bills on time, including credit card payments, loan installments, and utility bills.
• Tools to Help: 
  Setting up automatic payments or calendar reminders can help you stay on top of due dates.
• Benefits: 
  Consistent on-time payments can lead to better loan approvals and lower interest rates.

2. Keep Your Credit Utilization Low

• Definition: 
  Credit utilization refers to the percentage of your available credit that you’re using.
• Optimal Usage: 
  Aim to use no more than 30% of your available credit limit.
• Responsible Management: 
  Keep your credit card balances low and pay them off in full each month.
• Impact: 
  Low credit utilization improves your credit score and shows lenders that you manage debt effectively, making you a lower-risk borrower.

3. Avoid Applying for Too Much New Credit

• Impact of Hard Inquiries: 
  Each time you apply for new credit, a hard inquiry is recorded on your credit report, which can slightly lower your score.
• Debt Signals: 
  Too many inquiries in a short period may signal that you’re taking on more debt than you can handle.
• Strategy: 
  Only apply for credit when it’s necessary to avoid negative impacts on your score.
• Stability: 
  Limiting new credit applications helps maintain stability in your financial profile.

4. Keep Older Credit Accounts Open

• Credit History Length: 
  The length of your credit history affects your credit score.
• Benefits of Older Accounts: 
  Keeping older accounts open helps establish a longer credit history, which is beneficial.
• Avoid Negative Effects: 
  Closing old accounts could shorten your credit history and increase your credit utilization, both of which could negatively impact your score.
• Credibility: 
  Maintaining older accounts adds to your credibility as a responsible borrower with a longer track record.

5. Diversify Your Credit Types

• Variety of Credit: 
  Having a mix of different types of credit, such as credit cards, car loans, and a mortgage, can positively impact your score.
• Responsible Management: 
  It shows lenders that you can manage various forms of credit responsibly.
• Consider Adding: 
  If you only have one type of credit, consider diversifying by adding another type, like a small personal loan, if it makes sense for your financial situation.
• Appeal to Lenders: 
  A diverse credit profile can make you more appealing to lenders.

6. Correct Errors on Your Credit Report

• Regular Checks: 
  Credit report errors can negatively affect your score, so it’s important to check your credit report regularly for mistakes.
• Common Errors: 
  Look for incorrect information or unauthorized accounts.
• Free Reports: 
  In Canada, you can request a free credit report from Equifax or TransUnion once a year.
• Dispute Errors: 
  If you spot any errors, contact the credit bureau to have them corrected.
• Accuracy: 
  Ensuring your credit report is accurate will help you achieve the best possible score.

7. Reduce Outstanding Debts

• Effective Strategy: 
  Paying down your outstanding debts is one of the most effective ways to improve your credit score.
• Credit Utilization Ratio: 
  High balances can hurt your credit utilization ratio, so focus on paying off high-interest debts first and gradually work on reducing all your balances.
• Responsible Management: 
  This shows lenders that you are taking steps to manage your debts responsibly, which can lead to better credit opportunities in the future.

8. Use Secured Credit Cards

• Building Credit: 
  If you have a low credit score or no credit history, a secured credit card can be a great tool to help you build credit.
• How It Works: 
  With a secured card, you make a deposit that acts as your credit limit.
• Responsible Use: 
  Using the card responsibly and making on-time payments will help build positive credit history over time.
• Future Benefits: 
  This can eventually qualify you for unsecured credit products.

9. Limit Your Spending

• Budgeting: 
  Living within your means and budgeting effectively can help prevent credit issues.
• Avoid Maxing Out: 
  Avoid maxing out your credit cards, and try to keep your spending within what you can afford to pay off each month.
• Debt Reduction: 
  Limiting your spending helps reduce debt and prevents missed or late payments, which can harm your credit score.
• Financial Health: 
  Practicing mindful spending also keeps your finances in check.

10. Become an Authorized User

• Boosting Your Score: 
  If a family member or friend has a strong credit history, you may be able to improve your credit score by becoming an authorized user on their credit card.
• Benefit from Positive History: 
  This allows you to benefit from their positive payment history, which can give your score a boost.
• Responsibility: 
  Ensure the primary cardholder manages their credit responsibly to make this strategy work in your favor.