Graham Westmacott CFA

Portfolio Manager

Susan Daley CFA

Associate Portfolio Manager
  • T519.880.0888
  • 1.877.517.0888
  • F519.880.9997
  • The Marsland Centre
  • 20 Erb St. W,
    Suite 506
  • Waterloo, Ontario N2L 1T2

Improving Your Credit Score without Existing Debt

November 23, 2016 - 2 comments

Your credit score is used by banks to determine mortgage, car, and other loan interest rates. Employers, landlords, and cell phone companies use it to determine if you are a responsible adult who pays their bills and debts fully. But the fact is that even if you’ve never been in debt and have always paid your bills on time, your credit score might be hurting. The reason? Credit agencies just don’t have much information about how well you would be able to pay off any debts if you did have them, so they can’t give you a great score. Don’t despair, my video below outlines some of the steps you can take to build your credit score.


If you have any questions or topics you’d like me to cover, leave me a comment below.

By: Susan Daley with 2 comments.
  01/12/2016 4:14:22 PM
Susan Daley
Hi Kun,

Thanks for the comments. Not many people know about the utilization rates!

Fraud is typically proportional to the amount you use your card, the more you use any credit card, the higher the chance fraud can occur, so having multiple active cards won't necessarily increase that risk above using 1 card the same amount. The issue I do see associated with having many active cards is if you don't use some of them for long periods of time, forget to check the statements every month, and miss fraudulent activity that you normally would have seen and reported immediately. Or if you don't notice that a card is physically missing, reporting that to the card company would be delayed.

Lenders might also be less willing to provide you with new credit, as they may be weary that you will rack up all your cards at once due to financial difficulties. But I'm not sure how that balances out with having a lower utilization rate as a result of multiple cards.
  30/11/2016 11:17:24 AM
Excellent tips for personal financial management. I didn't know about the utilization rates. Is there any downside with keeping too many cards active? I.e., fraud?

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