A bad credit ratingCredit rating A way to score a person or company’s ability to repay money that it borrows based on credit and payment history. Your credit score is based on your borrowing history and financial situation, including your savings and debts.+ read full definition will affect your ability to get a new loanLoan An agreement to borrow money for a set period of time. You agree to pay back the full amount, plus interest, by a set date.+ read full definition, lease or credit card. But there are some simple steps you can take to improve your credit rating.
5 ways to improve your credit rating
- Pay your bills in full and on time.
- Don’t go over the limit on your credit card.
- Don’t apply for credit too often.
- Pay off your debts as quickly as possible.
- Build a strong credit history.
A survey by the Financial Consumer Agency of Canada found 24% of Canadians knew their credit rating.