Happy New Year! The holidays are all done and once again we have made it through the most popular shopping season of the year. A majority of us have used Credit for our Holiday Season purchases and now the fun and joy of shopping has become real and the Credit Card bills have started to arrive. Some consumers may even require a loan to pay off their credit card purchases once the season is over.  To learn more about Credit Scores, visit What is a Credit Score?, which includes a brief summary of how Credit Scores are calculated. This is important for lenders to consider you for obtaining a loan or other credit.

How is your Credit Score Factored?

Below are approximate percentages taken from “Equifax’s” Website:

  • 35% is based on your PAYMENT HISTORY. Are you making your payments on time? Are you making your minimum payments?
  • 30% is based on your AMOUNTS OWED. How much debt do you have? Are you at your limits and paying anything down?
  • 15% is based on the TYPES OF CREDIT. Do you have a lot of different type of accounts? Do you have several of these accounts?
  • 10-13% is based on NEW CREDIT. Do you have a lot of new accounts taken out? Do you have a lot of recent inquiries for apply for credit?
  • 5-7% is based on your LENGTH OF CREDIT HISTORY. How long have your accounts been opened for? How long has it been since you have used the accounts?

How to improve your Credit Score

  • Make your payments on time and repay the full balance owing each month if possible. If not pay at least the minimum payment on time or slightly more than the minimum payment.
  • Don’t use all your available credit so you are at your limits each month.
  • Keep old accounts active and follow the above two points.
  • Do not keeping applying for Credit if you have been declined for credit, too many inquires will bring down your score.
  • If you have many types of Credit, try to consolidate them into one payment or keeping only one or two credit cards.

If you are at the point of not being able to make your minimum payments or you have started missing payments or if your balances are not coming down at all due to the interest, our Debt Management Plan may be of assistance to you. You would only make one low monthly payment and the interest will be lowered at times to 0%. You may also fill in our online Budget Worksheet for a free assessment.

Keep working on increasing your Credit Score for any future credit you may require. We wish you a very Happy and Prosperous 2016!

Consumer Credit Counselling


Contact us at:

  • 1-800-565-4595
  • info@debtfreecanada.ca
  • Live Chat (link in page header)
  • Free Consultation form (bottom of page)