5 Tips to Increase Your Credit Score

Your credit score plays a critical role in your financial journey, especially when applying for a mortgage in Windsor, Essex County, or anywhere in Southern Ontario. A strong credit score can unlock better loan terms, lower interest rates, and more borrowing power. Whether you’re looking to buy your first home or refinance, improving your credit score can make all the difference.

Here are five expert tips, backed by mortgage advisor Sonia Leo of Best Home Mortgage, to help you take control of your credit health and get closer to your homeownership goals.

1. Check Your Credit Report Regularly

Your credit journey starts with awareness. Many Canadians don’t realize that errors in their credit report can drag their score down.

Action Step:

Request your credit report from Equifax Canada or TransUnion (Canada’s two major credit bureaus) and review it thoroughly.

Look for:

• Incorrect balances or account information

• Duplicate accounts

• Fraudulent activity

Dispute any errors immediately. Even small corrections can improve your score and increase your mortgage approval chances.

2. Always Pay Bills on Time

Payment history makes up 35% of your credit score, making it the most significant factor. Even a single missed payment can hurt your score and stay on your report for up to 6 years.

Tips to Stay on Track:

• Set up automatic payments or calendar reminders

• Consolidate due dates for easier tracking

• Pay at least the minimum due to avoid late penalties

Mortgage lenders in Windsor often prioritize clients with a consistent payment history. Building a track record of timely payments is one of the most effective ways to improve your score.

3. Keep Credit Utilization Low

Credit utilization is the percentage of credit you’re using compared to your total available limit. Ideally, you should keep this ratio under 30%.

Example:

If your credit limit is $10,000, try to use no more than $3,000 at any given time.

Quick Wins:

• Pay down high-balance credit cards

• Request a credit limit increase (without increasing spending)

• Spread balances across multiple cards to stay under the limit

Maintaining a low utilization rate signals to lenders that you’re financially responsible and helps boost your score over time.

4. Don’t Close Old Accounts

It might seem wise to close unused credit cards, but doing so could actually lower your score. That’s because your credit history length accounts for 15% of your credit score.

Best Practices:

• Keep your oldest accounts open to show a long credit history

• Use old cards occasionally for small purchases and pay them off

A longer average credit history builds trust with lenders and enhances your creditworthiness especially important when applying for a mortgage with brokers like Best Home Mortgage.

5. Limit New Credit Applications

Every time you apply for a new credit card or loan, a hard inquiry appears on your report. Too many inquiries in a short time frame can decrease your credit score and suggest financial instability to lenders.

What You Can Do:

• Space out credit applications

• Only apply when necessary

• Consider pre-qualifying with lenders to avoid a hard inquiry

Keeping inquiries minimal shows lenders that you’re not desperate for credit and helps maintain your score during the mortgage application process.

Why Credit Scores Matter in Windsor’s Housing Market

With Windsor’s real estate market continuing to grow, your credit score can make or break your mortgage approval process. A better score can result in:

• Lower interest rates

• Reduced down payment requirements

• Easier approval for higher loan amounts

• More flexible repayment terms

Mortgage brokers like Sonia Leo at Best Home Mortgage work with both traditional and alternative lenders. A higher score can help you access more favorable options and save thousands over the life of your loan.

Final Thoughts

Improving your credit score isn’t an overnight fix—it requires consistent, smart financial habits. By following these five tips, you’ll be on a strong path toward securing better mortgage options in Windsor, Essex County, and across Southern Ontario.

Whether you’re a first-time homebuyer or looking to refinance, a better credit score gives you more control, more options, and more savings.

Need Help with Your Mortgage?

📞 Contact Sonia Leo at Best Home Mortgage for personalized mortgage advice tailored to your credit profile.