A lot of Canadians who have ran into past credit issues think that the best way to raise their credit score is to not use credit at all. You often hear about how applying for credit can cause your score to go down and then there’s always the risk of missing a payment or paying late and that negatively affecting your credit score as well.
The problem with not using your credit is that in the past you may have had events like collections, written off accounts, bankruptcies or other credit damaging circumstances that caused your score to drop. What you really need is to show your credit-worthiness by making some payments on time and slowly building that score back up.
If all the credit profile shows are bad things – it makes sense why having positive repayment history will be extremely helpful in building your score back up. So when you’re thinking of avoiding credit to help your score – think what ways you can use credit safely and easily to start getting some good credit reporting back on your report.