Help! My credit score rating has stopped increasing! Why?

Official blog of Refresh Financial

Help! My credit score rating has stopped increasing! Why?

If you've been working hard to build your credit score rating and it's been increasing but has suddenly stalled, it can be incredibly frustrating.

Why isn’t your credit score increasing anymore?

There are several reasons why your credit score rating may appear to “stall”:

1. Credit mix

Your credit score rating can stop increasing if you only have one type of credit. Credit mix accounts for about 15% of your score, so it’s important to mix up your credit products. There are two main types of credit: installment and revolving. Revolving is the sort of credit you can use over and over, like a credit card; installment is paying down a specific amount, like a loan. If you’ve just got a couple of credit cards, you could be missing out on a few extra points on increasing your credit score rating.

2. Average age of your credit accounts

If you’re recovering from poor credit, chances are most of your credit accounts are relatively new. The longer the age of your credit history, though, the better your credit score rating is going to become. This is one you’re just going to have to wait out. As your credit ages and you keep it all in good standing, your credit score is likely to increase. To this end, try not to close your oldest account. If it’s revolving credit and it has high interest, simply don’t use it anymore.

3. You still have one or more derogatory items on your credit report

If you made a late payment a few years ago, or perhaps even missed a payment or two, that’s going to behave like an anchor to your credit score rating. If it’s just one item, your score will be held back slightly until the item is removed after six years or less. If you have multiple derogatory items, you can find yourself unable to reach excellent scores until these items expire from your report. Again, it’s a waiting game, but in the meantime, ensure you’re doing everything else you can to maintain a good credit score rating.

4. Your usage is too high

Your credit usage is the percentage of the credit you have available that you’ve used. For instance, if you have $5000 credit total across all credit products and you owe $2500 across all credit products, you have a credit usage of 50%. Try to keep your percentage as low as you can. At least below 30%.

5. Too many recent inquiries can impact your credit score rating

If it appears as though you’ve been reaching out to everyone and their uncle for credit, your score will suffer. It makes you appear as though you desperately need spending power and are a huge risk to lend to. Try not to apply for new credit more often than once per six months, even if you get denied.

6. You still have a bankruptcy or consumer proposal on your credit report

Unfortunately, you’re going to have to wait this one out, too. This can have a pretty devastating effect on your credit but it is possible to rebuild with these still showing up on your report. Your score just won’t get to where you truly want it, until they are gone. For bankruptcy, you’re going to have to wait 6 years and for a consumer proposal, you’re going to have to wait for 3 years before you can bump your score up even further.

One or a combination of any of these things can hold your credit score back from being excellent. These factors can even hold your already good score back from becoming excellent. The best plan of action is to correct any of these you can, and wait the rest out while continuing to build your credit with minimum risk. Consider grabbing yourself a Refresh Financial Credit Builder Loan to nudge those numbers and start seeing your credit score rating on the rise again!

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    What Canadians are saying about Refresh

    I would like to thank Refresh Financial for helping me get out of a bad spot. I never thought it was possible and almost gave up on things and then I saw Refresh Financial and and gave it a try. At first I was unsure of things but to see my credit score now makes me a believer in this program.

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    Refresh helped me regain credit following a nasty divorce, which left me with a very poor rating. They were able to remarkably help me go from a 480 to a 600 score, in just over a year. Thank you Refresh!”

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    I have watched my credit score jump since being with Refresh and I have already recommended it to friends and family. Thank you for helping me build my credit faster for my future and my children’s future :)”

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    At first I was skeptical because I wasn’t getting funds upfront and had to make payments when I really needed the money. I’ve been in the program a year now and have noticed my credit has improved drastically!”

    – Irene L

    I have been a client of Refresh Financial for approximately 3 years. Since being a client they have improved my credit immensely. Definitely recommend this company to anybody that needs help re-establishing credit.”

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    Refresh Financial is an amazing program to help people get back on their feet. I was rock bottom with nowhere to turn. My credit was beyond poor. I would recommend them to anyone. If I can do it surely anyone else can.”

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    “Great company to deal with for rebuilding credit, very simple process to get started. Good service if you ever have questions.”

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    This business truly cares about its clients. The customer service is always quick to return calls or emails. Their online portal functions very well so as a customer you are always updated as you progress with your loan.

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    “Refresh Financial has made us more aware of how to take care of our financial situation and be more responsible, and making payments on time is rewarding in the end for credit. Thank You sincerely.”

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    This company has been nothing but fantastic. They have gone above and beyond to help me. This program has given me the relief and peace of mind I need. I would certainly go back to them and give them names of people who could use this.”

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    The financial services products are excellent for new immigrants, low-income earners and small business owners. Loans, savings and credit building all in one solution is a perfect fit to help with financial goals and stability.”

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    “After successfully going through a credit rebuilding loan, I was able to use my built-up equity to purchase a newer vehicle and I have since been approved through a financial institution for a loan.”

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    “I made some poor credit choices when I turned 18 and have always had this lingering thought of how am I ever going to better my score. Since being with Refresh I have realized that I took the right step towards bettering my future.”

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    “Thank you Refresh, and my relationship manager for giving me the tools for a better score with a secured card and two credit builder loans. I feel absolutely confident I’m on a better path to financial success. I am happy to be a long term client.”

    – Trevor P

    I’m so excited I’ve joined refresh! I’ve already seen a huge increase on my credit after the first month! The staff are a delight and make this so easy to understand. I strongly recommend Refresh Financial even if you have good credit this will give you a boost and you’re saving money with the reverse loan!”

    – Wayne B