A credit score is a three-digit number that represents your creditworthiness and impacts your ability to secure loans, mortgages, and credit cards. Many Canadians worry about factors that don’t actually affect their score. Knowing what does and doesn’t impact your credit is essential, especially if you’re planning to buy a home.
Why Credit Scores Matter
Your credit score determines loan eligibility, interest rates, and financial opportunities. Lenders use it to assess your reliability as a borrower. A higher score often means better borrowing options, while a lower score can lead to higher interest rates or loan denials. However, some commonly misunderstood factors have no effect at all.
Common Things That Won’t Hurt Your Credit Score
Checking Your Own Credit Report
Reviewing your credit report is a “soft inquiry” and does not lower your score. In fact, checking it regularly helps identify errors or potential fraud.
Using a Debit Card
Debit card transactions are not reported to credit bureaus because they do not involve borrowing money. Whether you use your debit card frequently or rarely, it won’t impact your credit score.
Income Changes
Your salary, job status, or career shifts do not directly affect your credit score. While income influences your ability to pay bills, your score is based on how you manage credit, not how much you earn.
Marital Status
Getting married or divorced does not impact your credit score. Even if you share financial accounts, your credit report remains separate. However, joint accounts and co-signed loans can influence both partners’ credit history.
Denied Credit Applications
While being denied credit can be discouraging, it does not hurt your credit score. However, the hard inquiry from applying for credit can have a minor temporary impact. To minimize unnecessary hard inquiries, avoid applying for multiple credit accounts in a short period.
How to Protect Your Credit Score
Although the factors mentioned above don’t affect your credit score, there are steps you should take to maintain and improve your rating:
Pay Bills on Time
Your payment history is one of the most significant factors in determining your credit score. Late payments can lower your score, so always aim to pay bills on time.
Keep Credit Utilization Low
Credit utilization refers to the percentage of your available credit that you use. Keeping this ratio low—ideally below 30%—shows lenders that you manage credit responsibly.
Review Your Credit Report Regularly
Checking your credit report for inaccuracies or fraudulent activity helps you maintain an accurate and strong credit history. If you spot errors, report them immediately to the credit bureau.
Contact JAAG Properties to Start Your Home Buying Journey
A strong credit score can make homeownership more accessible, but you don’t have to navigate the process alone. JAAG Properties offers Rent to Home Solutions that can help you achieve your dream of owning a home in Canada. Contact us today to learn how we can support your journey to homeownership.
