- There are too many consumer finance company accounts on your credit report. Having too much available credit can hurt your score. If you have several consumer accounts try to consolidate those balances and close the accounts.
- Your account balances are too high. As a rule of thumb keep your credit card balances below 35% of the available limit. High balances ongoing will negatively affect your credit score.
- There is not enough recent revolving account information on your credit report. Using your credit cards regularly is an important part of building healthy credit.
- There have been multiple lending institutions pulling credit reports on you.
Today’s Bank of Canada rate hold announcement marks almost four straight years that the key benchmark rate has remained unchanged, since September 8, 2010. Great news if you have a variable-rate mortgage or home equity line of credit; the prime rate stays at 3%.
The announcement noted that “the risks to the outlook for inflation remain roughly balanced, while the risks associated with household imbalances have not diminished.” With these considerations, the Bank is maintaining its monetary policy stimulus, and remains neutral with respect to the timing and direction of the next change.
The next rate-setting day is October 22nd.