5 Mistakes That Harm Your Credit Score and How to Fix Them Before It’s Too Late
February 26 2026,
At the Centre de Liquidation BD in Granby, we are experts in auto credit and financing for new and used vehicles. A good credit score is essential to get the best financing for your vehicle. Poor credit management can result in higher interest rates, loan denials, and unnecessary financial stress.
Discover the 5 common mistakes that harm your credit score and how to fix them to make buying a car in Granby easier.
1. Not Paying Your Bills on Time
Frequently asked question: “How do my payments affect my credit?”
Late payments are one of the biggest factors that lower your credit score. Even a single late payment can stay on your record for several years.
Practical solutions:
- Set up automatic payments for all your credit cards and loans.
- Use SMS or email alerts to never miss a due date.
- Regularly check your transactions and balances.
2. Using Too Much Available Credit
Frequently asked question: “What percentage of my credit limit should I use?”
A high credit utilization rate shows lenders that you rely too much on credit, which can harm your auto financing.
Practical solutions:
- Keep your credit utilization below 30%.
- Spread your spending across multiple cards if needed.
- Pay your balances before the end of the month.
3. Closing Old Accounts
Frequently asked question: “Is it a good idea to close an old credit card?”
Closing an old account can shorten your credit history and lower your score.
Practical solutions:
- Keep old accounts open if possible.
- Consider annual fees before closing a card.
- A long credit history is an asset for securing better loan rates for your auto financing.
4. Ignoring Errors on Your Credit Report
Frequently asked question: “How can I check my credit in Canada?”
Errors on your credit report — such as misrecorded payments or accounts that don’t belong to you — can harm your credit score. Fortunately, all Canadians have the right to access their full credit report once a year for free from the two main credit bureaus: Equifax and TransUnion.
Other Ways to Check Your Credit
Some financial institutions or apps allow you to view your credit score and report online for free (for example, through services like Borrowell or Credit Karma, which use Equifax data).
Example: https://www.borrowell.com/free-credit-score
Practical Tips
- Check your credit report at least once a year.
- Dispute any errors promptly with the appropriate bureau — incorrect balances or unknown accounts can unnecessarily lower your score.
5. Submitting Multiple Credit Applications
Frequently asked question: “Can multiple credit applications hurt my score?”
Each credit application creates an inquiry on your file. Too many inquiries in a short time can signal financial risk.
Practical solutions:
- Apply for credit only when necessary.
- Avoid multiple applications in a short period.
- We can help you plan your financing to secure the best rates for your vehicle.
Why Choose the Centre de Liquidation BD in Granby for Auto Financing?
We are credit and auto financing specialists:
- Comprehensive review of your credit file
- Personalized financing solutions for new and used vehicles
- Assistance in finding a vehicle that fits your budget and credit
- Large inventory of used vehicles and access to a wide selection of new cars
Whether you’re buying a new or used car, our team can help you get the best financing and secure the ideal vehicle.
Summary
To maintain a good credit score and secure optimal financing:
- Pay your bills on time
- Keep your credit utilization low
- Keep old accounts open
- Check and correct errors on your credit report
- Plan your credit applications carefully
Contact the Centre de Liquidation BD in Granby to benefit from our expertise and secure financing for your next vehicle.
FAQ – Auto Credit and Vehicle Financing
Q1: How can I check my credit report for free in Canada?
A: Everyone in Canada can access their credit report for free from the two main bureaus: Equifax and TransUnion.
Q2: What affects my credit score the most?
A: Late payments, high credit utilization, closing old accounts, errors on your report, and too many credit applications.
Q3: What is the ideal credit utilization rate?
A: Keep your credit utilization under 30% of your total limit.
Q4: Is closing an old credit card bad for my score?
A: Yes, it reduces your credit history and can increase your credit utilization rate.
Q5: Can I dispute an error on my credit report?
A: Absolutely. Dispute any errors with Equifax or TransUnion. The Centre de Liquidation BD in Granby can help you maximize your file before auto financing.
Q6: How many credit applications are too many?
A: Too many applications in a short time can appear risky. Apply only when necessary.
Q7: Why is my credit score important when buying a car?
A: A good score helps you get a better financing rate, more flexible terms, and easier approval for your vehicle purchase in Granby.
Q8: How can the Centre de Liquidation BD in Granby help me?
A: We review your credit file, provide personalized financing solutions, and help you find a car that fits your budget and credit.
Q9: Can I improve my credit score quickly?
A: Yes, by paying bills on time, reducing credit utilization, correcting errors, and planning credit applications wisely.
Q10: How often should I check my credit report?
A: At least once per year to spot errors and optimize your auto financing.
