Need to purchase a house, car, or any big-ticket item, but cannot get a loan due to bad credit? No worries– you can make things possible through improving your credit rating. How? You have control over the factors affecting your credit scores such as your debts and other payments. There is no quick and easy way to “repair” or “fix” your credit. The time it takes to rebuild your credit depends on how serious the problem is in your credit report. So, you must be diligent in paying off your financial obligations to improve your credit score.
Your credit score is a three-digit number that can make or break opportunities. If you’ve got a score of 700 or higher, then you have a good credit score. But if it falls below 650, then it is considered poor which can hinder you from getting loan approval.
However, do not be discouraged. There are manageable steps you can do to improve quickly your credit score in Canada. Here are the nine steps:
Check your credit report for errors
Checking your credit report at least once a year is one way for you to know your credit standing. You will know whether your information is correct. You can also monitor your transactions done in a certain period. There is one free copy of the credit report given to you each year from the three main credit reporting bureaus: Experian, Equifax, and TransUnion. So, it’s better to check your credit report for possible errors or mistakes and take necessary actions when you see one.
Deal with past due bills
Before fixing your credit, deal with your overdue bills first. It has a drastic impact on your credit score. You need to take note that paying off a debt that is two years older or has already been in collections will not improve your credit score. You have to wait for the mark of collections to fall off your credit report which may take up to seven years. Your efforts will best serve to keep active accounts up to date before dealing with the debt in collections.
Correct errors in your credit report
The most common errors in your credit report can be any of the following: incorrect information, duplicate accounts, or identity errors. The errors seen in your credit report has a massive impact on your credit score. If you notice any error, you need to contact immediately the credit bureaus and have your credit report be corrected.
If you have proofs about the inaccuracy such as receipt of a bill paid but not reflected on your credit report, then the dispute will be easy. However, for complicated errors like identity theft, consider seeking help from a credit repair company for quick credit repairing.
Pay your bills on time
Paying bills on time helps increase your credit score. It is one of the most important factors that greatly impact your credit standing. The payment history can account for roughly 35% of your credit score. But if you have overdue payment over the 30 days, your score can drop up to 100 points. This can take a big hit in your account and your relationship with the lender/s will be put at risk. It might cause disapproval of any loan application you will have in the future.
Set up automatic payments
If late and missed payments are the reason why your credit score is suffering, then you should set up an automatic payment. It saves you from the hassle of forgetting to pay on time. Although this isn’t for everyone as payments come directly out of your bank account each month, but it still helps a lot of people to avoid late or missing payments.
Open a secured credit card account
Opening a secured credit card account helps you build your credit history. This type of credit card requires you to make a deposit. Whatever your deposit amount is, that becomes your credit limit. The secured credit card account is best for those who do not have a credit history or have poor credit. Using the card responsibly will help improve credit score. Meanwhile, those with poor credit can rebuild their credit score.
Increase your credit limit
Increasing your credit limit will give you more favorable opportunities as you may now spend beyond your means. However, it is not necessary. But once you can manage responsibly your credit, then you will get further benefits. It will lower down your overall credit utilization and improve your credit score. You just have to keep your utilization low and pay your bills on time.
Use your credit more
When you use more of your credit and ability to pay back on time, it will repair your overall credit. If you have a poor credit score and get a credit card, then manage wisely your credit to increase your credit score. You may use more often your credit as long as you are able to pay it on time.
Keep your credit card account low
Keeping a high balance credit card account is not a good idea especially when you max out your credit card month after month yet fail to make a payment. It greatly affects your credit score. It is ideal to keep a credit less than 30% of your available credit. For example, you have a credit limit of $5,000. You should only use $1,500 of that every month to avoid credit dilemmas in the future.
So, there you have it! These are the easiest nine steps you can do to improve your credit score. If you are looking for Credit Repair Agency Canada, you’ve come to the right place. Credit Repair Now is here to help you out. We have a team for Credit Restoration Canada that will assist clients with credit-related issues. If you are one, then set an appointment with us and let’s start working on your credit as soon as possible.
Send us an email at [email protected] or contact us through our contact number +1 647-373-9651.