Repair Bad Credit
Are you suffering from a poor credit rating? All is not lost. It is possible to reverse bad credit and continue enjoying financial products from different lenders and creditors. We’ll take you through some simple steps to help you repair credit and know how to maintain it.
Get a copy of your credit report
Every year, make a point of requesting for a copy of your credit report from any of the reputable credit bureaus. Get a copy from one of the two credit reporting agencies in Canada – Equifax Canada or Trans Union Canada.
Review your report for errors
Come up with a plan
Before you even seek credit repair Toronto, it is important to understand where your money goes and the steps that you can take to reduce your expenses or increase your income. Create a plan to deal with any outstanding or missed payments you have. You may ask a credit counselor to help you in budgeting and credit repair.
Avoid late payments at all costs
Whether it’s a utility bill or a credit card payment, failing to fulfill your financial obligations on time can have a really poor effect on your rating. In order to ensure your payments are made on time, you may consider setting up an automatic payment plan where the money is deducted on a specific date of the month.
Don’t exceed your credit card limit
Ever heard of credit utilization? This is simply the amount that you use on your credit card compared to what is made available to you by the credit card issuing bank. If your credit card utilization is higher than 30%, it might impact negatively on your credit score. Aim at using only a small portion of the amount that is made available to you. In fact, lowering your credit card balances can instantly improve your score. Stay away from applying for new credit cards or any other form of credit until you have dealt with the existing debt. Your main focus should be on paying back the pending balances and reestablishing your credit history by making on-time repayment going forward. Retain credit cards that have the longest payment history because they have a positive impact on your credit score. Getting into debt is easy and falling into further debt is way easier. You need to think about habits that contributed to your financial situation and take a step to manage your credits more responsibly. Whether it means reducing the amount of times you go shopping or cutting back on going out with friends, simple lifestyle habits can help you to spend less and avoid reaching your credit card limit.