How to Repair Bruised Credit
57% of Canadians don’t check their credit scores.
Your credit score can determine whether or not you are granted a residential lease or a mortgage?
It also has the power to determine your quality of life by controlling things like purchasing a vehicle. It's incredibly important to maintain a good score and be consistent over time. In this article, we will go over how you can fix your credit.
1. Pay off your debts
The quickest way to get out of debt is to pay off your debts. You should prioritize paying off small debts first before paying off your larger debts. You’ll get a better credit score by paying off small debts because you’re showing creditors that you are able to pay off your debts.
If your debts are via credit cards, then your credit card balance should be your top priority, then other small debts like utility bills, dental bills, and student loans should be paid next.
2. Pay your bills on time
You can also improve your credit score by consistently paying your bills on time. Late payments hurt your credit score by damaging your credit history. If you have a bad credit history, this will affect your credit scores.
However, you shouldn’t worry too much if you have a late payment on your credit history. Having just one is fine, but you shouldn’t let the late payment become a habit. Remember, if you can pay on time, do it!
3. Utilize your credit limit
You’ll improve your credit score by using more of your credit card’s limit. This shows creditors you are in good financial standing and are able to handle more credit. Utilizing more of your credit card’s limit is one of the best ways to increase your credit limit.
Most people don’t use more than 30% of their credit card’s limit - this is a missed opportunity to improve your credit score!
4. Get a new credit card
You can also improve your credit score by opening a new credit card.
A new credit card will increase your available credit and show that you can handle a credit card. If you’re willing to pay off your credit card balance on time, it will show that you know how to use credit properly.
It’s important to keep in mind, though, that if you aren’t able to pay off your credit card balance on time, this will hurt your credit score. If you’re trying to improve your credit score, you should consider opening a credit card and then pay off your balance on time every month.
5. Find a credit counselor
You can also improve your credit score and finances by finding a credit counselor. A credit counselor will help you set up a budget and also help you understand how to utilize your credit properly.
You can get started in Canada by going to https://nomoredebts.org/ to speak with a Credit Counsellor. All appointments are always free and you can schedule it by calling them at 1-888-527-8999 option #1
A credit counselor can also help you find a credit card with a low interest rate and a low annual fee. Having a good credit card with a low interest rate and a low annual fee will help you improve your credit score.
THE BOTTOM LINE
Don’t worry, you can always improve your credit score. It’s never too late to fix bad credit and improve it. You just have to be realistic and take the steps necessary to improve your credit score.
Level Up Mortgages provides alternative lending in Canada to fiscally responsible couples. Contact us now for your mortgage and investment needs.
See what you qualify for or contact Paul to get your pre-approval.
Paul Davidescu (www.levelupmortgages.com)
Level Up Mortgages
604-809-3188
paul(at)levelupmortgages.com
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