Repair Your Credit – 10 Steps To Help Get You There
ONE
Get a copy of your Credit Report. WHY? – Because to repair your credit, you need to know what is on your credit report so you can make any changes that might be necessary. You are entitled to free credit reports from each of the nationwide credit reporting agencies. However, you need to make a request – by phone, by fax, via Canada Post or in person.*
Here are some links with more info:
Financial Consumer Agency of Canada
Here are the links to the two credit reporting agencies in Canada:
IMPORTANT: Once you have your Credit Reports delivered to you, be sure to check both reports for errors or inaccuracies. If you discover any, you need to call the reporting agency and have the item removed or corrected. Keep in mind that these reports may differ from each other, so check them carefully, and get the inaccuracies corrected immediately.
*It may take as much as two weeks for you to receive your reports. In the meantime, you can also get a reasonably accurate INSTANT REPORT online free from CreditKarma, HOWEVER, please keep in mind that you still need to apply for your Credit Reports from the above listed reporting agencies.
TWO
Do not close off old accounts or credit cards as this will reduce the historic record of your credit.
THREE
Reduce unnecessary spending to increase your savings. You need to know where every penny goes, so keep your spending under control by tracking it.
FOUR
Automate as many of your payments as you can through your bank so that you NEVER miss a payment.
FIVE
If you don’t already have a credit card, get a prepaid card and use it to pay your normal bills. This helps build your credit.
SIX
Pay all of your accounts on time and in full every month. Make credit card payments at least 3 business days before they are due.
SEVEN
Never use one credit card to pay off the balance of another one.
EIGHT
Unless absolutely necessary do not apply for more credit. A prepaid card, as mentioned above, is acceptable.
It can actually be beneficial to your credit rating if you do have more than one credit card or loan source. Small balances paid on time every month will build credit scores faster than one large credit balance on one card.
NINE
Always make extra payments whenever possible and concentrate on placing your largest and/or extra payments on higher interest rate loans/credit cards first. When one debt is paid off, transfer that large payment amount to the next debt on the list.
TEN
Beyond this you need to have a realistic SAVINGS GOAL to accumulate money and you need to stick to your goals.
The very best way to reach your goals is to know what they are.
- Write them down, be specific, and realistic.
- Go over your goals often and re-write them when they need adjusting.
- Celebrate your victories, even the small ones, because they count too.
Alternately, if you are struggling to follow these guidelines, don’t be afraid to reach out for help. Credit Counseling Services are there to help you and can provide good, solid advice when you need it. Here’s the link to the website where all their services are detailed and here’s the phone number – (844) 889-3474
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