Happy New Year everyone! If you are like the thousands of other Canadians out there with a New Year’s resolution to become financially fit, this blog should help, especially if you need to work specifically on your credit. There are certain steps to take if you want to learn how to build great credit. If it’s time to plan to get out of debt and learn how to fix bad credit, read on!

Here are some tips to fix your credit:

• Always start by requesting your credit report from Equifax and TransUnion. It is important to know your current situation and where you stand credit history-wise in order to set a goal to reach a better rating by the end of 2018.
• Set a budget – know what you have available to spend, what you need to spend it on, and where you have room.Whatever is left over, use it to pay down your debt and build your savings up.
• Start paying down your cards one by one.
• Once you get there, try to keep your cards at only 50% of their credit limits.
• Always make more than the minimum monthly payments.
• Settle collection debts – often you can make settlements with collection agencies if you will pay the settlement amount in full.
• Send the credit reporting agency proof of any major developments like paying off a major account or a settlement to ensure that your report is updated.
• Only borrow what you can afford.
• Stay away from payday loans at all costs – they don’t build credit and can become a major problem very quickly.

It can take years to build great credit and a high credit score, and you can just as easily blow it in six months. If your debt is manageable, you can start paying down each creditor, such as each of your credit cards, one at a time. You can also look at your assets to see what you can use to consolidate your debt. However, if your debt is unmanageable, you will need to seriously consider financial alternatives.

Re-building your credit can be a long process, but if you make the resolution to stick with and build great credit, you can improve your rating and restore your financial situation.

At DebtCare, we can help you determine the best financial solution to your debt situation.

Call us today at 1 (888) 890-0888.