If you’ve been relying on credit during the COVID-19 pandemic, your credit score has likely taken a hit. But it’s not too late to resolve the damage.

Here’s how:

Step 1: Deal with outstanding debt.

One of the biggest drains to your credit score is the debt that you owe.

While your credit score is affected by many factors, one of the most important is your debt utilization. If you are close to your credit card limits or otherwise carrying a high debt load, your credit score will be affected negatively.

The quickest way to re-establish credit — and the first step — is by taking care of this debt.

This can be accomplished by budgeting or by looking at debt consolidation methods, like settling your debts, a debt consolidation loan, mortgage refinancing, and more.

A debt counsellor can help you review your options.

Step 2: Make a plan to pay existing bills on time.

The second step to repairing credit damage is to practice good credit habits. This means paying your bills on time and in full.

This will have a bigger impact on your credit score if you have already cleaned up your outstanding debts (which is why it’s step 2).

Outline exactly what you owe and when it must be paid and take caution to ensure that all bills are paid every month in full.

What if you can’t do these two steps?

If your debt load is so high that you can’t commit to these two steps, then it’s time to consider other options.

Depending on how much debt you are carrying, it might be necessary to file for insolvency — bankruptcy or consumer proposal.

While this will harm your credit score, if it is the only way to resolve unpaid debts then it may be necessary — and you can work to rebuild credit after you file.

The important thing to keep in mind when considering insolvency is that you need an ally on your side to make sure you stay protected.

Our DebtCare Canada team can do that and review your credit options to ensure it’s the right choice for you.

We also offer a credit repair program that deals with:

• Errors on your credit report
• Old items continuing to report
• Duplicate items reporting
• Disputes
• Past bad credit – late payments, defaults, bankruptcies
• Rebuilding credit after bad credit history
• And more…

We help you repair your credit – hassle-free.

Learn more about your options today. Call or text 1-888-890-0888 for a free consultation or visit www.debtcare.ca.