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Tag: how to fix bad credit

  • How to Build Great Credit – A Plan for 2018

    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.

  • How to Fix Bad Credit When You Don’t Know What the Bad Credit Is

    deb1When was the last time you looked, and I mean really looked, at your credit report? Do you even know what it says, or how to accurately read and decipher it? Far too often people end up with bad credit over mistakes and silly things – things that should be easy to fix. Not knowing what your report says won’t help you fix bad credit – you have to start at the source.

    The issue with credit and knowing how to fix bad credit is that most people don’t realize the variety of items which are reported, and that items are based on actions as well as amounts. Having a lot of debt is not the only thing that will lead to bad credit.

    For example, if a bad debt, no matter how small, has gone to collections, this will be reported to your report. A collection item for $200 will have the same impact to credit as a collection item for $2000. In the end, it is the action that is negative, not necessarily the amount.

    Balances are also a trigger for bad credit. Even if you pay on time, every month, having a card close to its limit can lead to a drop in your score. And again, the amount doesn’t matter. A credit card with a balance too close to the credit limit is the same whether it has a $200 limit or a $2000 limit, and a credit card with a late payment is a late payment whether $10 or $1000.

    When you go to the bank for credit and they say no, but can’t tell you why, they’ll likely tell you to contact Equifax or TransUnion – some banks use both, while some only use one or the other, so make sure you get your full Canadian credit report. Once you receive it, work through it, line by line, to determine how you got to where you are credit wise.

    What if you receive that credit report and see that mistakes are what caused your negative standing? You need a plan to address any issues. These will not fix themselves – you will need to do something if you want them removed. Any issues addressed should be documented and any payments or letters sent should be sent by registered mail or courier.

    Once issues are addressed, a resolution has to be initiated with the credit reporting agency – this process too is official and should include corresponding with the agency by registered mail or courier. Don’t leave anything to chance.

    Mistakes on a credit report are one of the most frustrating problems because these large companies have huge bureaucratic processes that can be hard for the average person to navigate.

    Want to learn more about how to repair bad credit or want help dealing with mistakes on your credit report? Don’t want to face those reporting agencies alone?

    DebtCare knows the ins and outs and can get those mistakes removed in a timely fashion. Call us today at 1-888-890-0888.