5 Simple Ways to Repair Your Credit

Repair Credit Score in Canada

Individuals with bad credit are aware as to how hard it is to save money on insurance, get approved for personal loans, credit cards and look for affordable auto financing. The reality is, repairing your credit score isn’t something that is going to happen in a flash.

Having a great credit score isn’t effortless. Like most things in life, you’ve got to work for it. However, these 5 small steps will be sure to help your credit score raise.

  1. Ask for a copy of your credit report
    If you wish to improve your credit score, you need to review your credit history first. By law, Canadians can request three copies of their credit report a year for free. Your credit report consists of details about your accounts, any items that have been listed in public records and inquiries that have been made to your report. A hard copy of your credit report will help you understand more clearly what aspect of your finances needs a little more TLC.

  2. Use cash
    Although using credit to pay for things is convenient, incorporating more cash into your method of spending could help you save a ton of money. Swiping or tapping your credit card is not as hectic as paying with cash, and saving money is hard to do if you’re not the saving-money-type, but paying with physical cash will put into perspective how much you’re spending, which might deter you from spending at all.
  3. Build a savings plan
    Creating a savings plan will help keep you focused. Setting up a financial road map could help you better organize your money, which in turn will help you pay back your creditors faster while being able to save money. Instead of paying back debt and saving money with the motivation that you’ll have less to spend, think of how your credit score will benefit and how much you’ll have saved for the future.
  4. Don’t borrow money needlessly
    If you’re having a hard time getting out of debt, don’t apply for more credit. Every time you apply for a loan it gets reported to one of the major credit bureaus and if you’re already struggling to pay down your debt, the last thing you want is another mark on your credit report. Take a few months to work on the debt that you have before applying for more credit.
  5. Don’t exceed your credit limits
    Going over your credit limit appears negatively on your credit history and drains your wallet. Whether you go 1 dollar over your limit or 100 dollars, your creditor will likely charge you a penalty fee and your credit score will sink. If you find that you’re constantly going over your credit limit, points 2 and 3 will help.

When it is about your financial history, knowing what needs to be fixed and ensuring that you’re doing what is necessary to rebuild your credit will only increase your score. Visit Canada Auto Experts or call 1-855-550-5565 to talk to a credit specialist today!

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