It’s Never Too Late – 5 Simple Ways to Fix Your Credit
What are you waiting for?
Canadians with bad credit know how difficult it is to save money on insurance, get approved for personal loans, credit cards and find affordable auto financing. The truth is, repairing your credit score isn’t something that is going to happen overnight.
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. Request a copy of your credit report
If you want to commit to bettering your credit score, you’ve got to understand your credit history first. By law, Canadians can request three copies of their credit report a year for free. Your credit report contains 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. Start using 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 painful 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. Set up a savings plan
Setting up a savings plan will help keep you focused. Building 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 that you don’t need
If you’re already struggling to get 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 go over your credit limits
Going over your credit limit looks bad 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 comes to your financial history, understanding what needs to be fixed and ensuring that you’re taking the steps necessary to rebuild your credit will only benefit your score. So, what are you waiting for?
