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Smart Money Club: How to Rebuild Credit Quickly

prud1If you are finding it hard to obtain credit products or are worried that your credit report and credit score may not be up to par, you may be wondering what you can do to make things better. If you’re wondering how to rebuild your credit quickly, we can help. Here are some steps to take to bring up your credit to a level that makes life just a little bit easier.

Step 1: Understand that rebuilding your credit completely can take time, but there are some things that you can do to improve it fast. Rebuilding credit quickly means quick action.

Step 2: Request your credit report from Equifax online here: http://www.consumer.equifax.ca/home/en_ca. Since this is what lenders will look at to judge your level of risk, it is important for you to also know what it says.

Step 3: Identify and deal with existing issues. These may be unpaid bills, high limits, overages, etc. However, issues may also include errors which need to be addressed, which can sometimes be a complex process – one that involves contacting the lender, receiving a letter to confirm the error is in fact an error, and resolving the issue with the reporting agency.

If the issues are unpaid items in arrears or default items, your options are as follows:

  • Pay the debt
  • Settle the debt
  • Come up with another plan, such as a consumer proposal

Once bad items have been resolved you must rebuild immediately. Here are a few ways to do this:

Secured cards – get one but…

Limits are so low that these often don’t really demonstrate your ability to make a large payment. Also, be sure to stay well under the limit. Many people use them not realizing for example that a credit card with a $200 limit with a balance of $150 may trigger a note on the credit “proportion of balances to limit too high” – be aware of this.

Loans

These are great because they offer a fixed amount with a fixed repayment, and also because they are not revolving and so carry no maxing out potential. Loans are good because they demonstrate a fixed monthly payment larger than a credit card. There are of course several different types of loans: personal loans, car loans, GIC loans, etc. All rebuild credit quickly if you pay on time.

Most banks will offer high ratio mortgage financing to someone who has gone 2 years since having a credit problem with 2 years of re-established credit. So, that credit many seem bad now, but there is a light at the end of the tunnel!

Want to find out about how to rebuild credit quickly with a loan? Call Prudent Financial today – we offer loans to those with bruised credit, even undischarged bankrupts: 1-888-852-7647.

 

 

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