2015 To Do List: How to Fix Your Credit

One of the worst things about rising debt, and the negatives that accompany that debt, is the hit your credit report takes as a result. Even after you have sought out assistance to deal with and pay down your debt, that credit report still reflects the last few years of not so great credit behaviour.

So what? Your credit score is just a number – one you never really see. What does it matter? Planning on buying a house or car in the near future? Want to rent an apartment? Need a loan? Any of these will require a credit check, and if your credit score is low, so too might be your chances of obtaining financing.

Have you checked your credit score lately? This should be done on a semi-regular basis, just so you are always aware of how your credit looks. But beware – we are not suggesting a monthly check as every inquiry shows up on your report and too many inquiries can have a negative impact.

Want to know how to fix your credit? Here are a few useful and effective tips to do so.

How to fix your credit - short-term goals

Check your report for inaccuracies – anything that looks questionable on your report needs to be looked at further. Can’t determine what it is? Call the creditor. If it is in fact incorrect make sure you have that removed from your credit report right away.

Catch up on any late and missed payments – these are some of the most detrimental activities reported to your report. If you continually miss payments or make those payments late, you will quickly be considered high risk.

Get a secured credit card – a secured credit card is one that uses your own money, rather than the creditor’s, and thus there is no risk for the lender. However, you are still required to make regular payments and display good credit behaviour.

How to fix your credit - long-term goals

Reduce your balances to below 75% of your limit – or lower. Having accessible credit on your various credit products is a great way to show good borrowing behaviour and it also demonstrates that you are not borrowing outside of your means.

Pay more than the minimums – paying the minimum balance on your credit cards specifically will make it nearly impossible to pay down that debt. Put aside a certain amount each month that is a designated debt payment and make sure to go above the minimums.

Stop applying for new credit – too many applications for new credit and you start to look like a credit seeker – someone who can’t sustain their current spending habits.

Fixing your credit will take time, but a constant attention to what needs to be done can make the process much smoother and far more effective.

For more tips on how to fix your credit please contact DetbCare Canada today by calling 1-888-890-0888.