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TRENDING BASIC MONEY MANAGEMENT TIPS
10.05.2020 / Borrowing « Back to all articles
Boosting Your Credit in One Month
Your credit score is a key that can open many doors. The higher your credit score, the more competitive your interest rates can be for mortgages, auto loans, and credit cards. Although achieving a high score takes time and effort, there are several simple ways to boost your low score by a significant amount in just one month.
Review Your Credit Report
Before you can make a plan to improve your credit score, you need to know what's in your credit file. Request a free copy of your report from TransUnion Canada and Equifax Canada, or use an app that shows you both reports. Review every line and make notes of any items that seem suspicious. From there, you can make your action plan.
Pay Down Debt
Why not start with the obvious? The best way to quickly improve your credit score is to reduce the amount you owe by paying off as much debt as you can. If that sounds impossible, think again. The next time you receive a lump sum, consider using it to pay a debt. If you don't expect a big cheque anytime soon, be sure to at least pay the minimum amount due on all your accounts, so you don't get behind.
Dispute Incorrect Information
Incorrect information can show up anywhere on your credit report. Look at the hard inquiries, late payments, accounts sent to collections, and personal information. Next, file a written dispute with the credit reporting agency. If they can't verify that the data is correct within a specific time frame (often 30 days), they have to delete it from your report. Removing negative information is a great way to boost your credit score quickly!
Make Deals with Debt Collectors
If you have accounts in collections that can't be removed through the dispute process, contact the collection agency. If you can pay the amount in full, ask the credit agency for a deal where they remove the item from your credit report once it's settled. If they do that, it can vastly improve your score. However, if the agency is only willing to add a note that states the debt is paid in full, it won't help your score. If they agree to delete the negative information, get an official letter stating that fact before you make the payment.
Increase Your Available Credit
Lowering your credit utilization rate is another powerful way to improve your credit score. You can do that by paying off debt, convincing your creditors to increase your limits, or becoming an authorized user on a responsible person's well-established credit card. Before you try any of these approaches, be sure you can handle what you're getting into. Increasing your available credit may not be a good idea if you lack the self-discipline to avoid running up more debt.
Credit Talk
10.05.2020 / Borrowing « Back to all articles
Boosting Your Credit in One Month
Your credit score is a key that can open many doors. The higher your credit score, the more competitive your interest rates can be for mortgages, auto loans, and credit cards. Although achieving a high score takes time and effort, there are several simple ways to boost your low score by a significant amount in just one month.
Review Your Credit Report
Before you can make a plan to improve your credit score, you need to know what's in your credit file. Request a free copy of your report from TransUnion Canada and Equifax Canada, or use an app that shows you both reports. Review every line and make notes of any items that seem suspicious. From there, you can make your action plan.
Pay Down Debt
Why not start with the obvious? The best way to quickly improve your credit score is to reduce the amount you owe by paying off as much debt as you can. If that sounds impossible, think again. The next time you receive a lump sum, consider using it to pay a debt. If you don't expect a big cheque anytime soon, be sure to at least pay the minimum amount due on all your accounts, so you don't get behind.
Dispute Incorrect Information
Incorrect information can show up anywhere on your credit report. Look at the hard inquiries, late payments, accounts sent to collections, and personal information. Next, file a written dispute with the credit reporting agency. If they can't verify that the data is correct within a specific time frame (often 30 days), they have to delete it from your report. Removing negative information is a great way to boost your credit score quickly!
Make Deals with Debt Collectors
If you have accounts in collections that can't be removed through the dispute process, contact the collection agency. If you can pay the amount in full, ask the credit agency for a deal where they remove the item from your credit report once it's settled. If they do that, it can vastly improve your score. However, if the agency is only willing to add a note that states the debt is paid in full, it won't help your score. If they agree to delete the negative information, get an official letter stating that fact before you make the payment.
Increase Your Available Credit
Lowering your credit utilization rate is another powerful way to improve your credit score. You can do that by paying off debt, convincing your creditors to increase your limits, or becoming an authorized user on a responsible person's well-established credit card. Before you try any of these approaches, be sure you can handle what you're getting into. Increasing your available credit may not be a good idea if you lack the self-discipline to avoid running up more debt.
