How to Repair Credit

Dec 13, 2017

Credit history has become one of the most important factors banks consider when deciding whether or not they want to lend you money. Your credit history can determine your ability to buy a car, rent an apartment, or even to purchase your first home. Everything you do, from paying your utility bills to making late payments on your car, is reported to the credit agencies that monitor your personal credit history. Unfortunately, many people do not realize how important their credit history is until it is too late. Poor credit history can inhibit you from getting the loan you need to buy your dream house. While this can be extremely frustrating, it is important to know that a credit repair company can help you.

A credit repair company will work with you to establish stronger credit. They do this through a variety of ways over a period of time. Remember, this is not an overnight fix-committing to repairing your credit will take time and diligence. The areas that a credit repair company will work on with you may include:

  1. Maintain Healthy Credit Card Usage

Credit Bureaus want to see that you are able to maintain a credit limit of 2,000 or more and can stay well within that limit.  They want to see regular (but not an over usage) of that credit card. They will also check to see that you are repaying what you owe on a regular basis (even if it is just the minimum payment due each month). One easy way to implement this plan is to set up an automatic bill payment on your card of choice each month and repay it each month. This gives the card regular but not over usage and will keep you well within your limit.

  1. Timely Payment Schedules

Another area that credit bureaus will consider is the timeliness of your payments. If you have a habit of making late payments it is never too late to change. The more on-time payments you make the higher your credit score will become. If you find that you struggle to remember to make payments on time, consider setting up auto-payments can help to ensure that your payments are made on time each month.

3. Future Planning
Credit Repair is a great tool to use if you feel that your credit score is preventing you from doing the things that you want to do. It is important to remember that the process will take time and require a change in your habits. A credit repair company will work with you to plan for the future to ensure that your credit score remains high. This can be done through implementing budgets, understanding your spending limitations, and working within those limitations to set up a savings plan that can alleviate the need to take on more debt. The credit repair company will also go through your credit report with you and pinpoint the areas that are lowering your credit.

For some people, the fixes may be relatively easy; for others, it may take more time and effort to get out of bad credit history. However, no credit situation is beyond repair. Becoming aware of your credit situation and working to fix it is the first step, the second is to put a plan in place.

On a final note,  avoiding any consumer proposals or bankruptcies is the best case scenario as it will handcuff your financing ability for up to 4 years. There are credit repair companies that can negotiate your debt (like a consumer proposal) but not have the same effect to your credit and future financing. Wondering how? Ask us! We are here to assist you.

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