It’s important to note that repairing bad credit is a bit like losing weight. It takes time and there is no quick way to fix a credit score. The best advice for rebuilding credit is to manage it responsibly over time. If you haven’t done that, then you need to repair your credit history before your see your credit score improve.
The following tips will help you improve your credit score:
Monitor your payment history. Your payment history is the most important factor for your credit score. Always ensure to make your payments on time, contact the lender right away if you think you’ll have trouble paying a bill.
Use credit wisely. Don’t go over your credit limit. Use only a percentage of your available credit. Try to use less than 35% of your available credit. If you use a lot of your available credit, lenders see you as a greater risk. This is the case even if you pay your balance in full by the due date.
Increase length of credit history. The longer you have a credit account open and in use, the better it is for your score. Your credit score may be lower if you have credit accounts that are relatively new. Consider keeping an older account open even if you don’t need it. Use it from time to time to keep it active. Make sure there is no fee if the account is open but you don’t use it. Check your credit agreement to find out if there is a fee.
If you’re looking for a credit counsellor in Toronto, get a quick assessment with us today or call us at 416.900-2324. We will help you develop a plan, reduce your interest costs and get out of debt over time.