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Rebuilding Bad Credit

Many people make mistakes when it comes to credit however you can rebuild your credit and become a borrower in good standing. CreditHelpFinancial and the staff can answer your questions on how to accomplish this. These days it is important to have a good credit history if you want to get a car loan or any loan for that matter. The higher your score, the better the terms of your loans and credit will be (e.g. lower interest rates).

However, you have harmed your credit history and score if you do any of the following:

  • you did not pay at least the minimum balance on your debts
  • you made late payments on your loans
  • you went over your credit limit
  • you missed one or more payments
  • you stopped making paying loans altogether
  • you have too much credit and you use it on a daily basis to get by
  • your have any collections on your report
  • You have had a car repossessed voluntarily or involuntarily
  • you are in a consumer proposal
  • you declared bankruptcy.

A bad credit report and score can mean you do not get approved for a loan, or you do not receive the best loan terms (e.g. higher interest rate). At Credithelpfinancial you can get pre-approved for a car loan, this will take the guessing out of the equation. We also have in-house programs and lease to own programs you can still qualify for!!!!!!!!!!!!!

5 Steps to rebuild your credit history

1. Apply for a secured credit card. Secured Credit Cards require you to leave a deposit with the credit card issuer as a guarantee. The deposit is usually equivalent to the card limit, but can be higher. For instance, if you want a limit of $500, you may be asked to leave a deposit of $500. Once you've shown that you pay the balance regularly and have built a payment history, you can ask that the security requirement be dropped and that the deposit be returned You can go through your bank or go to www.capitalone.ca. If you need additional information you can talk to the staff at Credithelpfinancial..com

2. Make at least the minimum payment by the due date. If you cannot pay off your balance in full each month, make at least the minimum payment on each of your debts on time. Late payments will count against you and negatively impact your credit score and credit report.

3. Do not apply for too many credit and loan products. Having too much credit can also negatively affect your credit report. Keep your available credit at a minimum. Do not fill in too many applications for credit and loans because every time you do, your credit history is checked. Each credit check can affect your credit score.

4. Review your statements. When you are in debt, avoiding your monthly statements may cost you. Mistakes happen and you only have a limited time to correct them. Always review your statements to make sure there are no transactions charged in error and that your payments are recorded correctly. Report any mistakes as soon as possible.

5. Check your credit report annually. You are entitled to receive a free copy of your credit report annually from each of Canada's two credit rating agencies, Equifax and TransUnion. Check your credit report annually for errors and get them corrected as soon as possible or you can apply at www.credithelpfinancial for a pre-approval

One last word from Credithelpfinancial

Prepaid cards do not help you build credit. You may choose to use a prepaid card as a payment option, but its use is not tracked by the credit rating agencies.

Use credit responsibly

There are no quick fixes to repairing your credit history. You have to prove you are a responsible borrower to lenders, and that may take time. Whether you are rebuilding your credit history, or trying to maintain a good credit score, you should always use credit responsibly. If you need any additonal information to not hesitate to contact the professional staff at Credithelpfinancial.