You might already know that it’s very important to have a good credit score. However, your current credit score might just be the opposite, which will make it difficult for you to get access to new and reputable credit sources. This is why it’s important for you to act quickly so that your bad credit score will become excellent again in no time.
That said, here are some tips to follow so that your bad credit score can significantly improve:
Get A Copy Of Your Credit Report Every Year
If you’ve never checked your credit report, then it’s high time you did. The two credit bureaus to contact in Canada are TransUnion Canada and Equifax Canada. Each one will usually release a free copy of your credit report every year. You just need to be patient because it takes a few weeks for that report to be sent to you.
Once you get your credit report from either bureau, you should examine each credit transaction carefully to spot errors. Some transactions can be present in one credit report while the other credit report might not have it. It’s very important that you check each transaction attributed to you so that errors can be quickly rectified. If you don’t do that, you might be surprised by how errors can impact your credit history, and downgrade your credit score.
Allow Any Old Credit Entries to Remain, If Accurate
Using debt is often likened to a double-edged sword, which can both benefit and harm you at the same time. Using credit is important because it will show that you can be trusted to repay any debt you got but some people may have a few hits in their credit history, and this may lower their credit score.
If you can repay debts before their due dates, this will form your long-term credit history and your credit score will improve. This means that you are building a history of repaying debts on time, which is what creditors like to see in your credit history.
If you’re in need of cash but have not yet fixed your credit score, you can opt to avail of loans for bad credit, which won’t only allow you to get the money you need but also help you build a more reputable credit history provided you repay the loan in a responsible and timely manner.
Learn To Use Credit Wisely
If you have a bad credit score, that could have been brought about by misuse of credit in the past. If you want to develop a better—even excellent—credit score, it’s necessary to use credit the right way. People have many reasons for having a bad credit score, and one of those may involve fraudulent transactions reported by the creditor and attributed to you. Other reasons could be paying past the due date, defaulting on loan payments, or even bankruptcy. If these have caused you to earn a bad credit score, it would be wise to attempt to rebuild a good credit score by availing of other forms of credit that you are certain you can pay for.
Going for no credit check payday loans is one way to start building a good credit history so that the credit bureaus will perceive you favorably. With this, you will be able to take out a loan and it will automatically be repaid from your paycheck every payday. In the end, you gain a better, much improved credit score.
Increase Your Credit Limit
This is rather tricky because, on the one hand, you want to build up a great credit history. But on the other hand, you should only get credit that you are confident you can pay for. So, you need to strike a balance between these two financial goals. If you consistently repay your line of credit on time and are even able to repay the loan in full, that benefits your credit score a lot.
Set Up A Repayment System To Avoid Late Payments
Credit issuers do not really like credit users to incur huge debts due to late payments. If you do use credit, be sure to set up a repayment system right away. This means using some of your income every month to pay a definite amount. In the long run, you would be paying less penalties and, in due time, the balance will be repaid as well. This will also prove to your creditors that they can trust you to repay any future debts.
Take note that online loans are also a good way to contribute to your credit score if you don’t forget to repay debts. Just keep track of due dates and payment amounts in your organizer or in a spreadsheet in your computer. Remember, forgetting to pay for installment payments is no excuse as far as your creditors are concerned.
Learn How To Use Credit Cards Properly
Credit cards seem to be a much-abused form of credit among credit users since these are relatively easy to apply and qualify for. Therefore, it’s not surprising that many consumers opt to get their own credit cards.
However, this doesn’t mean you should max out each card just because you can. You might be surprised by how much you’ll be paying for. Moreover, don’t keep the balance at high levels month after month since it defeats the purpose of trying to correct your bad credit score. It’s advisable to use only 30% of your credit limit and then repay those loans as soon as possible. That’s one way to a better credit score.
If something happens that makes your income less stable, such as transitioning to a new job, you may be forced to pay only the minimum for your credit card bill. But that’s alright, as it will still count for something. Make it a point to pay more during the next payday so that creditors will see that you’re really making an effort.
Rely On A Secure Credit Card Account
If you have a bad credit score, it may be useful to get yourself a secure credit card account. This will help your credit history look more favorable. To apply for a secure credit card account, it is necessary to deposit a fixed amount first before you’re allowed to use the card. This initial deposit is a form of collateral so that your creditors are assured that if you fail to pay then at least they can get the collateral you deposited.
Credit issuers consider secure credit card accounts as beneficial to the credit history of anyone with poor credit. This is because it shows that you are willing to stay within a budget that you know can be paid for with your income. Credit issuers may be more at ease dealing with someone who stays within certain limits of their spending capacity. If you keep this up, your credit score may eventually go up and you can avail of other forms of credit in the future.
Develop Better Money Management Skills
One major problem that many consumers have is learning how to stick to a monthly budget inclusive of credit payments. If you have a bad credit score, you probably know this well because there never seems to be enough money coming in.
If you want to improve your credit history, you need to set aside enough money per payday specifically for necessities, as well as credit payments.
If you’re unsure how to make a budget, try this simple method:
Make a spreadsheet where you can itemize all your regular payments for necessities. In a separate page, encode the amount you need for your credit payments.
Then, look at the total amount you need to set aside per month. That’s your magic number.
Does it fit within your monthly disposable income? If yes, then you’re now on your way to developing better money management skills. If not, you may have to adjust some entries in the spreadsheet that you can do without. The important thing is to prioritize being able to buy what’s necessary for your household while also paying for your debts.
Conclusion: Get Help from A Debt Counselor, If Necessary
Some people need the assistance of a debt counselor when they are saddled with so much debt that they find it hard to pay for these on time. A debt counselor can be helpful in identifying problem areas in each credit report you get.
For example, do you consistently keep maxing out credit cards then neglect to pay for the balances? Or maybe you don’t get a copy of your credit report regularly? Some people also like to keep opening new credit card accounts even though previous credit card bills are still pending.
The credit report from each credit bureau will reveal to the debt counselor your habits. The debt counselor can then show you these credit use patterns and explain what you’re doing wrong. This professional will recommend ways by which you can adjust your use of credit so that your bad credit score will be eliminated. This means that if you have way too much debt, you can avoid missing some payments by negotiating a reasonable repayment schedule with your creditors with the assistance of your debt counselor.
OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.
However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.
The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.
Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.
The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.
The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.
This report by The Canadian Press was first published Oct. 17, 2024.
OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.
In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.
The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.
Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.
In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.
It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.
This report by The Canadian Press was first published Oct 16, 2024.
OTTAWA – Statistics Canada says manufacturing sales in August fell to their lowest level since January 2022 as sales in the primary metal and petroleum and coal product subsectors fell.
The agency says manufacturing sales fell 1.3 per cent to $69.4 billion in August, after rising 1.1 per cent in July.
The drop came as sales in the primary metal subsector dropped 6.4 per cent to $5.3 billion in August, on lower prices and lower volumes.
Sales in the petroleum and coal product subsector fell 3.7 per cent to $7.8 billion in August on lower prices.
Meanwhile, sales of aerospace products and parts rose 7.3 per cent to $2.7 billion in August and wood product sales increased 3.8 per cent to $3.1 billion.
Overall manufacturing sales in constant dollars fell 0.8 per cent in August.
This report by The Canadian Press was first published Oct. 16, 2024.
