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Tips To Improve Your Bad Credit Score

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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.

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Economy

Canada’s unemployment rate holds steady at 6.5% in October, economy adds 15,000 jobs

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OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.

Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.

Business, building and support services saw the largest gain in employment.

Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.

Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.

Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.

Friday’s report also shed some light on the financial health of households.

According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.

That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.

People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.

That compares with just under a quarter of those living in an owned home by a household member.

Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.

That compares with about three in 10 more established immigrants and one in four of people born in Canada.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Economy

Health-care spending expected to outpace economy and reach $372 billion in 2024: CIHI

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The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.

The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.

CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.

This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.

While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.

Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.

The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.

This report by The Canadian Press was first published Nov. 7, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

The Canadian Press. All rights reserved.

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Trump’s victory sparks concerns over ripple effect on Canadian economy

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As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.

Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.

A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

More than 77 per cent of Canadian exports go to the U.S.

Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.

“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.

“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”

American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.

It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.

“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.

“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”

A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.

Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.

“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.

Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.

With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”

“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.

“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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