Having good credit is an indicator of how well someone manages their money. It shows lenders how you pay back the debt. If you use less credit than you are given and pay it back on time, you are rewarded with a higher score.
In Canada, credit scores generally range from 300 to 900, with a higher number being better. However, many Canadians struggle with low credit and it affects their chances of getting better rates and borrowing money. Luckily, credit scores can change and there are ways to rebuild from a low number.
Loans Canada shows Canadians 7 different ways to rebuild their credit.
1. Build Credit With A Credit Card
A credit card can help you improve your credit score; but only when you use it wisely. A credit card shows the credit bureaus that you can manage credit. When you pay off the balance, the payment history is reported and you can improve your chances of qualifying for a mortgage, a personal loan, a car loan, and other forms of financing. Visit Loans Canada to see how this can work for you
2. Climb Credit Builder Program
The Climb Credit Builder program allows you to save your money while rebuilding your credit score. The Credit Builder Program holds the amount borrowed in a bank account while you make payments and build credit. When the loan is paid off, the money is released to you. This program helps you reach your financial goals using flexible payment options.
3. Fix Errors In Your Credit Report
Errors on your credit report can have negative consequences and can damage your credit score. If you’ve been a victim of identity fraud or notice something is wrong with your report, contact the two main credit reporting bureaus in Canada, Equifax and TransUnion.
In order to build your credit score and keep it in good standing, it’s important that all of these details are correct:
- Personal information, such as your name, address, and Social Insurance Number
- Errors in your payment history
- Out-of-date account statuses
- Inaccurate account balances
- Past negative occurrences that should no longer be on your report, such as bankruptcies or foreclosures
- Hard credit inquiries that were conducted without your authorization
- Accounts that are listed more than once
If you need to dispute anything on your credit report, Loans Canada has all the steps.
4. Credit Rehab Savings Program
With the Credit Rehab Savings Program, you get access to a loan that you use to invest by purchasing a GIC. A GIC is a guaranteed investment certificate (GIC). When you buy a GIC, you lend lend the bank or financial institution your money for a set number of months or years. This is called the term and at the end of the time frame, you get your money back, and a bit of interest on top.
When making any kind of financial decision it’s very important that you have all the information needed to make the best choice possible for your situation
5. Refresh Financial Secured Visa
Loans Canada believes that The Refresh Financial Secured Visa is one of the easiest ways for you to get approved for a credit card and improve your credit at the same time. One of the features that sets this card apart is that it offers FREE financial education! On top of that, this card has an interest rate of $17.99% compared to 19.80% which is more common.
6. Guarantor Loan
Sometimes, to rebuild your credit, you need some help from a friend or family member. That’s how LendingMate helps you build your credit score. LendingMate is a guarantor lender; so all of their customers must have a guarantor or co-borrower. A guarantor is a great sign to us that someone trusts you. This arrangement can be beneficial so find out if you qualify.
7. Consumer Proposal Pay Off Loan
Loans Canada has partnered with Marble to help people pay off their consumer proposals and help them build good credit faster. Marble works with your trustee to pay off your entire consumer proposal debt immediately. Your credit score will instantly increase from 30 to 70 points and continue to increase depending on your financial habits.
Building your credit score is an important step to qualify for loans so you can buy a home, get lower rates, and borrow money. If you’re in the process of rebuilding your score, Loans Canada has a lot of details that can help!
*Sponsored post*
This sponsored post is really coming at a great time because with it’s important for people to know how to rebuild credit.
