So you have bruised credit and do not have a lot of time to address the issues. Here are five – count em’ – five quick changes you can make today to improve your credit immediately.
Stop Fighting Your Phone Company
This is the most common reason why many Ontario residents have damaged credit. Rogers or Bell has overcharged you and the fight is on. The problem is that while you carry on with your righteous cause – your credit score is being negatively effected every month. The worst part is that it is usually over less than $200 but is going to cause you to end up paying thousands of dollars more in interest on everything from your car loan to the mortgage. The instant fix is to pay that bill to zero and then go on fighting them! You can still win and your credit rating will thank you.
Check Your Report For Errors
It is common knowledge in the mortgage industry that 1/3 of Canadians have errors on their credit report. This can be anything from someone with the same name having an account reporting to your bureau all the way to outright fraud. The instant fix is to order a copy of your personal credit report here (make sure the product is called Credit Score for about $24). Go over the information and follow the instructions within if there are existing inconsistencies.
Don’t Max Out Your Cards
This should go without saying however if you have three MasterCard accounts and one is maxed out and the other two are sitting at a $0 balance – you are doing damage without knowing it. One of the determining factors of the overall strength of our credit scores is available balances to the maximum high credit limit. A better distribution of the debt is carrying a third of the balance owing over the three cards in order to keep your score strong.
Keep Your Old Account Active
There is a temptation to cut up that old credit account in preference to the new one with the incentive program. Don’t be fooled! The strength of your credit stands on that pillar – that first credit account that has been active since like 1995! Keep it alive and maybe even show it some love once in a while and use it in order to keep the credit blood flow going. Your credit score will keep you smiling for years to come.
Consider Debt Restructuring
If you find yourself one of those who are drowning in consumer debt and none of the above is even a plausible solution for you and your family – it may be time to consider your options in Ontario. If you do own your home – there are a number of viable options to you. A simple debt consolidation provides my typical client anywhere from $700-1000 in monthly payment relief. To learn more from a first hand experience – check out “Greg and Fiona’s” story. A great side benefit from this process is that there is an almost instant improvement to your credit as well.
Well this rounds out our five quick changes that can immediately improve your credit rating. Having dealt with hundreds of clients just like you and scenarios similar – take comfort that your situation is not hopeless. If you decide today to take control of your credit report and implement the tips here – you will be well on your way to an improved financial outlook. Your story is important to me – Ontario residents- tell me below in 100 words or less what about your debt keeps you up at night and I will provide the prescription for a better night’s sleep.
