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CREDIT REPAIR

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Most financial institutions review your credit report and credit score to decide if they will lend you money. If you have no credit history or a poor credit history, it could be more difficult for you to get a credit card, loan or mortgage.

 

If you have good credit history, you may be able to get a lower interest rate on loans. This can save you money over time.

 

Your payment history is the most important factor for your credit score.

To improve your payment history:

  • always make your payments on time;
  • make at least the minimum payment if you cannot pay the full amount that you owe;
  • contact the lender right away if you think you will have trouble making a payment;
  • don't skip a payment even if a bill is in dispute.

Do not go over your credit limit. Borrowing more than the authorized limit on a credit card can lower your credit score.

Use less than 25% of your available credit limit. It’s better to have a higher credit limit and use less of it each month.

If you use most of your available credit, lenders see you as a greater risk. This is true even if you pay your balance in full by the due date.

The longer you have a credit account open and in use, the better it is for your score. Your credit score may be lower if you have credit accounts that are relatively new.

If you transfer an older account to a new account, the new account is considered new credit.

Consider keeping an older account open even if you don't need it. Use it from time to time to keep it active. Make sure there is no fee if the account is open but you don't use it.

It is not unexpected that you will apply for credit from time to time. When lenders ask a credit bureau for your credit report, it is recorded as an inquiry. Inquiries are also known as credit checks.

If there are too many credit checks in your credit report, lenders may think that you are urgently seeking credit, are desperate or trying to live beyond your means.

To control the number of credit checks in your report:

  • limit the number of times you apply for credit;
  • get quotes from different lenders within a two-week period when shopping around for a car or a mortgage; your inquiries will be combined and treated as a single inquiry for your credit score.
  • apply for credit only when you really need it.

Your score may be lower if you only have one type of credit product, such as a credit card.

It's better to have a mix of different types of credit, such as:

  • a credit card
  • a car loan
  • a line of credit

A mix of credit products may improve your credit score. Make sure you can pay back any money you borrow. Otherwise, you could end up hurting your score by taking on too much debt.

 

For help with credit counselling services in Vancouver, contact us today.

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