Improving Credit Scores With Debt Consultants In Victoria

Although a lot of consumers do not know their credit score, this is a vital piece of information to track. Banks, financial institutes, and even car dealerships in Victoria use the consumer’s credit score to set interest rates, determine the risk of lending, and in offering special rates or financial advantages for those with high scores.

If you have bumps or bruises on your financial record, working with debt consultants can help you to restore your credit score. While it is not essential to have the best score, banks and lending institutes across Canada look for scores of 660 to 724 for a “good” rating, while 725 to 759 is considered very good. Anything over 760 and up to the maximum score of 900 is considered to be an excellent score.

Managing Debt

To build a credit score, even after a bankruptcy, our debt consultants recommend carrying some level of debt. However, this debt should not exceed 30% of the total amount of credit available, and ideally keeping it at about 10% is the ideal option.

Carrying some good debt, which does not include a home mortgage, allows creditors to see the consumer is able to manage debt and make all monthly payments on time.

Other Factors

As our debt consultants will explain, credit scores are not just based on current debt compared to total credit available. They also include the past history of on-time payments, the age of the credit, and the number of hard inquiries (credit applications) reported to Equifax and TransUnion, the two Credit Reporting Bureaus in Canada.

Consumers in Victoria with concerns about rebuilding their credit score can talk to our professionals at 4 Pillars. Give us a call today at 866-690-3328 to schedule your consultation.