Repairing Your Credit Score in Canada
If you have had credit problems in the past, but are working to resolve them, you may be questioning the best options for fixing common problems on your credit report. Everyone has a different situation and personalized help from a company like 4 Pillars is the best option. However, there are a few things you can start with to get an idea of what you’re working with.
Stop Missing Your Payments
Some people will get stressed out as soon as their credit report notes a missing payment or two. While this will impact your credit, it’s only a larger issue if it is an ongoing problem. If you have a long credit history and one or two missed payments, it’s not great but it’s not the end of the world. However, if you have only a year or two of history and a couple of missed payments, this can look worse on your report.
Consider Your Credit Card Balance
If you have a few credit cards and are diligent about paying your bills on time, you can still end up with a lower credit score. The reason for this is based on how much of your credit limit you are using. If it is more than 70%, this is a red flag. It shows that you may have pending financial problems and could end up in a situation where you cannot continue to pay your bills on time. The best option is to attempt to keep your balance at 70% or even below.
Watch Out for Unpaid Collections
You can end up with a lower credit score based on unpaid collections, which might include traffic fines, unpaid parking tickets, cell phone bills, speeding tickets, and utility bills. However, once you pay off these items, you can contact the creditor to ensure they are reporting as paid and in some cases ask them to remove the collection notice from your report. In many cases, they will, and your credit will be improved in the process.
Build Good Credit History
If you have had a lot of issues with late payments, a quick fix may not be available. The best way to rectify the issue is by building good credit history. This means making sure to pay your bills on time every time. As you do this, over time the late payments will drop off and your credit will improve.
At 4 Pillars, we can help you through the process of improving your credit score. If you’d like to learn more about us, you can visit www.4PillarsDebtConsultants.ca.