5 tips for rebuilding credit in Burlington
5 tips for rebuilding credit in Burlington
Posted on July 14, 2022
Your credit score is not just a number. It's an important indicator to lenders and banks of how well you have managed your finances over the years.
Your credit score is your pass to qualifying for a loan. It also helps you secure a credit card and as well helps you lock in a good deal on a mortgage.
Canadians know the importance of credit scores and how they can impact the daily life of each citizen. How can good credit be rebuilt? Our Burlington auto loans team offers some suggestions.
How can good credit be rebuilt?
Check your credit report regularly: A good credit score is built when the habit of frequently checking your credit score is adopted.
Credit reporting agencies like Equifax and TransUnion are there to give reports on how you are faring with your various creditors.
Therefore, if you are looking for ways to rebuild your credit score, checking your report regularly is a step in the right direction.
Take care of late and outstanding payment: Your report gives you full details of your credit product, your bills and how you have been paying them.
Then if there are any outstanding payments, paying them would help rebuild your credit score. Also, if any error is noticed in your credit account, it is essential to fix them.
Open a secured credit card: When your lenders see you as a risk, getting loans and qualifying for a credit card can be difficult.
The best option available is to open a secured credit card, which will offer an upfront security deposit that will equal or exceed your credit card limit. This step helps greatly in rebuilding your credit.
Early payment: Another strong determinant of your credit score is your payment history. Making payments after due dates do not present you well to the lender. Paying down your debts early and keeping a low credit utilization ratio is a good step in rebuilding your credit
Limit your credit enquiry: Sometimes, we are always tempted to make use of the credit. And often, the use of this does not help the rebuilding process. Each time you request a loan, your credit report will be pulled.
Lots of enquiries about your credit report are a red flag to creditors. Opening too many accounts could also hinder your credit. Therefore, it is advised to open one account at a time.
What errors should you watch out for in your credit report?
- Errors made in your personal information, like date of birth or mailing address
- Errors like payment made early is shown as late in credit and loan account
- Negative information about you on your account that has exceeded the number of years should stay on your account. Negative information is to stay on the account for a certain period.
- The account listed that you never opened could be a sign of theft
When any of these mistakes are noticed, we must correct them to help improve our credit score. It can take a little while for the credit agencies to make the change, so check regularly and have your report corrected whenever you notice the mistake.
Contact Unique Chrysler for help, advice and competitive Burlington car finance and leasing.