| |
A negative credit report in Dartmouth can have a significant impact on your ability to obtain a loan. Fortunately, bad credit can be repaired. Below is a list of some of the things you need to know about a poor credit report, and what you can do to fix it.
- Bad marks will not be erased from your credit report for up to seven years, except for in very special circumstances.
- If you cannot wait for seven years to pass, you can try to fix your ratings on your own.
- Acquire a copy of your credit report, and determine where your problem areas lie.
- Pay your bills. If you only owe a minimal amount on an old credit card, try to save up that amount, contact the credit card company, and pay it off.
- Paying off your debts is one of the most efficient ways to repair your credit, but if you find that monthly payments are too difficult, you may have to consider bankruptcy. Bankruptcy tends to be considered the last resort.
- To begin repairing credit, borrow fully secured money. Secured loans are those that are backed up by an asset or guarantee (For example, car loans). If you are unable to pay, your creditor will simply sell the “security”. You may also wish to have someone co-sign or guarantee your debt. This will ensure that if you pay the loan your credit record will improve, but if you don’t, your co-signor is responsible for the payment.
- Next, get a secured credit card. This can be easily done by placing a certain sum of money on a deposit with a bank, and pledging the money as security. If you are unable to make the necessary payments, the bank will take the money out of your deposit, and reduce your available credit.
- Borrow for an RRSP. Banks tend to appreciate people with RRSPs because they seem to be looking towards their future. When you receive a tax refund, use that money to repay the loan. This will allow for rapid improvement of your credit report.
- Borrow even if you have no need. Get a small line of credit to use for paying off bills, then pay off the line immediately. Repeating this step will improve your credit report quickly.
The best advice for credit repair is to pay your bills on time. You want to prove that you can handle your finances, so that when you borrow money it is not because you must, but because you want to.
|
|
