Help with Boosting Your Credit Score

Increased unemployment rates, and tighter credit requirements are taking a toll on some Canadians in this economic climate. It’s a pretty sure bet that many people aren’t going to fit in a traditional banks financing grid as easy as they might have just a year or two ago.

There are solutions to every problem, so let’s see if I can help you determine if your problem is one that can be quickly repaired, or if it might be a longer process to recovery.

The credit repair process is something I am very familiar with, which makes me very qualified to help some credit challenged clients with most of their problem through a variety of techniques. If your situation is unique, or beyond my expertise, I will not hesitate to outsource your challenge to other professionals, including bankruptcy trustees and credit counselors.

For instance, if you still have a reasonable credit score, and some equity built up in your home, you can often refinance your mortgage ans use that money to pay off debt that has a higher interest rate, like credit card debt. This will in turn free up more cash flow each month.

In the current lending environment, with interest rates hovering at an all-time low, now may be an ideal time for you to refinance your mortgage and pay off some debt.

Interest rates are hovering at an all-time low in the current lending environment, so this may be the exact right time for you to pay off some debt by refinancing your mortgage.

Here are five simple steps you can utilize to help get a quick credit score boost:

1) The best way to increase your credit score is to pay down your credit cards. This type of debt, revolving credit, seems to have the most significant impact on your creidt scores, more so than lines of credit, car loans, and so on.

2) Try to limit the use of credit cards. Having a large balance, and then paying it off monthly can hurt your credit score. Any time there is a balance at the end of the month, it affects your credit score. Even if you pay the balance off the next month, credit formulas don’t that that into account.

3) Keep a check on your credit limits. Make sure everything is up to date. If a lender is slow to report monthly transactions, it can show up as unpaid, and may significantly impact how another lender might view your file. It is a formula that calculates your score and not a person. If it sees that you regularly charge a set amount each month on a specific card, it will assume that you’re maxing out your card each month. Some of these companies do not report your maximum limits.

The best bet is to pay your balances down or off before your statement periods close.

4) Old credit is good credit. Keep your older credit cards and use them. If you stop using them, the issuing institutions may stop updating your accounts.

If they do stop reporting, these older cards will lose their importance in the credit formula, and may not be as valuable. Even if you’ve had a card for a long time, use it periodically, and then pay it off.

5) Stay on top of your statements. Don’t let mistakes build up. You should always dispute any mistake or situation that may harm your credit score. If you have a bill that is incorrect, and the company won’t make it right, you should dispute this by making the credit bureau aware of the situation.

If you’re in arrears repeatedly on making your credit card payments, your situation may not be ideal for refinancing or boosting your credit score quickly. Depending on how bad your problem is, and the reason for the delinquencies, like job loss, divorce, sickness, etc., I can help you address these situations through a variety of means, or refer you to other professionals to help get your credit situation back on track

As always, if you have any questions about you credit situation or your mortgage in general, I’m here to help!

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