Here at The Local Credit Experts we want to help you rebuild your credit, and any tools we see that can help we like to share with you. Here is a free printable for you to download and use. We did not create the printable but here is the link!
Whether you’re in business school or studying the arts, getting in the habit of paying your bills on time today can help you build a good credit rating for the future. Your credit history forms the basis of your credit score, a measure that reflects your current financial situation and your ability to repay a loan.
Follow these day-to-day practices to establish and maintain a good credit rating.
1. Pay your bills on time.
- This golden rule of a good credit history will also save you the expense of late-fees and other unnecessary charges. Online banking can help you stay organized.
2. Make regular payments.
- Paying at least the minimum payment requirement due on all credit will show other lenders that you are a responsible borrower.
3. Know what you owe.
- Be aware of the amount of all your debts and set a repayment timeline and schedule as soon as you start earning money after graduation.
4. Do not spend beyond your personal limit.
- Just because the credit limit is there doesn’t mean you have to use it.
5. Close or cancel any credit card accounts you don’t need.
- Having one credit card account makes it easier to keep track of bills.
6. Keep your account out of collections.
- Stay on top of bills, and don’t ignore calls or reminder letters. If missed payments on credit cause the lender to send the credit to a collection agency, it will stick with you on your credit history.
7. Don’t ignore debt issues.
- If you can’t make full payments or are feeling overwhelmed, talk to your creditors. Usually, you can make some kind of arrangement that doesn’t jeopardize your credit history.
8. Make sure your monthly statements are correct.
- Mistakes can happen, so be sure to review your monthly statements to quickly detect any errors or unauthorized use of your credit.
9. Learn more about your credit report and score.
- Find out more from the
What’s a credit history?
- In Canada, credit information is collected by two major credit-reporting agencies,
- . They record how you have used credit and whether you pay your loans and bills on time, as reported by your lenders.
Finding out what’s in your report is easy. You can obtain your credit report for free if you send a request by mail or fax, or pay a small fee to request a copy of your credit report and see your credit score online. It’s a good idea to check your report once a year to ensure that it’s accurate
Bad credit is a burden, but it needn’t be a permanent one. To help rebuild and reset your credit and become more attractive to lenders, try to follow some of these helpful guidelines.
For more information or to consult with one of our credit rebuilding experts, call us anytime at 1-888-879-1059.
Credit and Trust
Have you even broken someone’s trust and been able to build it back up over time? It’s difficult, and it can take a while, but it’s certainly possible. Credit at its core is essentially trust: does a lender trust that you’ll repay the balance of the loan at the time you agreed on. Of course it’s better not to break someone’s trust in the first place, but sometimes it’s easier said than done. What do you do now?
1. Identify why you have a credit problem
We don’t just mean what items you purchased that resulted in you being considered a lending liability. What are the daily habits or external forces that have caused you to seek out loans greater than you can afford? If you keep on doing what you’ve always done, you’ll keep on getting what you’ve always gotten.
2. Create a budget
To pay down your debt, gain some financial stability, and create a sustainable spending strategy, you’ll need a budget. Thankfully there are many helpful resources online to help you do just that. Creating a budget not only provides you with a plan for the coming weeks and months, it also helps you to identify unnecessary or frivolous purchases.
3. Pay down your debt
The less debt you have, the more attractive you’ll look to lenders. Catch up on late payments and pay down as much of your debts as you can. Start with the one with the highest interest rate, then once that is completely paid off, proceed in the same manner until all of your debts are either entirely reconciled, or else manageable.
4. Continue making sensible borrowing decisions
Avoid taking out credit that is not necessary. Car loans are appropriate because having a vehicle is often essential in earning an income. Buying jewellery from the shopping channel? Not so much.
Start rebuilding your credit by making your payments on time over a couple of years. Paying off a vehicle on time over a number of years helps lenders to regain faith in your borrowing status, and may ultimately lead to you being able to qualify for lower interest rates in the future.
5. Rebuild Your Credit
Depending on your region, the longest that a negative piece of information (evidence of late or missed payments, bankruptcies, defaults, etc.) can remain on your credit report is 6 to 7 years. Rebuilding your credit will take time, but life is long. You may also find the process deeply satisfying, as you are not only improving your credit standing and ability to borrow money, but are developing entrenched, healthy habits that will be fruitful across many other aspects of life.
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