Your credit rating is like a report card. Having money problems, filing personal bankruptcy or making a consumer proposal will result in a bad mark on your credit report card. Therefore to rebuild your credit rating you have to get as many good marks as possible. The only way to get a good mark is to borrow money and pay it back within the time restrictions. The way to get a bank or credit card company to lend you money despite your poor credit rating is to:
Have a co-signer
Obtain a secure credit card
This is the same as a credit card, except it is backed up by the money in your savings account (if you don’t have a savings account, get one). The credit limit will be the same as the amount of money that secures the card. When you make your monthly payment for the card, this payment record will be sent to the credit bureaus each month. A solid history of no missed payments will greatly improve your credit score over the length of 12 months.
Here are some other ways that can help rebuild your credit rating and lead you to financial security sooner:
Seek advice from your banker. Speak to a banker and tell them you are working toward rebuilding your credit history. They can give you some solid advice and are an excellent source of information.
Pay every utility bill on time. This includes home telephone and cell phone bills, cable television bills, internet service bills, etc.
Pay your credit card balance in full. Do this immediately after receiving your statement. Try to keep your balance low, too. A small balance such as $10 is easy to pay, yet is one more step toward improving that credit score.
Stop at one credit card. You only need one, and paying a monthly balance in full at the end of each month is a whole lot easier when you have little debt.
If you are struggling with debt and need help, contact our office for a free initial consultation. We have offices throughout SW Ontario and are open late and on weekends to meet your needs.
