BY: lendmax Comments: 0

The Canadian economy is still strong, and today, people rely more on credit than ever. The economy is expected to remain strong, and there is currently a large demand for loans to help businesses and individuals purchase goods and services. This increased demand has led to an increase in debt for many people. At the same time, the number of Canadians with bad credit is on the rise. As a result, more Canadians are having trouble getting loans and credit cards approved. According to a recent survey by TransUnion, as many as 22% of Canadians have a bad credit score. This means that more than 10 million Canadians cannot get approved for a loan or credit card based on their credit history.

An excellent credit score is your key to lower rates and easy approval for credit cards and loans, hence the need to improve it. But, if your credit score has taken a hit, there are a number of steps to help improve your credit score quickly, starting today. With the right approach, you can see significant improvements in your credit score within 90 days. Here’s how.

  1. Inspect Your Credit Report and Score

As per the Federal Trade Commission, about 1 in 5 consumers have errors in their credit report that negatively impacts their credit score. That’s a big number and is why you should routinely request your free credit report annually and read it through for any errors. Errors on your report could include wrong personal information, inaccurate status, e.g late payments made on time, hard inquiries you did not authorize, and negative information that has expired.

By law, the two major credit bureaus (Equifax and TransUnion) are required to each provide you with one copy of your credit report per year (upon request). A company like Borrowell also provides it for free on a weekly or monthly basis, along with your credit score.

  • Pay your bills on time.

Set up automatic payments using your bank’s bill payment service. Another option is to sign up for e-mail alerts from your credit card company if you sometimes have trouble paying bills before the due date.

  • Don’t Max Out Your Credit Cards

Don’t go over your credit limit. If you have a credit card with a $5,000 limit, try not to go over that limit. Borrowing more than the authorized limit on a credit card can lower your credit score. Try to use less than 35% of your available credit. It’s better to have a higher credit limit and use less of it each month.

  • Too Much, Too Fast

We all want the best credit card offers out there. However, if you apply for too many credit cards at once, your credit score will decline. You’ll likely get declined for credit cards you otherwise would be approved for if you spaced out your applications.

  • Get a Secured Credit Card

A “secured” credit card requires you to put down a deposit with the bank that secures the amount of credit they are extending to you. For example, if your credit card has a limit of $2,000, you will be required to deposit $2,000 in a designated account.

Secured credit cards help you to build your credit score when there are limited options. You will still need to pay your balance on time and this is a good way to learn about how to use credit responsibly.

You can also raise your score by becoming an “authorized user” on someone else’s credit account. For example, if you know someone with an excellent credit history, they could add you to their credit card as an authorized user. They do not have to give you a credit card to use; however, their high credit score will impact yours positively.

  • Increase the length of your credit history

The longer you have a credit account open and in use, the better it is for your score. Your credit score may be lower if you have credit accounts that are relatively new. If you transfer an older account to a new account, the new account is considered new credit. Consider keeping an older account open even if you don’t need it. Use it from time to time to keep it active. Make sure there is no fee if the account is open but you don’t use it. Check your credit agreement to find out if

Related post

Leave A Comment

Book an appointment with Lendmax Capital MIC using Setmore