Tips for Credit Repair


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Tips for improving your credit score

If your credit score is not as high as you think it should be, make sure that the information in your credit report is correct. If it is correct, read your report carefully to find out which factors are most likely having a negative influence on your score, and then work to improve them.

Are you having trouble with your credit report? Maybe you have defaulted payments on a loan, or you have declared bankruptcy. Even in this worst case scenario there are tools you can use to manage your debt and improve your credit scores. Managing your credit and making payments on time is always the best course of action but below are a few other tips for paying down your debt and improving your credit rating that you may not know.

Credit repair tips from Financial Consumer Agency of Canada

Here are some tips, from the Financial Consumer Agency of Canada (FCAC), on how to improve your credit score:

  • Always pay your bills on time. Although the payment of your utility bills, such as phone, cable and electricity, is not recorded in your credit report, some cell phone companies may report late payments to the credit-reporting agencies, which could affect your score.
  • Try to pay your bills in full by the due date. If you aren't able to do this, pay at least the required minimum amount shown on your monthly credit card statement.
  • Try to pay your debts as quickly as possible.
  • Don't go over the credit limit on your credit card. Try to keep your balance well below the limit. The higher your balance, the more impact it has on your credit score.
  • Reduce the number of credit applications you make. If too many potential lenders ask about your credit in a short period of time, this may have a negative effect on your score. However, your score does not change when you ask for information about your own credit report.
  • Make sure you have a credit history. You may have a low score because you do not have a record of owing money and paying it back. You can build a credit history by using a credit card. See the next section to find out how.

To learn more about your credit file and credit score, view Understanding Your Credit Report and Credit Score.