Let’s face it more than 2/3 of Canadians have had credit issues at some point in time for all sorts of reasons. You may have recently lost your job, earning less than you used to, or perhaps your expenses have gone up as the result of a divorce or separation. Whatever the cause, the good news is that you can re-establish your credit.
There are some basic steps that you can take to start the repair process:
- The first thing to do is obtain a copy of your credit report from both bureaus. The two major credit reporting bureaus in Canada are Equifax and Transunion. Make sure that the information on your credit report is accurate. If any errors are found make sure that you dispute it with the specific reporting agency. There should be no negative information that is more than seven years old. If there is, have it removed.
- Make arrangements to pay off any unpaid bills that are outstanding. Keep in mind that the older the debt the easier it is to make settlement arrangements with creditors. In most cases you can settle these debts for less than 20 cents on the dollar. It’s important that once you’ve settled the bill that you have the creditor simultaneously remove the negative information and provide you with a receipt or letter of release.
- Pay down all high credit balances as quickly as possible. If you don’t have any credit left or your bureau is filled with only negative credit, then you should start working on creating new positive trade lines. A mix of a cash secured credit card and an installment loan can really help in repairing the damage and improving your credit score.
Remember your credit wasn’t ruined overnight but with a little effort and patience.
You’ll be able to turn things around. If you’re in need of a new vehicle and your credit is holding you back, contact us and we can help. Email: info@ontariodrivez.com or Phone: 905-956-4700
