Everyone knows that your credit must be in a reasonable state if you want to get a loan. Having a bad credit loan in Edmonton can actually block you from being financially able to afford the lifestyle, home, or car you want. Having good credit is important. If you have a bad credit loan in Edmonton, it’s not too late to correct your credit score and get it back on track.

If you want to begin mending the holes in your score, here are seven things that you can do in order to start improving your credit.

7 Things You Can Do To Improve Your Credit

1. Get Copies of Your Credit Report

You can get a copy of your credit report from a credit bureau. Getting copies of your report is a good thing because you can immediately see what your credit score is and just how bad the damage is. Knowing what your score is will allow you to come up with a good plan to get it back up.

2. Pay Off Past Due Balances

Past due balances can really affect your credit score. Just paying off one can set the balance of your credit a little more in your favour. The history of your payment makes up 35% of your credit, so it’s important to keep that percentage balanced. It’s especially important to catch credit card bills before they get shipped off to a debt collection agency.

3. Consult Credit Counselling Services

Credit counselling services are a great way to get your credit score back on track. Experts have plenty of experience in the field and will be able to offer you seasoned insight on what you need to do in order to fix your credit. If you want to improve your credit but need professional insight and guidance, credit counselling services can help.

4. Improve Your Credit Utilization

When you add new charges to your credit card, it affects the math and alters your credit score. This is because any new credit card purchases increase your credit utilization. Credit utilization is essentially a ratio that gets calculated based on your credit card’s balance and the credit card’s limit. Pay some of your card’s balance off and buy purchases in cash to have the ratio gets dropped in your favour.

5. Pay Your Debt

Paying off your debt improves your credit score. Even if it’s just one, saving up to pay off a debt can have a positive impact on your credit score! That’s because the debt you have contributes to 30% of your credit score. The lower your debt goes, the higher your credit score climbs, and the happier you’ll be.

6. Pay Bills On Time

Since so much of your credit score depends on your history of payment, start improving that history’s track record. Paying bills on time will contribute to a better score and less stress for you, too.

7. Check Before Closing A Credit Card

You might think closing a credit card would be good for your credit score. Check with credit counselling services to make sure before you close any cards, however – closing an account prematurely could actually bring your score down.

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