Time and again we have dealt with credit scores and how these affect your finances and business dealings most especially with lenders. Your credit standing is vital to your economic status because this serves as your benchmark in knowing how properly you manage your money and how savvy you are in settling your outstanding debts.
However, many unfortunate individuals – like us and you – fall into a debt trap that murders and ruins our chances of getting an opportunity to “set the record straight” and clear our records from bad credit circumstances.
If you can relate to this then worry not because we are here to help you fix – and not just patch – your negative credit standing to make your credit worthiness stand out again. You do not need Sherlock Holmes™ and Dr. Watson™ to investigate your “crime against credit reliability” but rather a team of verified and reputable credit score repair professionals to keep you out of financial misery once and for all.
Take a deep breath and relax, dear lads and lasses, for we shall now begin our short but meaningful journey towards freedom from your dire credit stature…
Credit Score Defined
We will begin our adventure by defining what credit score is and the components it has that greatly affect your “risk factor”:
Credit score is a customer’s creditworthiness that is measured by using a score range that runs between 300 and 850 points. The higher the score, range, the more credit worthy the customer is.
A customer’s credit standing is also influenced by his/her credit history that corresponds to a number of factors like number of credit cards open, repayment transactions, debt levels, and others.
In other words, a credit score is a reflection of who you are as a responsible debt manager and what you are as a conscientious person.
If you are having troubles figuring out what to do with your ballooning bad credits then seek professional help immediately so that you can be aided in best ways to improve credit status.
The sooner you do this, the better your chances for a speedy credit recovery.
Fix Your Credit Right Away
We will provide you with our 6 most common remedies to reinvigorate your unhealthy credit score and these are the following:
Human beings still do most of the work in inputting data on your credit report. Make sure that all information is correct and no missing or inaccurate information is ever reflected. Any error, minor or otherwise, – a missing comma, an erroneous insertion, an additional letter to your name, etc. – will have a tremendous impact on your credit mark.
- Get a hold of your credit report – a credit report is like your child’s school report card: failing to see this will almost guarantee no re-admittance next school year. The same holds true to your credit report: you have to review your credit data to know how good or bad you are performing in your overall credit standing.
Failing to do this will almost guarantee that no lender will extend to you any type of loan because you pose a risk to their business. You can contact your nearest credit bureau and request for a copy. (NOTE: some will give it for free while some will charge between $1.00 and $11.00.)
- Check for errors and dispute them immediately – man, in general, is susceptible to errors and so does your credit report, too. Forget about computers being accurate and fast in reproducing your credit data!
Dispute any errors as soon as possible to avoid repercussions on your end otherwise your lenders may opt to provide you with bad credit mortgage loans and this means higher interest rates and less-than-friendly terms in your loan agreement.
- Settle Past Due/Delinquent Accounts – this is obviously common sense talking to you! No matter how hard you try to “correct” your creditors/lenders regarding your credit record, you will not get away from your unsettled accounts.
These will haunt you until you do something at once. Many tried to outrun both lenders and credit agencies by fooling around with them but failed miserably – 99.99% of the time.
So, man up instead, face your outstanding dues in the eye, and settle them once and for all!
(NOTE 1: If you do not meet the 30-day deadline to settle any of your monthly obligations then a collection agency – normally in partnership with your lender – will take over in getting your debts settlement up to order.)
(NOTE 2: There are two options that your lender can exercise before deciding to use a collection agency: charge-off and pay-for-delete. Both are considered “point of no return” for you because both options will demand that you pay your dues – in whole – at once. You also risk suspension of your credit card – if you have one – as penalty for your erring on your monthly payments. They also carry a higher-than-normal interest rate also known as “service charge” only to soften up the blow.)
- Prioritize paying your high-interest accounts including new credit accounts (if there are any) – this is another beckoning from your common sense. The rule of thumb regarding this – which probably is the best – is settling FIRST your accounts that carry high-interest rates as well as any new credit accounts. The former is self-explanatory. The latter, on the other hand, requires further explanation: delaying payment for your new accounts can and will lead you to forget about them completely. This will only make things worse for you most especially if you are planning to apply for a mortgage loan in the future.
If you feel overwhelmed with your unsettled debts and appear at a loss on how to figure them out then look for trustworthy credit repair agencies or companies that fix your credit to help you bail out from them with much ease and confidence.
- Improve your credit utilization ratio – this simply means that you have to monitor properly your debts in relation to your overall or total credit available.
Both are in direct proportion to each other such that if the former is high then the latter will dictate – through the available balance – the ratio or score that you will receive. Lenders will then use this to grade you as either risky or credit worthy.
(NOTE: Most credit score specialists recommend having a CUR – credit utilization ratio – between 10% and 30% in order to maintain a positive credit score. If this value goes higher than 30% then you start impacting negatively your credit standing.)
- Pay all outstanding balances promptly – this one is self-explanatory.
Fixing your credit without using any credit repair agencies will save you money and time. If, however, your objective is more than settling your debts to free you from financial turmoil (i.e. you are planning to acquire a mortgage loan) then we recommend hiring a team of professional credit repair specialists to lend you a helping hand.
We outlined six of the best tips or strategies to aid you in fixing your credit quickly and properly. Avoid run-of-the-mill credit repair offers that promise you a “quick fix”: they are mere scams and fraudulent claims that do not amount to anything.
Our suggestion is for you to be financially mature once you gain control of your credit score and be prudent in your disposition of money to maintain your credit worthiness.
Credit is good but too much of it is bad and will eventually maim you in the end if you lose your will against it.
We are your mortgages and in credit score repair experts for 9 years running. Our headquarters is located in Canada and founded by Faizal Garasia, an authority in credit and mortgage matters.
Feel free to phone +1 647-373-9651 or send an email to [email protected] to learn more.
Best Strategies: Credit Repair Services and Bad Credit Fixes 2021
We have dealt with credit repair services and bad credit fixes for quite some time now that it would be repetitive of us to deal with them all over again.
However, we are enjoining you to take a step back and re-read our previous blog posts so that you will have a better understanding on what these two are all about and how they are related to our current blog.
For credit repair services, visit this page page and have a read-through so that you will have a firmer grasp on this topic.
Once you have finished digesting our suggested blog post above, proceed to this page and get a better perspective on bad credit and how this affects your overall financial well-being.
On the other hand, if you cannot fight the itch to dive into the details of our latest post then read on by all means.
Quick Overview 1: Credit Repair Service
Credit repair service is a type of service that helps consumers resolve and repair their credit score ratings and win disputed erroneous credit details that are resulted in high penalty fees.
There are a lot of credit repair companies to assist you in improving your credit score. You have to be careful, though, of who and what you are working with because there is a preponderance of fraudulent credit repair companies lurking out in the open and on the internet.
Be observant about their claims in clearing your negative credit score in a short span of time (i.e., one week guarantee credit score repair). There is a possibility that you will enter into a sham instead and lose all your hard-earned money instead to these criminals.
If you are in doubt then vouch these companies against the updated official listing at Better Business Bureau Canada or check out other Canada government-recognized agencies that store and track reviews regarding reputable credit repair services.
Quick Overview 2: Bad Credit Fix
A low credit score equates to high-interest rates. Having a poor credit rating constitutes inability to repay your dues on time and fund mismanagement. This will adversely affect almost all of your financial dealings – from securing a personal loan to landing your dream job.
You may wonder, “Fishing for my dream job is compromised because of bad credit?” The answer is a resounding, “YES! It will!”
The reason is too evident: companies –big or small –are using your credit scores to render decisions surrounding you as a responsible individual, your financial stability, your economic status, and most importantly your credit wellness.
If you are the type of person who shows financial responsibility and demonstrates knowledge on how to fix bad credit without compromising your self-worth then companies will have confidence in you and will hire you unquestionably.
If, on the other hand, you are the type of person who exudes poor financial decisions and always defaults on monthly payments then your chances of landing a decent job is slim.
Companies usually frown down on applicants whose financial records are irregular, insecure, and incomprehensible because they do not want to be involved with a person that could damage their reputation.
Strategies to Fix Bad Credit
Fixing your bad credit is not as hard as you think. You only need to follow the right procedures, have the right resources, and be patient. Raising your credit score does not happen overnight since it requires time and effort; hence, our suggestion is to start right away with a clear objective and 100% focus to get your credit score up as quickly as you possibly can and then wait for the results to surface.
We sorted these strategies to help you fix your credit and repair your credit standing with the least of effort:
- Get yourself a credit report
You are entitled to get a national free credit report every 12 months from each of the three major credit reporting agencies; namely, Equifax, Experian, and TransUnion .
- Find any errors and dispute them
Review your credit report history, your personal information on your credit card, your payment history, your outstanding balances, and your recent and past purchases.
Check every detail in your credit record and dispute any irregularities you find as soon as possible. File a report with your creditor if you encounter even a minute error in your account.
Never leave anything to fate or lack of initiative (on your part) or want in customer concern (creditor’s part).
- Review and improve your payment history
Your payment history comprises 35 percent of your credit score. This will give a negative impact on your credit score if you always make late payments.
Your mobile bills can also help in improving your credit score if you list it in your credit report.
Always pay your bills on time because this is your key to better credit reputation and to repair your credit score for good.
- Keep credit utilization at below 30 percent only
Credit utilization ratio is the amount of credit that you are currently using divided by the total amount of credit you have. Keeping it below 30 percent makes your credit score improve and fixes your credit profile.
- Stay away from hard inquiries
Hard inquiries happen when lenders start checking on you and on your credit. This is considered part of your lenders’ protocol and is commonly known as credit investigation.
What lenders do is they will check if (a) you are a voracious borrower from other sources (i.e., lending institutions, third party creditors, etc.), (b) you always or never default on your monthly payments, (c) you own other loans, and (d) your bank account has enough funds to shoulder your financial obligations.
The results from their scrutiny will appear on your credit report and, depending on their established findings, will either make or break your credit score.
Our suggestions: keep away from too many creditors, strengthen your financial discipline, and exercise prudence. Do this to build (or re-build) your credit reputation and re-instill creditor confidence.
Good credit will help you get an easy life and win financial freedom. Following our outlined strategies will turn around your dire credit standing and make it face forward with confidence to show to your creditors.
Spending lavishly is devilish but managing finances wisely is prosperity made in heaven.
Creditor trust can only be garnered in earnest so you have to prove yourself to be financially worthy at all times.
Lastly, avoid the temptation of having too many creditors in your pocket. Instead, seek advice from a reputable credit professional to guide you properly in the right direction towards the use of money.
We are you specialists in mortgages and in credit score repair for 9 years running. Our office is located in Canada and is founded by Faizal Garasia, an expert in credit and mortgage matters.
Feel free to phone +1 647-373-9651 or send an email to [email protected] to learn more.
How Does Payment History Affect Your Credit Score?
Your credit score tells more about you as a person than what you actually think. A bad credit reputation stains your credibility not only as a creditor but also as an individual.
Your negative credit standing can destroy you, your dreams, and your aspirations and leave you desperately fighting for monetary and economic salvation.
Many borrowers have fallen into their own unintentional death traps by having too much money at their disposal but having too little financial acumen to properly manage their expenses.
Living thriftily is not their greatest strength and eventually, this weakness stalks them and hunts them down like bloodhounds sniffing out a criminal in a dense forest.
Our blog today will explore how your credit score is affected by your payment history. We will also provide tips on how you can become a wiser borrower and a more intelligent financial manager so that your liquid assets will remain intact and well-attended for years to come.
Let’s get the ball rolling! Read on…
Payment History Defined
Payment history has nothing to do with national and international events, political upheavals, or even the order of things as society would deem it. It is almost certain that all of the mentioned instances have, to a certain degree, finances playing a major role in them.
Our blog, however, has no connection with any of the mentioned circumstances. Instead, it has something to do with you – that is, your financial records regarding timely payments (i.e. credit cards, loans, insurance, etc.) and past due payments (i.e. overdue payments, accumulated accounts for collection, unsettled medical bills, etc.).
We are going to explore ways to “re-write” your payment history and improve your credit score. Our blog will likewise show you great tips to properly commit yourself into fixing credit problems properly so that your financial credibility will stand out.
How to Improve Your Credit Score
We will not beat around the bush so here are our great tips to improve your credit score. Go through them and follow each of their advice to remedy your ailing payment history.
a. Your accounts must be in auto-pay – make sure your future bills settlements are
set to auto-pay. This is most helpful to people
who are forgetful or are unable to pay on their
due date because they cannot personally attend
b. Check with your creditors – make sure that you and your creditors are in agreement on
how you will pay them back. Non-reconciled credits will not
appear good in your credit report; hence, your credit score
will be affected as well as your payment history.
c. Settle credit demand letters ASAP – creditors eventually send out demand letters to delinquent
borrowers urging them to pay immediately. It is imperative
to settle these letters of demand since non-payment
will result in a negative mark in your credit history and score.
d. Settle late payments within the 30-day grace period – late payments are normal; however, if
this ends up cluttering your payment
records then you will have a hard time
fixing them. Not only do they damage
your character but also incur interests
making them more difficult to address.
This will also affect your financial credibility since personal loans with bad credit
will reflect how irresponsible you are with
your money and to your creditors.
Brief Overview on your Calculated Credit Score
Your credit score is unlike any score that only require a series of accumulating numbers such that the competitor or party who rakes in the highest mark wins.
Credit scores are computed based on three elements; namely, interest, principal, and time.
We are going to delve into this right now:
a. Payment history (35%) – simply put: your payment history details your timely payments.
Unfortunately, both your late payments and accrued accounts
for collection are computed as well. This comprises 35% of your
overall credit score.
b. Credit utilization ratio (30%) – this comprises your available credit in current use. The higher
your ratio, the better your credit score. This comprises 30%
of your total credit rating.
c. Length of time to establish credit (15%) – this pertains to the number of years your credit
card account is in use. The more aged your card
is, the higher your credit ranking. This comprises
15% of your credit score.
d. Unadulterated credit accounts and inquiries (10%) – this pertains to lending institutions re-
questing or pulling a copy of your credit
report. Luckily, this has no effect on your
credit score. This comprises 10% of your
total credit mark.
e. Having mixed credit accounts (10%) – this pertains to you having multiple accounts open
or active at the same time (i.e. credit cards, multi-
purpose loans, credit lines, etc.). This tells creditors
that you are a diversified person in terms of your
finances – thus giving you a high score – and
increasing your credit score for getting a mortgage.
Credit score and payment history go hand-in-hand. Credit scores are affected by your payment history because your timely payments tell your credit score how responsible you are in settling your obligations.
There are tips we provided to help you understand what credit scores are and their relevance to your payment history. We also provided you with a bird’ eye view of how your credit score is calculated based on a number of factors that we enumerated in the latter part of this blog.
Remember that your actions and decisions regarding your money affect your plans in the future. If you are gunning for a mortgage loan then you have to iron out the kinks in your payment history and increase your credit score in order for you to proceed with your loan application without delay.
We are your best rebuild credit score agency in and around Canada. Our team of dedicated credit professionals led by our equally dedicated founder, Faizal Garasia, will assist in reforming your credit score in no time.
Contact us today at (647) 373-9651 or send an email to [email protected] for more information.
Improve Your Credit Score FAST in 6 Steps
Whether you like it or not, your credit score tells everything. It tells whether you are approved for a credit card or for a mortgage you have applied for. Interest rates are also affected on this matter: the higher your credit score, the better interest rates you receive.
A bad credit score is like a sore thumb that you cannot hide. It will cause you pain, make you feel uncomfortable, and require immediate relief.
This will affect your financial stature badly and prevent you from getting new lines of credit or securing the mortgage that you need most.
Our blog will provide you with instant economic wellness from your debilitating credit worries so that you can carry on with your business.
Our tips to improve your credit score do not require rocket science to understand but rather keen common sense and an open mind to value their worth.
Credit Score Defined
A credit score is a number that serves as an individual’s creditworthiness. Credit Unions and other lending companies measure several factors to determine the borrower’s capability to manage debt.
These include – but are not limited to – payment history, credit utilization ratio, length of credit history, types of credit, and new credit, to name a few.
The acceptable credit mark ranges from 350 to 850 points depending on the Credit Unions. The higher score, the better the chances of gaining a loan.
Your credit score contains no magic formula that will automatically improve your rating in a minute. However, by doing these easy tips, your credit standing will improve in a short period of time.
Read ahead and take note of our 6 strategies to quickly upscale your credit score.
6 Steps to Scale-Up Your Credit Score in a Jiffy
- Procure a copy of your free credit report
• You can get a national free credit report from all major credit bureaus. This free yearly credit report is available through the website AnnualCreditReport.com or via their hot-line at 1-877-322-8228.
- Review your credit report
• Once you get your credit report, check it thoroughly for erroneous entries and dispute all of the negative items in your credit advice. Look for inaccurate data such as name, address, and other personal information and report any discrepancies immediately. You also need to look at your payment history, credit limit, and outstanding balance.
- Dispute your negative data and erroneous accounts
• This is related to number 2. Removing your bad credit history will help your credit score improve. We suggest writing a dispute letter to the credit bureau to ensure that they look into this at once and make sure that you also have a copy of the correspondence for future reference.. You have to do this because credit reporting agencies are mandated by the law to remove any disputable information that cannot be confirmed within 30 calendar days.
- Pay your bills on time
• If you want to improve your credit score fast then paying your bills on time is the best way to improve credit score. Payment history has the biggest impact on your credit score rating and gaining a 35% payment ratio presents itself as a backlash to your credit history. We recommend avoiding late payments at all costs to improve your bad credit quickly.
(NOTE: Payment ratio is the percentage derived from current outstanding balance and from the number of payments made by the borrower.)
- Keep your credit utilization low
• A credit utilization ratio is the amount of money that you are currently using divided by the amount of your credit limit. The credit experts say that you should only use at least 30 percent of your credit limit to maintain a good credit score. This is also one of the effective ways to better your credit and reestablish credit reputation with your creditors/lenders.
- Keep your old accounts open
• If your bank does not charge you for an annual fee then rejoice and do not close your old accounts. The age of credit history in your old account also has an impact on your credit score.
(NOTE: The length of credit history comprises 15% of your overall credit score.)
How is Your Credit Score Assessed?
Your credit score is determined using scoring models that are gathered by the information on your credit report. This is generated by the three main credit bureaus; namely, Equifax, Experian, and TransUnion, respectively.
The table below show the factors involved in calculating your credit score:
• Payment history (35%)
• Amount due (30%)
• Length of credit history (15%)
• New credit (10%)
• Type of credit used (10%)
Improving your credit score takes time and there are many ways to improve it depending on your situation (i.e. financial capability, employment, credit standing, etc.).
The best thing you can do to resuscitate your weak credit rating for now is to follow your set payment schedule and maintain your monetary discipline all throughout your credit repair period and beyond.
Follow the tips we stated above to achieve your target credit score and avoid problems in getting new credit lines, acquiring better mortgage contracts, and in winning best interest rates.
Feel free to phone +1 647-373-9651 or send email to [email protected] to learn more.
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