Everyone’s made mistakes in their past but those mistakes shouldn’t have to haunt you for the rest of your life. Whether you want to leverage your credit to buy a new or used car or a home, you’ll need to improve your credit score. There are a lot of ways to begin rebuilding your credit and you should investigate all your options to ensure the security of your financial future.
1. Clean up errors on your credit report
It’s a good idea to get copies of your credit report and report any errors to them. Ensure they’re correct and if they are, double check your credit accounts and ensure your payments are being reported correctly as well.
If there are errors, take steps to file the disputes for errors or traces of identity fraud. By cleaning up this information, it may help improve your credit score.
2. Take on a reasonable amount of debt
You can get a credit card with a department store, though it is a risk as the interest rate is generally very high and the payments might be quite variable. Alternatively, a used car loan is a great type of debt to take on – it has fixed, regular payments that you can budget for – you can even calculate your car loan online. It is also is flexible enough to allow you to make additional payments completely unpenalized.
Making regular payments may improve your credit score, as does making additional payments to pay off your loan early. Also, if you go to an institution that guarantees approvals for Calgary borrowers, it also makes the experience much less stressful (which is definitely a good thing!)
3. Build up your savings
It is a good idea to always have an emergency fund to access in case you need to address some sudden life change. A rainy-day fund will also ensure that you’ll still be able to pay your creditors on time (which is key to repairing your credit) while still handling whatever might come up. Consider using a high-interest savings account for the emergency fund, so it has a chance to grow as well.
There are a LOT of credit repair scams out there as well as a lot of unscrupulous organizations that would take advantage of you – avoid those. NEVER pay high fees up front to any credit counselling service – that is generally a huge warning sign.
Ultimately, the ability to repair your credit is in your hands. Fix errors on your credit reports, ensure your credit payments are made on time and leverage car loans (some of which are guaranteed for approval) wisely. Eventually you’ll clean up your credit over time.
If you are looking to buy a used car in and need a used car loan in Calgary, consider FinanceToday – with guaranteed approvals it’s a great step to improving your bad credit.