A good credit score presents you in a positive light in front of your creditors and qualifies you for bank loans and the like.
Rebuilding your credit score after a tumultuous time can be quite mind-draining. You will need to exercise patience and understand that it is a time-consuming process—something that cannot happen overnight.
In order to safeguard yourself from future financial calamities, you need to make sure you recover from the trauma of recent debt.
So let go of the shame and guilt and roll up your sleeves to get your finances back on track. According to a survey by Equifax, the highest percentage of Canadians who have a credit score below 520 lie in the age group of 25 years and younger.
Let’s see how we can go about addressing the issue of rebuilding your credit:
A Credit Report Check Is Must
Assessing your financial position from time to time is pivotal to making a comeback in the financial world. Always keep a check on your credit report to know where you are lagging behind and what areas you need to target.
You could either be missing out on your late payments or have a high debt utilization ratio. For this purpose, free Annual credit reports are available online for your reference. You have no excuse to remain oblivious of the facts and figures.
There’s No Room for Missing Out On Your Payments Now
A financial crisis, at the very least, makes you realize your financial responsibilities and puts you on high alert.
You need to know that no discrepancies will be tolerated when it comes to paying off your financial liabilities. You need to be serious and strict about your budget. Stick to it religiously. Financial limits are a must now. Even a slight mistake can push you back into spiralling debt.
Timely pay your current bills. They considerably affect your credit score. Establishing an emergency fund might do wonders for your credit score, as unanticipated events can really burn a hole in your pocket.
A Credit Card That Rebuilds Your Credit Score
A secured credit card is made for the specific purpose of boosting your hurt credit score. This entails depositing a fixed amount of money, into a bank account which is taken as your credit limit. The strategy is charging amounts in instalments and then repaying your debts, putting a positive effect in your credit score.