You have credit problems?
It can happen to each of us to be the victim of a job loss, a divorce or illness. And as a misfortune never comes alone, this type of unexpected often causes financial difficulties.
Also, it is possible that you have to remake your credit one day. So, I suggest 10 tips to rebuild your credit quickly!
1. Have a stable job for good credit
This may sound quite simplistic as a suggestion but changing jobs too often will irreparably harm you when it comes time to apply. Indeed, a potential lender may think that if you change too often job means you are unstable so unreliable or even untrained and easily dismissable. This inevitably places you in a fragile situation in the event that you have to repay any loan.
2. Stay in the same place for a long time
Moving constantly may like changing jobs often denote a form of instability. When you apply for a loan, you are usually asked to indicate your addresses for the last 5 years. If you are a tenant, this can scare a prospective lender who will think that you move frequently because you do not pay your rent. Stay in the same place for a long time will allow your lender to find that you are able to make regular monthly payments.
3. Pay more than the minimum on your credit card
If you have a credit card, pay more than the required monthly minimum to demonstrate to your lender that you have a financial leeway.
4. Keep money in your bank account
Have your salary paid by direct deposit to demonstrate to your financial institution that you have a regular income and make sure you keep a certain amount in your account. Having savings shows that you are able to meet your obligations.
5. Apply for an RRSP loan to rebuild your credit
Obtaining an RRSP is easier than getting a regular loan because the money is used to get an asset that can be taken as collateral by your financial institution. This is a great way to redo your credit more easily.
6. Ask for a small loan
Ask your financial institution to lend you a small amount that you can repay in a short time, say 12 months. Deposit the amount of the loan as collateral to demonstrate to your financial institution that you are able to make regular payments.
7. Try not to exceed your credit limit
Avoid overburdening your credit cards or lines of credit to prove to a prospective lender that you are able to mitigate your obligations without having to resort to instant credit. For getting out of debt is not easy, especially if the debts are very numerous.
8. Find a bond to reinstate your credit
If you are lucky enough to have relatives or friends who are more comfortable than you, ask them to endorse your loan to give you the chance to prove yourself. On the other hand, make sure to make your payments because in case of default, this obligation will belong to your endorser and this may also taint his credit file.
9. Check your credit report
Ask for a copy of your credit report at one of the two credit agencies in the market Have the mistakes found there. Have the debts already paid off or rectify the amounts of the loans if those are incorrect.
10. Mortgage your property
It is possible even when being owner to experience certain difficulties. You can still borrow money by securing the loan obtained through a mortgage on your property. Make sure however to make your payments regularly in order to regain a good financial health.