Debt Help And Credit Repair
Strategies

In today’s Fast-paced world, very few people wait to save their money to buy things.  Instead, they purchase with credit because it’s easy, convenient and faster than saving up cash for it. 

The fact is credit, like interest, can make or break your financial future.  Lenders, landlords, employers, insurers and utility companies use your credit history to assess your trustworthiness.

Can they trust you with their money?  Do you have a history of honoring your debts?

Will you pay your rent on time each month? Are you often late with your monthly debt payments?

Should they hire you or hire someone else?  Employers may think twice before hiring you If your credit history shows you’re not handling your own affairs responsibly.  That’s especially true if the position that you’re applying for gives you access to cash, assets, a company credit card, or confidential information.

It’s time that you ask yourself: “Is my credit working for me or against me?”

Can you imagine being told you can’t work or live somewhere because of your credit history?  It can happen.

Because credit is such an important part of your financial health you need to take control of it.  This means you need to know your credit score and the factors affecting it -- and more importantly, ways to increase your score.

Understanding Basic Credit Scoring and How to Improve It

We’ve listed below the 7 basic factors that influence our credit score and ways to improve it:

1.  Do you pay your bills on time? Automate your payments to your creditors to ensure on-time payments.

2.  How much of your available credit do you use, what are the amounts owed compared to the available credit? Keep balances owed under 30% of the available credit. 

If you’re buried under a lot of debt and have difficulties paying them off, then apply the strategies described in the debt elimination section.  You can also request help by calling our toll-free number 1-866-456-1348 or filling out the form to the right of this article.  We’ll connect you with an award-winning debt professional team that specializes in helping individuals like you become debt free while improving their credit.

3.  What’s your debt/income ratio?  The debt/income ratio is the percentage of your income that goes toward paying off debts.  You can calculate this ratio by dividing your monthly minimum debt payments (excluding mortgage) by your monthly take-home income.  If your debt payments absorb:

• Less than 20% of your income, you’re doing well
• between 20% to 35%, consider reducing your overall debt
• More than 35% consider credit counseling or some type of aggressive debt-reduction strategy.

If your debt ratio is more than 35%, then call our toll-free number: 1-866-456-1348, or fill out the form to the right of this article, and we’ll connect you with an award-winning debt professional team that has developed ways to speed up the repayment of debts using your current budget and without harming your credit.

4. What’s the length of your credit history?  How long have you had your credit accounts? Don't close credit accounts because you do not use them.  Keep them open to increase the length of your credit history.

5. What type of credit do you have?  A healthy credit profile has a balanced mix of credit accounts and loans, such as bank loans, credit cards, phone bill, utility bills, etc. Make sure you pay them all on time.

6. How many recent inquiries are there? When a lender or business checks your credit, it causes a “hard inquiry” to your credit file.  Even if you’re just comparison-shopping for the best rate, too many inquiries can be viewed as a desperate bid to obtain credit to get out of financial trouble.

2 methods to avoid this problem:  It’s understandable that you want to shop around.  So here are two ways  to avoid multiple credit inquiries:

Method #1:  Request your own credit report from a main credit bureau:  Click here for Equifax.  It doesn’t count as a hard inquiry when you’re the one requesting your own credit history.  Then go to your lenders and ask them for a quote based on the credit report you have at hand.

You can now shop multiple lenders, car dealers, etc., without incurring multiple hard inquiries.  Only the lender that you’ve chosen to do business with will eventually have to get your credit report directly from the credit bureaus, which will count as one hard enquiry.

NOTE: Not all lenders will accept giving you a quote this way, but some will.

Method #2:  Use brokers.  A mortgage broker for example knows the lending market better than you and will know which lender will provide you with the best terms.  A mortgage broker will incur one hard inquiry on your credit report but will shop dozens of lenders. 

To find a mortgage broker, go to our sister website at:  http://www.mortgageshoppercanada.ca .

7. How new are your credit accounts?  Approximately 10% of your score is from new credit.  Opening new accounts lowers your average account age.  Too many new accounts will lower your score.

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Further Action to Correct and Protect Your Credit:

1. Make sure there are no mistakes in your credit report.  This happens more often than you think. Equifax allows you to dispute errors in your credit report.

1.  Request your Equifax credit report

2.  If errors are found, submit a dispute at Equifax

2. Tell your story.  If you fall behind on paying a bill because of illness, unemployment, or family issues, write a short explanation to the credit reporting agencies. They will add it to your credit report. Also, call your creditor to explain the circumstances and, if possible, work out a payment schedule you can meet.

3. Shred your documents. Be sure to destroy any piece of paper with Social Insurance or credit card numbers. Thieves often go through garbage retrieving people's identification so they can use this information to commit fraud.

4. Don't give information away. Never include your Social Insurance Number on checks or other identification documents. Be extremely cautious how you use any personal information that may be a gateway to your personal identity. If required to provide this information, always ask if there is another option.

5. Be alert against identity theft.  Identity theft in Canada costs consumers, banks, retailers and other businesses 2.5 billion a year and growing.  Criminals can find ways to get credit cards and loans using your name and destroy the credit you’ve built for yourself.   Each credit bureau provides a monitoring and warning system that reports potential fraudulent activities in your credit file.

Their warning system can help you get the early jump on would-be thieves before damage is done to your finances, your credit and your name.

Click here to subscribe to the Equifax identity Credit Watch

What if you filed for bankruptcy?

You simply need to re-establish your credit.  While your bankruptcy will affect your credit report for years to come, you can take action and add positive points to your credit report that will re-establish your credit and improve your credit score.

After being discharged from bankruptcy, consider applying for a “secured credit card”.  That’s a credit card backed-up or secured by funds you have deposited with the financial institution.  The card looks like a credit card, and acts like a credit card, but will have a limit depending on the amount of money that secures the card.

Make the payments on time each month and you could re-establish your credit in 12 months or even less.

What if you never had credit?

You simply need to establish credit.  Here are 2 easy ways to do so:

1. Ask someone who has good credit to co-sign for a credit card in your name:  Financial institutions are looking for a reason to give you a loan, a credit card, a line of credit, etc.  That’s how they make money.  But they want some assurance that you’ll pay them back.  Your co-signer is their assurance.

Be aware that any default of credit on your part affects the credit of the co-signer.

2. Get a secured credit card: As mentioned in the bankruptcy section of this article, a secured credit card is backed-up or secured by funds you have deposited with the financial institution.  The card looks like a credit card, and acts like a credit card, but will have a limit depending on the amount of money that secures the card.

By applying the steps laid out in this article you’ll build yourself a stellar credit history giving you the freedom to access other people’s money when you need it.

To get started, fill out the form to the right of this article or call the toll-free number:

To your prosperous future

Sheriff Guirguis
Co-Founder
PayItDownFast.com

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