Canadians find themselves with poor credit for all kinds of reasons. Some of them not their own. We are frequently helping Ontarians improve credit score in Ohsweken and prepare for an auto loan and we could do the same to you.
With that in mind, we have put together this 4 step strategy to help begin rebuilding credit. It’s simple, straightforward and can begin improving your credit score. What’s not to like?
Step 1 – Check your credit report
Most strategies for rebuilding credit require you to know where you are. That way, you know how much work you need to do and roughly how long it will take. Poor credit to good credit typically takes around 18-24 months depending on the score.
But we can begin that process right away.
Checking your credit report will tell you your credit score. It also provides the opportunity for you to check for errors and have them corrected. This is a quick win and something that could add a few points to your credit score relatively quickly.
Step 2 – Get access to more credit
Sounds counterintuitive right? There is method in our madness. If you have credit cards and you’re making payments, request an increase in your credit limit. Just don’t use it.
If you don’t have any credit cards, get a couple and begin using them for daily expenses. Make sure to pay them off in full each month to avoid interest.
The idea here is to increase the amount of credit you have access to. That will partly lower your credit utilization ratio, the amount of credit available that you’re using. This can positively impact your credit score.
Secondly, by using your credit cards and making payments each month you’re creating more positive payment history. Again, to improve credit score in Ohsweken.
Step 3 – Set up automatic payments
Missing payments can seriously impact your credit score. That’s where automatic payments come in. Set them up for every outgoing you have and, if you have the option, have the payment date for the day after you get paid.
That way, you have the money in your account to make payments before it gets spent.
Step 4- Set up automatic savings
If you have money left over each month, put some aside for savings. Part of the reason people get into debt is because they need to borrow for emergencies or use credit cards to pay for them.
Having savings means you have a safety net to handle such emergencies without putting yourself further into debt.
It also means you can make lump sum payments on credit cards or other debts when you have sufficient savings.
These 4 simple steps will set you on the road to improve credit score in Ohsweken. It isn’t the whole story of course but it’s a start and it’s something anyone can do with minimal effort.
Then, when you’re ready for your auto loan, you can depend on our team of Ohsweken auto loan experts to get you a great deal!
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!