3 Simple Steps to Credit Rebuilding and Credit Repair in Canada
If you’ve recently gone through a credit collection, consumer proposal or bankruptcy – don’t worry. First of all, you’re not alone – thousands of Canadians have been where you are and have made it through. But most importantly, know that your credit rebuilding and credit repair can happen in less time than you think. Your credit isn’t ‘dead’, but we do need to hook up the defibrillators here and give it a few major ZAPS.
For now it’s all about getting back on your feet as easily and in the least amount of time as possible.
Don’t delay – don’t procrastinate – because this will definitely cost you. Follow the 3 simple credit ZAPS below and within 2 – 3 quick years you’ll be back in the market – able to apply for a mortgage and being to receive all the benefits (seen here) of maintaining a great credit score. The time will fly by – I promise and you’ll be excited knowing you’re headed in the right direction.
ZAP 1: Get a credit card. As soon as you are released from your credit reorganization – it is imperative that you establish credit right away. My top choice for this is the Capital One Secured card, although any secured card will do. I recommend a $1000 minimum limit for the best results, however, $500 will begin to rebuild credit and repair credit as well. A secured card involves allowing Capital One to hold on to $1000 (or whatever amount) while you re-establish your credit. Your credit limit is the same as the money they hold on to. Avoid ‘pre-paid’ credit cards though – they will not establish a credit limit for you.
ZAP 2: Get a small card loan or RRSP Loan. Both of these types of loans are secured by an asset and are easier to get approved for. This can usually be done on reasonable terms after a year of establishing with your credit card. Be careful though – it’s not about getting back into debt. Ensure your loans are small (like $2000 maximum) and are only used for the purpose of establishing credit. An RRSP loan can be approved by most banks, and the benefit here is that you will get a nice tax refund as a result of the RRSP purchase. This can be used to help repay the loan. Ensure your loan payment is stretched out over as long as possible. Once you have held 2 forms of credit/ loans for 2 years, your score will be noticeably improved.
ZAP 3: Monitor Your progress. You can monitor your credit rebuilding or credit repair process by visiting the Equifax Canada website and subscribing. Checking your credit improvement on a monthly basis will help keep you motivated, and will also ensure that you are not approaching or exceeding your credit limits.
Call or connect with Altrua today for more information.