Mortgage Blog
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8 Tips to Repair your Credit Score in Canada
November 7, 2019 | Posted by: Steve Bourne
You are interested in purchasing a home or condo, but soon realize that your bad credit may keep you a 'renter for life.' Sound familiar? A lot of us have been there.
The good news is that we can all take positive steps to repair our credit and no one should feel that they are destined to “rent for life”, unless of course, they wish to. Here are some proven tips designed to help individuals looking to repair their credit:
- Everyone’s situation is unique – the first step is to consult with a professional (mortgage broker, financial advisor) for advice tailored specifically to your situation.
- Start by reducing your debt – pay down any credit cards and loans.
- Pay your highest interest debt off first – usually credit cards.
- Make more than the minimum payment each month - if your cash flow is tight be sure to make the minimum payment – do not miss a payment and avoid late payments.
- Avoid high credit utilization – constantly maxing out all sources of credit has a negative impact on your credit score.
- Lenders like to see at least 2 trade lines (credit card, loan, secured or unsecured debt, lease or car payment) on your credit bureau with very low or declining monthly balances showing your responsible use of credit.
- Debt consolidation – work with a professional to review and restructure your current debt load into more manageable, lower interest payments.
- Live within your financial means – eliminate discretionary spending and stick to a reasonable budget.
Following these simple and straight-forward tips will enable you to gradually repair you credit and greatly improve your overall financial picture.
Call or email me today for a free consultation, and let me provide you some guidance and professional advice: stevebourne@gtamortgagebrokers.com, 647-407-5754
Thank you to Tyler Pope at Page & Percival Realty Services Inc for raising this important question on behalf of one of her clients. Contact her at 416-837-7797 or tyler.pageandpercival.com