Debt Restructuring and Credit Debt Relief

Your credit report and credit scores are like your personal financial report card. This is what most financial institutions will look at before deciding to lend you money – if you have no credit history or a poor history, it could be more difficult for you to get a credit card, loan or mortgage. On the flip side, if you have a good credit history, you may be able to get a lower interest rate on loans, saving you money over time.

What impacts my credit score the most?

Simply put, your payment history, credit checks, and types of credit impact your credit score most. Our team of Licensed Insolvency Trustees share tips on how to improve your overall credit score.
What are some ways to improve my payment history?

Here are nine easy ways:

1. Always make your payments on time.
2. Always make at least the minimum payment if you cannot pay the total amount you owe.
3. Contact the lender right away if you will have trouble making a payment.
4. Don’t skip a payment even if a bill is in dispute.
5. Do not go over your credit limit! (Borrowing more than the authorized limit on a credit card can lower your credit score)
6. Use less than 25% of your available credit limit. (If you use most of your available credit, lenders see you as a greater risk – even if you pay your balance in full by the due date)
7. The longer you have a credit account open and in use, the better it is for your score. If you transfer an older account to a new account, the new account is considered a new credit. (Your credit score may be lower if you have relatively new credit accounts.)
8. Consider keeping an older account open even if you don’t need it and use it from time to time to keep it active. (Make sure there is no fee if the account is open but not used)
9. Be cautious of how many credit checks are on your credit report. If there are too many, lenders may think you are living beyond your means. (It is not unexpected that you will apply for credit from time to time. When lenders ask a credit bureau for your credit report, it is recorded as an inquiry – inquiries are also known as credit checks.)

How to control the number of credit checks on my credit report

You can control the number of credit checks on your credit report by doing the following:

1. Limit the number of times you apply for credit.
2. Get quotes from different lenders within two weeks when shopping around for a car or a mortgage – your inquiries will be combined and treated as a single inquiry for your credit score.
3. Apply for credit only when you really need it.

How to create a variety of credit on your credit report?

A mix of credit products may improve your credit score. Make sure you can pay back any money you borrow. Otherwise, you could hurt your score by taking on too much debt.

Types of credit include:

• A credit card
• A car loan
• A line of credit

Your score may be lower if you only have one type of credit product, such as a credit card.

To learn more about credit debt relief in Vancouver and Surrey, make an appointment with us today.