Improve Credit

Tips on how to improve your credit rating and score

What Information Is Contained In My Credit Report?

Information on your credit report in Canada falls into the following general categories:

  • Identifying Information - Your full legal name, address, and date of birth
  • Credit History (Trade Lines) - comprehensive history about your credit utilization
  • Public Records - Judgments, bankruptcy, consumer proposal
  • Inquiries - Are you applying for credit often?
  • "Other Information" - Bank account overdraft, Collection Activity

Read about the information the credit bureaus collect about you, how it is used and interpreted by your creditors when considering applications for credit, and how you can control and update incorrect information.

5 Simple Common Sense Ways to Improve Your Credit

5 steps to Repair Your Credit - Where to Start?

No matter what your credit situation may be, there are several steps that you can follow to improve your credit worthiness in the eyes of lenders, banks, or other financial institutions:

  1. Pay Yourself First!
    Saving Money! This is the most important place that you can start when trying to improve your credit. You need to make the decision that improving your credit is important enough that you will cut your spending by 5% to even 10% per paycheque. If you follow the simple rule of transferring (or arranging for your bank to do it automatically for you) a small percentage of all deposits that you make to the bank you will begin to accumulate funds to improve your credit.

Consumer Disclosure - Your FREE Credit Report in Canada

The Canadian consumer is responsible for the information contained in their credit report. This information is your complete financial history in the eyes of banks, lenders, and other financial and credit institutions.

As a consumer it is your right under the law to review your credit report and check the entries for accuracy.

There are may ways to obtain your credit report and often times we find that our clients are under the impression that they have to pay to obtain a copy of their credit report and the information it contains. We have news for you! The Government of Canada made a free credit report available to every consumer in Canada, in addition you can review your credit report from any or all 3 credit bureaus in Canada once per year at ABSOLUTELY NO COST to you.

Payday Loans - Pros and Cons

There are many different reasons why someone would consider a payday loan when they are in need of emergency funds for living or other unexpected expenses. Payday loans are generally considered 'high-risk' loans as they have a high percentage of clients defaulting on the payments for various reasons. The following outlines some of the main pros and cons of payday loans, when and how they should be used and how they can repair or damage your credit:

Pros of Payday Loans

Fast Access to Funds
The main advantage to using a Payday Loan is to access the funds from your paycheque before payday. They will allow you access to a portion of your pending paycheque amount once you have generally provided them a proof of income (by showing them previous paycheques that you have received.)
Provides a grace period to obtain better financing

How To Qualify For a Consolidation Loan

Consolidation loans are generally accepted as the most fundamental solution for high-interest debt and credit maintnance. Usually, these consolidation or "debt pay-out" loans are structured in a manner such that the normal overall monthly minimum payments are slightly reduced, depending on the term of the loan. In situations of high-interest balances and/or recently delinquent accounts, Canada Debt Settlements will always recommend to the client to apply for a consolidation loan prior to other options, where the expectation of an approval is reasonable:

  1. Sufficient income* in relation to overall debt (see Total-Debt-Servicing Ratio)
  2. Reasonable Credit Rating History (see Credit Rating System & Beacon Score)

Debt Consolidation - Will It Reduce My Monthly Payments?

Qualify for Consolidation loans in Canada - make your loan go further to pay down more debtsIn the right situation, a debt-consolidation loan could be the best way to control consumer debt interest levels and maintain or repair credit history.

But what exactly is a consolidation loan?

In its most basic form, a consolidation loan is one where a bank (or another lending institution) provides you with a loan specifically to pay-out other credit debt. Often, the debts being paid-out, or "consolidated", are usually high-interest credit balances, accounts in the arrears or both. The monthly minimum payments are also consolidated in one monthly payment.

Frequently Asked Questions

This is our Frequently Asked Questions Page:

  1. Do I have to walk into your office if I qualify?
    At Canada Debt Settlements, we deal with clients all across Canada via telephone, fax & e-mail. Physically visiting our office is an option of course, but not a necessity.
  1. Is Canada Debt Settlements licensed?
    Proudly licensed by the Ministry of Government and Consumer Services, we realize at Canada Debt Settlements that disclosing personal financial information with anyone in general is definitely not on the top of one's priority list. Simply put, most individuals would rather not discuss their financial hardship unless necessary. We understand it is a very emotional subject and want you to feel completely comfortable when approaching our services. Our clients' funds are fully protected and insured by our Trust Account (Similar to a lawyers) and provincial bonding to ensure that settlements, when approved, are processed efficiently.

Investing in your Future to advance your Credit Worthiness

Continuation of the 5 steps to Repair your credit

It's a common practice that especially banks will only lend money to those people that don't need it. You need to show your lender that you are responsible with money through showing excellent payment history on active accounts, and that you are continuing to save and invest in your own future. There are added advantages to using investments to improve your credit worthiness.

How to Obtain Credit once Declined

Return to Previous steps

5 Steps to Repair your Credit - Continued

Believe it or not - the next step to improving your credit is obtaining more, especially if the only history you've viewed on your credit report is not favorable. If your credit history is not too bad in terms of payment history this step may not apply to you.

Tips and Tricks for improving your credit score

Improving your credit score is something that can be done with a few simple steps.

First lets look at the biggest factors that impact your score:

Payment history
  • A clean record of on-time payments per your credit agreement will help boost your credit score.
  • Falling behind on your payments or soon to be falling behind? Contact us before it's too late!
Outstanding debt
  • If you have used over 50% of your available credit you may harm your credit score! If you are concerned about your credit score try to keep your balances under 30% of your available credit.
  • Learn about debt reduction options - we offer free consultation and could give you strategies to imrove your credit worthiness
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Another Successful Debt Settlement...

I must say that I always ‘do my research’ in every area of life as best as I can so that I make the right purchase the first time. Well, this was not an area I was even remotely able to make a definitive call on since my wife and I never had any previous debt issues.
I researched and met up with many different Debt Resolution/Debt Solvers and tried to work with making monthly lump payments but it wasn’t the correct solution and in the end failed for us. I started researching into solving our Debt problems all over again when I came upon the idea of Debt Settlement…that was the correct solution and something my wife and I should’ve done the year before. The problem was who could we trust to do it and who was the best person for the job. That was our newest problem.
I started making calls and looking up as much information as I could get on the Companies that did this and I was confident that Canada Debt Settlement were the tops in this area so I called and spoke to Boaz. I was actually somewhat shocked as he had answered my questions and explained the way it worked so well I had no more questions the next day. This was a relief as the time frame for us was very tight and to this day I am amazed that everything was settled going right down to the wire on our tight schedule and that Boaz still managed great savings for us in the process. It pulled us right out of debt and had we called Canada Debt Settlement the year before we would’ve saved even more and not carried that Debt burden unnecessarily for an extra year.
If you’re doing your research looking for who is the right one for the job, I can honestly tell you save your time and money and go with Canada Debt Settlements. I would be happy to talk to anyone that has any uncertainty as the expertise and hard work Boaz did for us was truthfully incredible.
S.B. of Mississauga
Received Dec 23, 2013 via email
Total Savings: $18,000+

Call now for your free no obligation consultation 1-877-475-3939