How to Rebuild Credit in Canada After a Bad Credit Rating

Want to learn how to rebuild a credit report in Canada? Lenders want to see a good repayment history on your credit report. A “good” history means paying more than the minimum balance regularly. Banks typically want a credit score of at least 700 on both Equifax & Transunion for a loan. (Don’t know your score? Click here )

If you can’t get a loan at the moment it’s probably because they (the banks) want to see something different from your report in the future. This will show you how to accelerate your credit rating to a good standing.

Ideally Your Credit Report Should Show:
  • You have paid on time (with rare exceptions).
  • You have a lenders on your report that have given you loans & credit.
  • You have a history of paying your debts. (1-2 years at least)
  • That you’re not currently in a bankruptcy, consumer proposal, or credit counseling (aka Debt Management Program) If this is you but you’d still like to rebuild click here

So you might be thinking, “To build credit you need a loan or credit card?? How does that work?” Yes, a bit backwards I know, but hunting for a lender to rebuild your credit score is not as impossible as you might think.

Four Ideas to Rebuild Credit
  1. Consider using the unused equity in your home. For info click here
  2. Continue to pay more than the minimum balance on existing debt. If this is not possible click here
  3. A secured credit card. Basically a credit card with a deposit. For more info click here
  4. A Credit Rebuilding Program. Basically a forced savings program which improves your credit score monthly.  This is the fastest I’ve come across. Some people have recovered a 100 points or more by just sticking to it for a year. For more info click here

By continuing to reliably pay down your debts under any of these options will help you in the long run & rebuild your credit rating. Do not turn to payday loans for credit rebuilding history! Payday loans do not show up in your credit history until they are moved to the collections department (bad debt). Still Stuck? Click here

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