The 5 Easiest Ways To Build Credit As A Canadian - Refresh Financial

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The 5 Easiest Ways To Build Credit As A Canadian

Rebuild credit

I don’t know anyone who hasn’t had some credit trouble at one point or another. I myself have experienced credit trouble and needed to learn how to build my credit fast. It’s so easy to fall into - we’ve all been there. It can feel nearly impossible to dig yourself out of it, though, like there is no real way to improve my credit fast. There’s so much information available, so many different options to weigh. Where do you begin? Who do you trust? I feel you, trust me. Sometimes, it feels like the cards are stacked against you; like you need credit to build credit. It can feel absolutely futile, but I promise you, it’s not.

Today, we’re going to lay it out for you. I hope that you can walk away from this short post understanding that it’s not so scary, and that you can do this. In fact, with the right amount of determination, it’s actually pretty easy.

The key here is self-discipline. There are plenty of tools available to you if you can keep yourself on track. Don’t lose sight of the goal and don’t take on more than you know you can handle. If that’s you, if you’re this committed and you truly want to turn your credit around, here is a countdown of the top five ways to do it in Canada:

5. Check your credit report and credit score for anything that needs correcting. If you’re like most people who’ve found themselves struggling with credit issues, you’re probably terrified to look at your credit report. Do it anyway. You might be surprised. People tend to think things are worse than they are, and it isn’t until they lay their eyes on that report that they realize, “Hey, this isn’t so bad. I can do this!”. Look for mistakes on your credit report. These can be signs that someone has stolen your identity and abused your credit. These mistakes can also be disputes you had with previous creditors that you have since ironed out. Clear up any and all errors you might find on your credit report and then tackle the hard stuff: contacting those creditors you still owe and working out a way to pay them back. A lot of the time, just being communicative with your creditors can keep you in their good books. Begin to chip away at your debt as per your agreements with your creditors.

4. If you find you owe too much to be able to pay what you owe back quickly enough to keep your creditors happy, consider a consolidation loan. You’ll be able to pay off all of your creditors at once and get out of the higher interest forms of credit. A consolidation loan turns many payments with high interest into one payment with a more reasonable interest rate. You can lower your interest rate even further by putting up assets as collateral. This is a great way to avoid any more dips in your credit rating, providing you pay off your consolidation loan on schedule. Your regular and on-time payments will also help build up your credit score.

3. Apply for a secured card. A secured card is just like any other credit card, with just one difference: collateral. To qualify for a secured card, you’ll have to put some money down as security for the credit you will have access to. The security funds serve as a sort of safety net for the credit card company, should you fail to repay your debts. Just like a regular card though, if you make your payments on time and manage your credit well, it will have a positive effect on your credit rating. This also comes in super handy for booking travel or ordering things online. If you’ve had a bad credit score, you know very well how difficult paying for these sorts of things is.

2. Apply for a secured line of credit through your bank or credit union. Most banks and credit unions respond positively to longtime clients needing help in this way. All you need to do, is put the amount in credit you request aside in a savings account. This serves as the collateral for the line of credit. You then have access to the same amount in credit, and have to make payments on the amount you use. This is often available at a much lower interest rate than credit cards are, and works just as well at benefiting your credit score, if you stay on top of it. In the meantime, your security deposit gains its own interest while it sits untouched in a savings account.

1. Apply for a Refresh Financial secured savings loan. 97% of all applicants are approved. Yes that's right, 97%! As you make payments on your secured savings loan, your credit score skyrockets. Not only does a Refresh secured savings loan help rebuild your credit, but it also kickstarts your savings, as you access the loan amount at the end of the program. Yes, you can boost your credit score by saving. What will you save for? A trip? A home? A car? Keep adding to your savings and stay on top of your credit and you’ll get there!

There you have it! The top five ways Canadians can rebuild their credit. While all of these methods are effective, none of them will come without your own commitment, patience and determination. At Refresh Financial, we believe that no matter who you are, with the right tools and opportunities, anyone can cultivate these qualities in themselves. If I can learn how to improve my credit fast, you can too. We believe in you, Canada, so get on it! Rebuild your credit!

Are there any other methods I missed? Any tips or advice you can give those trying to rebuild their credit? Let us know in the comments!

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