Published: January 22nd, 2015 • Last Updated: January 6th, 2021
Author: Ross Taylor on AskRoss.ca
Don’t Wait Until You’re Ready to Buy a House to Renovate Your Credit Scores
Because we are credit specialists as well as mortgage agents, at Ross Taylor & Associates we help many clients who are trying to improve their credit history. Some have gone through consumer proposals, debt settlements, or even personal bankruptcy. Not everyone. Some others hit hard times in the past, often because of job loss or marital break-up; and when that happened, scheduled payments were often missed.3 Steps to Rebuilding Your Credit:
- Close open wounds (like unpaid collections)
- Allow time to be your friend – the more time elapsed since a negative occurrence, the less impact it has on your score
- Build up your score through the responsible use of new and existing trade lines and loans
My Advice Could Apply To Anyone In Similar Circumstances:
- Ensure you have at least two clean credit facilities (not counting your cell phone and mortgage) – could be revolving credit or a loan or lease. If you only have one, get a second credit card as soon as possible – even if you have to put up a security deposit
- Make multiple payments towards your credit facilities each month. Don’t wait for the statement to arrive. Your card issuers will love this and may even increase your limits. Higher limits can mean higher credit scores
- Don’t do anything which might trigger a credit inquiry, unless you absolutely have to. (Good thing though is you can check your own credit as often as you want)
- Try to pay your balance in full each month, and ideally a few days BEFORE your next scheduled statement dates
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