Credit Rating Issues - How to fix them?
In my last blog I discussed your Credit Bureau and the Beacon Score that is assigned to you based on your credit worthiness. You may or may not know what your score is but if you are having any of the following issues then you might have a low score:
Trouble making the minimum payments on your credit cards
- Not sure how much you owe
- Taking cash advances for living expenses
- Never seem to be out of debt
- Juggling balances/payments between credit cards
Again, I would recommend that you obtain your credit bureau (see previous blog) so that you can start to address any issues that may be showing up. If you determine that there are some problems, here are some tips to help you recover and get back on the right track:
Cut up or put away all of your credit cards
- If you have a number of large credit card balances consider getting a consumer loan or an equity take out mortgage to pay them out. The interest you save will be well worth it.
- If you aren't able to make your payments on time, contact your creditors and let them know that you are having difficulty. Most companies will work with you make alternate arrangements.
- Re-evaluate your spending habits and lifestyle
- If you can't sort things out for yourself, contact a not-for-profit credit counselling centre. A counsellor will review your situation and give you options to develop an action plan.
- Review how things got off track and then make a plan to prevent it from happening again
The biggest tip of all here is don't ignore the situation......the sooner you deal with it the sooner your credit rating will be fixed.
Please feel free to call me to discuss your situation or any credit related questions.
Jerry Sims is a mortgage broker with Ambro & Associates Mortgage Consultants Ltd. with over 20 years of lending, banking and financial planning experience. A highly satisfied and loyal client base can attest to Jerry's knowledgeable, creative and caring service that rises above and beyond expectations. Jerry has worked at several financial institutions in the capacity of loans officer, branch manager and credit manager.
Please feel free to ask John for an endorsement if you would like to know more about my services.