Do you feel ashamed in front of traditional banks or lenders due to your bad credit? There are so many borrowers who might feel the same while applying any sort of financial aid. Because a good credit score is very important to have for getting fast approval of loans or anything like a job or no job, a rented home and etc.
Having bad credit makes the less possibility to avail all those facilities for you. Even there are high interest rates and fee that you need to pay with your bad credit. This is like a punishment that makes you feel guilty during your emergencies even.
According to the 2021 current report of (Simple Rate), Canadians who have an average credit score which is 650. There are 61% Canadians who have credit score above 750. Apart from that, there are 21% of them who have credit score from 680-749. There are only 3% who have credit score below 520.
Working on your credit score is very indispensible, when you want to get some financial support during your hard times because at the end. Your good credit rating will matter a lot to fix your problems which are standing for you.
Thank god! You finally reached the right place with your bad credit; you will face now no more distraction further. You need to now get ready to boost up your lower credit score (youtube.com) to grab financial facilities based on your needs.
What is a credit score?
Before moving ahead, it is necessary to know about what your credit score is all about first of all. The credit score contains a three digit number. And it helps the lenders taking the best decision to offer you any financial aid or not, depending on how your score is.
There are two different credit bureaus Equifax and TransUnion in Canada which have a control for generating your score whether up or down. In fact, your credit score is the soul of your financial status and it has categories from bad to excellent.
- 300 to 579 is considered very poor.
- 580 to 669 is considered fair.
- 670 to 739 is considered good.
- 740 to 799 is considered very good.
- 800 to 850 is considered Excellent.
Let’s just have a look at them because about 25% millennials are not aware of the credit score according to cnbc.com
There are some easy tips for bettering your credit score in 30 days:
- Don’t be late to pay bills on time:
Nothing will work for you if you are always late to pay off your bills. Your credit history keeps on noting every financial move you make that’s why you should be very careful while payment making.
Whatever payments you have made late which will not free you even that will stay for almost 7 years on your credit reports. In case you know that very well about your payments are going to be late then you should speak with your creditor immediately.
- Make your payments continuously:
If you are enough capable to make your little payments in a month which will also boost up your credit score by lowering your credit card balance. You should stick to making payments frequently in a month.
This will positively affect your credit score by taking a jump for the betterment of your credit rating. Thus, it is advised to every borrower for making their payments on time without extending the due date.
- Take your credit report errors seriously:
Your credit can be affected negatively due to any of the errors on your credit reports. It pulls your credit score down if you are not aware of this. That’s why you should try to fix it as soon as possible after finding that.
You can use your right to get the free reports of your credit by contacting the Equifax and TransUnion every week. You can report those errors to these agencies and recheck one more time. You would see the positive change in your score.
- Pay more than usual:
If you want to see fast change in your credit score then you would have to pay a bit more than you paid. This will help improving your credit score fast because your much payment making would play its role.
It might only be possible when you would have some extra money and you can find a part time job for that. You can manage that for one month only then you can follow the same routine, you will certainly feel surprised.
- Take advantage of your old cards:
This is also one of the ways to boost up your credit score in 30 days by not closing your old cards. What the lenders want to see if there were any problems with previous lenders. Therefore this is what matters a lot; not using your old cards can pull you towards a debt.
So you should use the cards for buying small useful things only and try to pay that as soon as possible, you will see the big difference here.
What are advantages of having good credit score?
You must have understood how you can boost up your bad credit score by following the tips mentioned above. Now what will happen once your credit score is improved, there must be some advantages. Yes, there certainly are!
You must have some expectations of your good credit score then you should hold your breath to know about the benefits as well. After all, you have worked really hard to make your credit rating better than it was earlier.
A few advantages after you have a good credit score!
- High chance of getting approval:
Your good credit score can help you getting the approval fast whether you are applying loans or it can be anything valuables that you need.
- Benefit of facing lower interest rates:
Generally, people have to pay high interest rates due to their bad credit while applying loans or they are looking for a rented home. But you can have low interest rates with your good credit rating, whenever you need that all.
- You will have your future bright:
If you have a good credit score you can’t face finance related problems ever you can reach the solution anytime, you need. Apart from that, you will get the first priority in everything, what you are looking for within the same time period.
- You can get a job easily:
Acquiring a job can be easy with the help of a good credit rating. Because your employer would love to hire those candidates who have good credit score rather than lower score.
You can see the positive changes in your credit score once you go through the tips mentioned above. Because your credit score matters everywhere, whenever you need to avail financial facilities during your emergencies.
Apart from that, you have your bad credit which can be like a burden on your pocket in form of high interest rates. So it is much better looking at your bad credit to improve that in almost 30 days by becoming responsible.
Susan Leigh is a professional writer and in her spare time she used to draw painting through watercolour and acrylic. She is a diehard fan of viewing sunset scenes over the sea. In her articles, you always see the professionalism and command over the topic and money management tips that help in achieving financial success.