You will find it almost impossible to restore your bad credit score to an acceptable level. However, you will have to work hard if you want to get auto loans, credit cards or mortgages.

Fortunately, increasing your credit score is easier and shorter than you think.

Here are some steps you can take today that could help you increase your credit score by 100 points or more in less than a year.

 

Do these 100 points really matter?

credit

A gain of 100 points means a lot of things. For example, with a score of 580, your credit rating is at the boundary between “poor” and “very poor.” If you increase your score to 680, then you will have a “good” credit score. Then, 40 more points will be enough for you to obtain an “excellent” credit score with a score of 720. Everyone does not display the same score, but if you increase it by 100 points, you will get loans much more easily.

 

How to start?

credit

First, start by checking your score and your credit report. TransUnion and Equifax, Canada’s leading credit bureaus, can help. You can request these checks by mail or online (allow for some fees). This will allow you to know your credit score, and you will be able to see if loans already repaid or credit cards, which you no longer use, always appear on your credit report.

 

Use your credit

Use your credit

Your credit score depends, in part, on the use of credit. You must therefore use credit cards to increase your score. It may seem contradictory, but it is not! You will use your cards and the company will report this activity to the credit bureaus. You will increase your score. To do this, you will need to accumulate smaller purchases and repay them as soon as possible. You will raise it without exposing yourself to more debt.

If you do not have credit cards, ask for a secured card. This card requires a deposit. Once this is done, you use it as a regular card to increase your credit score with small purchases that you pay immediately.

 

Pay your bills

 Pay your bills

Of course, paying off your debts is the most difficult step in increasing your credit score. Concentrate on one account at a time, while making minimum payments on your other bills. If you start with the account with the lowest balance, you will pay off this debt very quickly.

How to borrow money while going through this credit score strategy? Remember that you want to use your credit card only for purchases that you can pay back quickly. Instead of borrowing larger amounts with the card, consider a personal loan online. These loans do not require a complete credit check. So you can get them without having an excellent credit score.

If you follow these tips, you can add 100 points to your credit rating in a year or two.

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