Here are some easy tips you can start implementing to start fixing your credit.

Ask yourself these questions

1. Do I make my payments on time?

2 .How do I use my credit? Do I use all of it?

3. Do I have a budget I stick to?

4. Have you checked for errors in your credit report?

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Why pay bills on time

It is crucial you pay your bills on time because one late payment can change the course of your credit score and damage it. Payment history makes up 35% of your credit score, so you don't want to ignore this. Setting up automatic payments so you never forget to pay would be the ideal scenario, however there are ways to work around this if you are not able to pay the full amount due. Banks offer a minimum amount due you should pay, never skip this.

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Why you should NOT use all your credit

You would think banks were looking only if you paid your bills or not, well no, they are also interested in your financial behaviour and how you manage your credit responsibly. This means keeping your credit utilization ratio under 30%. If you have a credit card with $1000 limit and you're using up the full amount, banks see this as "oh, they spend everything they have available." Whereas if you spend $700 or less of this $1000 limit, banks will see you as a safe spender which rationalizes the amount spent versus the amount allowed to spend. It shows you don't "need" to spend as much and makes you more reliable.

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‍Why you must have a budget, or an idea of one

Creating a budget is easy, the hard part is sticking to it, it's like committing to work out, or following a diet, but like most things in life it's all about creating a routine. Once you start, it will be a part of your day to day and you won't even notice. It's all about reminding yourself this healthy habit will lead you to a better life. Create a budget by adding your income and subtracting your monthly expenses. We will dive deeper into this in future newsletters.

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Why you should double check your credit report

First of all, what is a credit report? It is basically a behind the scenes of all credit accounts you currently have on file, and it is what determines your credit score and eventually will lead you to getting financed or not. Based on what you find here you can take actions to improve. It may sound overwhelming, but the whole process can be simple if you are in the right hands. We advise you to not pull your credit report very often because this action may decrease your credit score if pulled too often, this is why it is better to have a financial consultant to guide you. Make sure you are assessed by experts at financing, who enrol you in financing programs that will help you better your financial life. If you're looking for someone to help you, give us a shout.

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