How Can I Repair My Credit?

First, important to know is that except in very special cases, bad credit marks will stay on your credit report for up to seven years.

However, if you feel that you cannot wait out that seven year period, you can try to repair your credit ratings on your own. This is what you can do to fix your credit history:

Start by obtaining a copy of your credit report, and examining what it says. You cannot begin fixing your problems until you know exactly what they are.

Next, pay off all of your bills. If the only thing that is negative on your credit report is $200 dollars on an old credit card, just save up that amount of money, contact the credit card company, and pay it off.

Paying off your debts is the simplest path to repairing your credit, but if you find yourself unable to make the payments, you may have to consider bankruptcy. Note, however, that bankruptcy is generally considered the last resort option and that a number of alternatives to bankruptcy are available and should be considered.

Borrowing some fully secured money can help you repair your credit history. Secured loans are the debts you obtain that are backed up by an asset or guarantee (car loans for example). If you do not pay, your creditor will sell the “security”. You may also want to consider having someone co-sign or guarantee your debt. In this case, if you pay the loan your credit record will improve, but if you don’t, your co-signor is responsible for the payment.

Next, try to repair your credit ratings by acquiring a secured credit card. You can do this by putting a certain amount of money on a deposit with a bank, and pledging the money as security. If you do not make the necessary payments, the bank will simple take that money out of your deposit, and reduce you available credit accordingly.

You could borrow for an RRSP. Banks tend to be more impressed by people with RRSPs because it shows they are looking towards their future. When you get a tax refund, use that money to repay the loan. You will be paying off the loan faster than necessary, and it will significantly improve your credit report.

Borrow even if you don’t have to. Get a small line of credit to use for paying off bills, then pay off the line immediately. Repeating this step will improve your credit report quickly.