Top 5 Credit Repair Questions Answered
Welcome to our Hoyes Michalos Debt Free Digest where we round up personal finance topics from around the web to help you live, and remain, debt free.
You asked. We answered. In this month’s digest, we answer your most pressing questions on how to rebuild and repair your credit. We’re also proud to announce our first-ever free credit repair course, created just for you!
FREE Credit Repair Course
In our first-ever course, learn how to rebuild your credit after completing your consumer proposal or bankruptcy filing.
The course is entirely free, with short, easy-to-digest video explaining:
- how to manage your credit score;
- what kind of credit cards to get when rebuilding;
- how to dispute errors on your report;
- how to establish new credit accounts, and so much more!
Sign up below for lessons from our co-founder Doug Hoyes and get on the path to a better financial future.
Good Reads From Around the Web
Will a credit limit increase improve my credit?
It can, and there are two reasons for that:
- When you are first rebuilding, you want to acquire two active accounts with credit limits of $3,000 or more. If you have a limit below that, increasing your limits will help improve your score.
- If you charge a lot (so have a high balance come statement time), raising your credit limit can lower your credit utilization. A lower credit utilization can improve your credit score.
However, a high credit limit can be tempting. There is always a risk that you may overspend and face debt trouble. You’ll have to know your own spending habits and make sure that a higher limit doesn’t tempt you to overuse your credit card.
Also be aware that if you have very high limits on your credit cards, it can stop you from getting another loan. Your score might be high, but a new lender might be afraid to give you more credit.
Get enough credit to rebuild your score, but not more than you can comfortably repay. A high credit limit does not prove your worth.
Are secured credit cards a good way to build credit?
Yes, secured credit cards are a good way to start getting reacquainted with credit, as long as you pay your balance in full each month and on time.
A secured card is backed by a deposit you give to the credit card company. This usually means you’ll be approved for one more easily, although there is no guarantee.
Your payments on a secured card are reported to Equifax and TransUnion, allowing you to build a positive credit history and increase your chances of qualifying for a regular credit card in a shorter amount of time.
Note that most secured cards come with a monthly fee. They also charge a high interest rate, but as long as you make your monthly payments in full and on-time, you won’t be penalized with interest charges.
Our credit repair course has a lesson on what types of credit to get when rebuilding, including advice on credit cards.
Once you have bad credit, does it stay bad?
Absolutely not. The first step to improving your credit health is eliminating overwhelming debt (that’s the hardest part). Once you’ve taken care of that, you can easily start rebuilding your credit history.
While yes, your credit report will note your bankruptcy or consumer proposal filing for sometime after competition, you do not have to wait until the note is removed before getting new credit and rebuilding a positive history.
Follow the steps in our course and you will see your credit score improve even before your bankruptcy or proposal is removed from your credit report.
Can I fast-track fixing my credit? Can I pay someone?
The truth is, there is no fast-track method to fixing your credit. And there is nothing that a credit repair company can do for you that you can’t do yourself at no cost.
If you want to start rebuilding your credit as soon as possible, then take our free credit repair course. We built it with your needs in mind and it is the fastest way to rebuild your credit. It will take some time, but it’s worth the effort.
We know our clients want good credit to get a car loan or mortgage at a reasonable rate someday and our free course will make that possible. You can do this on your own. Start your credit rebuilding journey today!
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