Rebuilding Your Credit

Four Steps To Rebuilding Your Credit

1. Develop a savings habit. Saving as much as you can is important, but saving regularly is even more important. Make regular contributions to a savings account. Take advantage of any direct deposit programs your employer may offer. It's easier to get into the habit when the money is never in your chequing account and goes directly into your savings account.

2. Review your Equifax and TransUnion credit histories annually. Understand the contents of your credit report and have any discrepancies corrected. You do not want problems to get in the way of rebuilding your credit.

3. Create and follow a budget. Establishing good money management habits will make it easier to obtain and manage your debt. Consistent, on-time payments to your creditors will help rebuild your credit.

4. Once you have saved $500 - $1,000 and resolved any problems in your credit records apply for a credit card. Shop around to find the card with the best terms that fits your needs. If you can't get an unsecured major credit card apply for a secured card.

Repair Your Credit

Credit and Saving: Four Good Reasons to Save Your Money

1. If you lose your job tomorrow the money in your savings account will help to pay your bills.

2. If you have an unexpected expense you can use your savings to pay for it rather than having to use credit.

3. When you begin the credit rebuilding process you may need money in a savings account to qualify for a credit card.

4. Creditors will feel more comfortable with extending credit when you have a healthy balance in your savings account.