Ways You Can Improve A Bad Credit Report
A lot of people find themselves going through a financial bad patch through no fault of their own. The company they had been working for may have collapsed, and they have lost their job, and the income that went with it, or they may have been seriously ill and had no income at all. When this happens people have difficulty keeping up with any loan payments they may have. Unfortunately, credit reports only see the facts and figures of the situation, and not the mitigating circumstances. The result is that you have a bad credit rating, so your life becomes even more difficult.
It is possible to get around this problem, but it won’t happen overnight. It took a long time to get into this mess and it will probably take you a long time to get out of it. If you see an offer by a company that promises to turn your poor rating round overnight, do not believe them, it is not possible, well legally it is not possible.
There is a way to improve your credit score, so that it is acceptable to loan companies, which is completely legal. This process will take a little time, but it will be worth it. Once completed your record will stay clean, as long as you continue to pay your creditors in an orderly manner in future.
The first thing you must do is to get a prepaid credit card. These are issued by MasterCard and Visa, though they are slightly different to normal cards they issue. Your spending limit is determined by how much you have prepaid onto the card. If you have deposited $200 on the card, your limit at that time will be $200. How much you have on the card is insignificant, but you must use the card. It will show on the records that you never reach your limit and that your payments are always on time.
It is a good idea to try and get as many of these cards as you can. If you use them sensibly your rating will improve very quickly. It will be to your advantage if the company that issues the card reports to at least one of the major bureaus, and if they report to all three so much the better. The reports that you get from these cards will be very positive, and this will show on your credit report.
Another way you can use to help you solve your problem is to get hold of your credit report from each of the agencies. When you have them, go through them thoroughly and find any mistakes. You must have a report from each of the agencies, as these can differ tremendously. They do not communicate with each other, or even base their results on the same data.
It is generally accepted that you are going to find quite a few inaccuracies. You must itemize these and then contact the credit bureau and get them corrected. It is their responsibility to verify that the information is accurate, otherwise they must change it accordingly, or delete it completely. By doing this, you will be improving your rating, just by making sure it does not look worse than it really need to.
It will take some time to improve a Toronto bad credit car loan rating so you have to be patient. However, it is possible. Once it has improved, you must take heed of all the lessons you have learned during your bad times, and turn them to your advantage. Life will then begin to improve dramatically, and it will all have been worthwhile.
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