Far too many people believe that it will be hard or time-consuming to fix bad credit, but there are some very simple steps you can take that can improve your credit score quickly.
The key to knowing the most effective steps to take is to understand what factors most affect your credit score. It's also important to avoid doing anything that could be considered illegal in your effort to try and fix bad credit. You can also look for professional credit counselling in Toronto via https://www.empireonecredit.com/credit-counselling/
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Over Limit and Past Due
Perhaps the quickest step you can take to repair bad credit is to find a way to raise some cash and pay off any past due debts. You should also reduce credit card balances that are over the credit limit. This particular section of your credit report accounts for 30% of your total score, so it can really make a difference.
If you already have a history of late or missed repayments, then your credit score will be negatively affected. Perhaps the most positive step you can take to fix bad credit is to break down your monthly payments into smaller, weekly payments and begin paying more frequently than you should.
Your creditors will notice the smaller, more frequent payments that still add up to at least the minimum amount and will report these changes positively. Your repayment history accounts for 35% of your total score, so fixing bad credit will be easier if you can find a way to begin making regular payments again.
When you factor in overdue or missed payments and balances that are over limit together, these two things account for a very large portion of your credit score. A debt consolidation loan might be an option to help you get rid of those overdue bills and get your creditors off your back.