Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
When it comes to getting approved for a loan that too at a lower-interest rate, your credit will generally have a big impact. High credit scores can not only help improve your odds of getting approved for a loan, but they will also help you access lower interest rates and better terms, thus making your loans more affordable. If you have poor credit and are looking to quickly improve your credit, there are certain actions you can take to increase it.
How fast you’re able to increase your credit score depends on a number of factors, generally, those with no credit history can raise their credit scores faster than those with bad credit.
Moreover, the fastest your credit scores may improve is about 30-45 days, which is when your credit scores are updated.
Building your credit typically takes time, but there are a few things you can do right now that may help you raise your credit scores in 30 days. Here are some suggestions that may give your credit scores a quick boost:
Your payment history usually accounts for around 35% of your credit scores. As such, paying your debts and bills on time and in full is important in improving your credit scores. Any secured credit cards or lines of credit should be paid off in full whenever possible. The more you build a positive payment history, the more likely it may give your credit scores a boost.
Just because your credit card company allows you to spend a certain amount of money on your credit card doesn’t mean you should max out your credit card every month. To help increase your credit scores quickly, it’s recommended to keep your debt-to-credit ratio around 30% and lower. This refers to the amount of credit you’ve used versus your total available credit limit. Doing so may increase your credit scores by 200 points or more quickly.
Any mistakes on your credit report could be pulling your credit scores down. Identifying these errors on your credit report and having them rectified, is perhaps the fastest way to increase your credit scores.
When you dispute an error on your credit report, it can take Equifax or TransUnion 5 to 30 days to investigate. Once the error is corrected, it may give you an immediate boost to your scores.
You can ask for a higher credit limit on your credit card or line of credit to help raise your credit scores. By increasing your credit limit, you’ll be reducing your debt-to-credit ratio, which on average accounts for 30% of your credit score calculations. The lower your ratio, the more positively it may affect your credit scores the next time it updates.
Debts in collections can severely negatively affect your credit scores. Paying off the debt may help improve your credit scores. If you’re unable to repay the whole amount right away, you may be able to ask creditors to accept a payment plan for the debt and report the debt as “paid.”
Being an authorized user on someone else’s credit card account may help you build credit. While an authorized user is not responsible for the credit card payments, the payments the primary account holder makes may be reported to the credit bureaus for both users. This, in turn, may help build your credit quickly. However, this depends on whether the creditor reports the credit account information to the credit bureaus for the authorized user.
If you have poor credit and are looking to increase your scores by 100 points, you will need to put in the work. This won’t happened overnight and depending on your credit profile it could take several months. But, don’t be discouraged, it is still an attainable goal.
Practicing the healthy credit habits we’ve outlined in this article is the best way to improve your credit. If a company or service promises that they can guarantee your credit will improve by 100 points, they are likely lying. All credit scores react differently, keep that in mind during your credit improvement journey.
In Canada, credit scores range from anywhere between 300 (for those who are just getting started and are building their credit from the ground up) to 900 points, which is the highest credit score that can be attained. That said, credit scores over 660 should qualify borrowers for typical loans, while scores under this mark will likely make it more difficult to get approved for a loan.
Generally speaking, lenders typically like to see a credit score of at least 660 before they qualify a borrower for a loan. However, scores under 660 might not afford borrowers with the best interest rates, making their loans more expensive to pay down.
When it comes to getting approved for loans and securing the lowest interest rate possible, a higher credit score is best. If you can get your credit scores to 800, you’ll likely be able to take advantage of the best rates and should have no problem getting approved for a loan, as long as all of your finances are in order and there are no other red flags that might worry your lender.
When it comes to increasing your credit scores to 800, it takes time, commitment and healthy credit habits.
Depending on your particular situation, it may take just a matter of a couple of months to inch your credit score back up. Regardless of where you fall on this spectrum, it’s important to take steps right now to improve your credit score so you can enjoy better rates and an easier time getting approved for a loan.
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Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
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