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.
If you have bad credit, you’re not alone. Plenty of consumers across Canada suffer from poor credit that is hindering their financial freedom. But while bad credit can definitely put a damper on your ability to get approved for new credit, it doesn’t mean you’re stuck with it forever.
No matter what position you’re in, there are ways to improve your credit scores, including a variety of credit-building programs.
If you have a bad credit score, there are programs available that can help you rebuild your credit:
KOHO is a fintech company in Canada that offers an easy and hands-free way to build credit. When you subscribe to KOHO’s Credit Building Program, they’ll open a line of credit for you to help you build a positive payment history.
KOHO’s Credit Building Program is a 6-month program that has a $10 monthly fee. KOHO will open a line of credit in your name and you’ll make monthly payments toward your line of credit. All your payments will be reported to one of the major credit bureaus in Canada. If you have really bad credit, you may want to consider subscribing to the program multiple times in order to build a longer and more positive payment history. The more positive your payment history, the more likely it’ll help build your credit scores
In order to be able to subscribe to KOHO’s Credit Building Program, you’ll need to:
Billi Boost is a unique credit building feature of the Billi app. With it, you can use your monthly rent payments to help build your credit instead of having to take on new loans, credit cards, or other products that cause debt. Billi Boost keeps track of your rent payments and reports them periodically to the credit bureau.
In fact, Billi Boost helps automate your rent payments by providing you with reminders to pay your rent so that you’re never late.
While the Billi app is free, keep in mind that there’s a monthly fee of $4.99 to use Billi Boost. Additionally, it can take about 4 to 6 months to see your credit score increase.
It’s very easy to use Billi Boost to help you build credit. All you have to do is follow these steps:
If you’re looking to borrow money while improving your credit scores at the same time, you might find yourself getting rejected for different loan products. In this case, a credit building savings program may prove to be helpful. These programs are designed to help consumers build or improve credit and are ideal for those who’ve experienced past financial hardships that have led to poor credit scores.
A credit building savings loan (sometimes referred to as a credit building program) allows you to make low weekly payments to the program provider. The provider will report all your payments to the major credit bureau(s). As you continue to make timely payments, you’ll build a positive payment history which can help improve your credit scores.
It’s important to remember a credit building savings loan is not an actual loan. Rather you make payments to the provider for a certain number of months. Each payment is stored in a trust and is given back to you at the end of the program, minus any interest and fees. Through the program, you’ll be able to build credit and save money.
Spring Financial | Learn More |
Refresh Financial | Learn More |
It can be tough to get approved for a traditional credit card with bad credit. Secured credit cards, on the other hand, are much easier to secure because all you need to do is provide the minimum security deposit, which can start as low as $50. So long as you can provide the security deposit, you’re pretty much-guaranteed approval.
Secured credit cards work just like regular credit cards, except you’ll need to provide a sum of money as security. Often, although not always, your security and credit limit will be the same amount.
As you make payments, the lender will report them to one or both of the credit bureaus. This, in turn, will help you build a positive payment history which can positively impact your credit scores. The main drawback to secured credit cards is their lack of perks. Unlike a regular credit card, there’s usually no point system or added perks like travel insurance.
Plastk Secured Visa | Learn More |
Neo CardTM (Secured) | Learn More |
Capital One Guaranteed Secured Mastercard | Learn More |
Credit counselling is a service offered by both for-profit and non-profit companies to help individuals get back on track with their finances. These programs offer debt relief solutions through education, budgeting, and guidance. They also offer ways to ultimately reduce and even eliminate debt altogether.
Credit counsellors generally work by reviewing your overall finances. They will evaluate your income, debt, and savings goals to create a budget for you. However, sometimes more extreme measures are required. In certain cases, credit counsellors may recommend a debt management program or that you speak to a Licensed Insolvency Trustee to discuss a consumer proposal or even bankruptcy.
Consolidated Credit | Learn More |
Full Circle | Learn More |
BDO First Call | Learn More |
Companies associated with credit repair work by obtaining your credit report and communicating with creditors on your behalf to get rid of any black marks on your report as soon as possible. However, it’s important to note that only negative remarks that are actual errors can be removed. The removal of such negative notes can have a positive impact on your credit scores.
Credit repair companies can help build your credit, but they cannot do anything you can’t do on your own. They simply help you read your report and file disputes on your behalf for a fee.
Credit scores range from 300 to 900, with scores closer to 300 being poor and scores closer to 900 being excellent. Credit scores are used by lenders to evaluate the likelihood that you’ll make your payments on time. A higher credit score generally means the borrower is less of a risk and will be more likely to make timely loan payments every month.
There are five factors that generally affect the calculation of credit scores:
There are a number of reasons why your credit scores may have fallen. These are some common reasons that can cause your credit scores to drop:
Reduction In income – Like job loss, getting a pay cut can influence your ability to afford the payments you’re already obligated to make. This can lead to missed payments which could lead to lower credit scores.
If you’re looking to build credit from the ground up or rebuild your credit, there are plenty credit-building programs for you to take advantage of. Just remember, there’s no guarantee that any one product will improve your scores. Credit scores fluctuate for a number of reasons, just be sure to make a consistent effort to build it.
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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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KOHO’s Credit Building Program helps you build a better credit history with easy to manage payments for just $10/month.
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