From consolidating debts to financing major purchases or covering unexpected expenses, personal loans offer flexibility and convenience.

However, with the ease of access to personal loans, it is essential for borrowers to understand the legal framework and regulations that govern this financial product. In this guide, we will explore the state of personal loans in Quebec, the legality of lending practices, the role of the Office de la protection du consommateur (OPC), and more.

Legal Framework of Personal Loans in Quebec:

Personal loans in Quebec are governed by the Consumer Protection Act (CPA), which aims to protect consumers from abusive practices and ensure transparent dealings between lenders and borrowers. The CPA is designed to foster fair, honest, and responsible lending practices in the province. All lenders, including traditional banks and alternative lending institutions, must adhere to the regulations set out in the CPA when providing personal loans to consumers in Quebec.

One of the fundamental aspects of the CPA is the requirement for lenders to provide clear and comprehensive information to borrowers before the loan agreement is finalized. This information should include the total cost of the loan, the annual percentage rate (APR), any additional fees, the repayment schedule, and the consequences of defaulting on the loan. By providing borrowers with this essential information, the CPA ensures that individuals can make informed decisions regarding their financial commitments.

The Role of the Office de la protection du consommateur (OPC):

The Office de la protection du consommateur (OPC) plays a crucial role in safeguarding the rights of consumers in Quebec, including those seeking personal loans. As an independent administrative body, the OPC oversees and enforces the provisions of the Consumer Protection Act.

One of the primary functions of the OPC is to ensure that lenders comply with the legal framework and do not engage in predatory lending practices. They investigate and address consumer complaints, monitor the market for any signs of unfair practices, and take appropriate actions against non-compliant lenders.

The OPC also provides valuable resources and information to consumers to help them understand their rights and make informed financial decisions. Their website offers guides, tips, and tools to help individuals navigate the lending landscape and avoid falling victim to scams or fraudulent lending schemes.

In cases where a lender is found to be in violation of the CPA, the OPC has the authority to impose penalties, fines, or even revoke their license to operate. This level of oversight and enforcement helps maintain a fair and transparent lending environment in Quebec.

Interest Rates and Usury Laws:

Quebec, like many other provinces in Canada, has usury laws in place to protect borrowers from excessive interest rates and predatory lending. Usury laws set a maximum interest rate that lenders can charge on personal loans. In September 2021, the maximum legal interest rate in Quebec was 35% annually.

These usury laws serve to prevent unscrupulous lenders from taking advantage of vulnerable individuals in need of financial assistance. Borrowers should be cautious and avoid lenders who charge interest rates significantly higher than the legal limit.

However, it is important to note that interest rates on personal loans can vary based on factors such as the borrower’s creditworthiness and the type of lender. Traditional banks typically offer lower interest rates compared to alternative lending institutions, which may cater to individuals with less-than-perfect credit scores.

Alternative Lenders and Online Platforms:

In recent years, the rise of alternative lenders and online platforms has expanded the options available to consumers seeking personal loans in Quebec. While traditional banks still dominate the lending landscape, these alternative lenders offer faster approval processes and greater accessibility for individuals with less-than-perfect credit scores.

Alternative lenders often use different criteria to assess a borrower’s creditworthiness, and some may be willing to extend credit to individuals with lower credit scores or limited credit histories. However, borrowers must exercise caution when dealing with alternative lenders and online platforms. Some may operate outside the regulatory framework of the CPA, and their practices might not be overseen by the OPC.

As such, borrowers should thoroughly research and choose reputable and licensed lenders who comply with Quebec’s consumer protection laws. Reading customer reviews, checking the lender’s licensing status with the OPC, and comparing loan terms and interest rates from multiple sources can help borrowers make informed decisions and avoid potential pitfalls.

Loan Repayment and Default Consequences:

Before taking out a personal loan, borrowers should carefully assess their ability to repay the borrowed funds. Defaulting on a loan can have serious consequences, including damage to the borrower’s credit score and possible legal actions by the lender to recover the outstanding debt.

The Consumer Protection Act in Quebec also outlines the rights and responsibilities of borrowers and lenders in case of default. If a borrower faces financial hardship and is unable to make timely payments, it is crucial to communicate with the lender promptly. Some lenders may be willing to negotiate modified repayment plans or temporary forbearance options to help borrowers overcome their financial challenges.

Conclusion:

The state of personal loans in Quebec is governed by the Consumer Protection Act (CPA), which aims to ensure fair and transparent lending practices. The Office de la protection du consommateur (OPC) plays a vital role in overseeing and enforcing these regulations, safeguarding the rights of borrowers and promoting a healthy lending environment.

Here are a couple trusted brokers/lenders:

• Prêt sans enquête de crédit
• Prêt rapide sans refus
• MeilleurPrêt
• Alterfina
• Prets514

As a borrower in Quebec, it is essential to be informed about your rights and responsibilities when taking out a personal loan. Always review the loan terms carefully, including the interest rates and fees, before committing to any financial agreement. By understanding the legal framework and working with reputable lenders, individuals can make sound financial decisions and use personal loans as a valuable tool to achieve their goals and manage their finances responsibly. Whether dealing with traditional banks or alternative lenders, exercising caution and seeking information from trusted sources can help borrowers make the most of personal loans while protecting their financial well-being.

A strong business credit score is an essential component of running a successful business. It can determine your ability to secure business loans, lines of credit, and other financing options, as well as the terms you receive from suppliers and landlords.

In Canada, credit reporting agencies Equifax and TransUnion are the main providers of credit reports and scores for businesses. In this article, we will discuss the steps you can take to check your business credit score in Canada, understand the factors that influence your score, and take steps to improve it.

This includes obtaining a copy of your credit report, monitoring it for errors and fraudulent activity, and seeking professional advice if needed. Understanding and managing your credit score can help you navigate the financial side of running a business with more confidence.

Checking your business credit score in Canada is an important step in managing your finances and making sure your business is in good standing. A good credit score can help you secure loans, lines of credit, and other financing options. It can also help you negotiate better terms with suppliers and landlords.

How to Check Your Credit Score in Canada?

Here are some steps you can take to check your business credit score in Canada:

1. Get a copy of your credit report: You can request a free copy of your credit report from either Equifax or TransUnion, the two major credit reporting agencies in Canada. Make sure to review the report carefully and look for any errors or inaccuracies.
2. Check your credit score: Your credit score is a three-digit number that ranges from 300 to 900 and represents your creditworthiness. A higher score means you are considered a lower risk to lenders and other creditors. Equifax and TransUnion both offer a variety of options for checking your credit score.
3. Understand the factors that influence your credit score: Your credit score is based on a variety of factors, including your payment history, credit utilization, length of credit history, and types of credit accounts. Understanding these factors can help you improve your score over time.
4. Monitor your credit report regularly: It’s a good idea to check your credit report at least once a year to make sure there are no errors and to monitor any changes to your score. If you find any errors or inaccuracies on your credit report, you should take steps to correct them as soon as possible. This can include contacting the credit bureau, the creditor, or even a credit repair service.
5. Be aware of fraud: Be sure to monitor your credit report for any suspicious activity, such as accounts you didn’t open or charges you didn’t make. If you find anything suspicious, contact the credit bureau and the creditor immediately.
6. Seek professional advice: If you are having trouble understanding your credit report or improving your score, you may want to consider seeking professional advice from a financial advisor or a credit counselor. They can help you understand your credit situation and come up with a plan to improve your score.

Read: Top Credit Repair Companies In Canada

Bottom Line

In conclusion, checking and understanding your business credit score in Canada is essential for the success of your business. By regularly monitoring your credit report, understanding the factors that influence your score, and taking steps to improve it, you can ensure that your business is in good standing and can secure financing options on favorable terms.

It's also important to be aware of any fraudulent activities and take immediate action if you suspect any. If you are having trouble understanding your credit report or improving your score, professional advice from a financial advisor or credit counselor may be helpful. 

Remember, managing your credit score is an ongoing process that requires attention and effort, but it’s well worth it for the long-term success of your business.

But did you know that there’s a couple steps that you can apply right now and (almost) instantly see a positive difference in your credit score?

In this article, we compiled our 6 favorite ways to improve your credit score.

6 Tips To (Almost) Instantly Repair Your Credit

Below, you’ll find our 6 proven tips to help you improve your credit score, without doing that much work.

1. Pay Your Bills On Time

You probably heard this advice times and times again. But paying your bills on time might be the one thing keeping you from a perfect credit score.

Paying your bills on time equals out to about 35% of your credit score calculation hence the importance of that doing so if you want to increase your credit score fast. If you usually forget about your bills, you can always setup autopay.

Read: Top Credit Repair Companies In Canada

2. Dispute False Claims On Your Credit Report

False (or erroneous) claims on your credit report can heavily affect your credit report. Did you know that almost one third of Canadian consumers experience an error or a false claim on their credit report during their lifetime?

A false or erroneous claim is when a financial company adds a false or erroneous information about your credit history on your credit report. This mostly happens when your identity has been stolen or when a bank or company mistakenly adds in someone else’s information to your credit report.

If you notice any false claim on your credit report, file a dispute with the credit bureau as soon as possible and, within 30 days, it should be removed from your credit report.

A false claim removed from your credit history could improve your credit score by hundreds of points in less than 20 minutes of actual work.

3. Monitor Your Credit Report

To keep up with false and erroneous claims on your credit report, we recommend you using a free credit report monitoring service such as this one from Loans Canada. This way, you will be able to receive an alert whenever a negative item is added to your credit report and dispute it if it’s a false one.

4. Lower Your Credit Utilization Rate

Most big credit bureaus recommend having a credit utilization rate of less than 30% on your credit cards.

What is a credit utilization rate? - A credit utilization rate is the total amount of credit that you used during a period divided by the total amount of credit you're allowed to use. 

Example: If you have 3 credit cards with a total credit limit of 3000$, you should never have more than 900$ on you statement balance at the end of the month.

Read: Do Free Credit Repair Companies Exist

5. Increase Your Credit Limit

If there’s no way for you to keep up with the credit utilization rate of 30%, we actually recommend you increase your credit limit.

If we take the previous example where your credit limit is 3000$ and you’re using, let’s say 1500$ every month, you can lower that credit utilization rate from 50% to 25% by increasing your credit limit by 3000$ to a total amount of 6000$.

Although, be careful! Increasing your credit limit doesn’t mean that you should start spending more.

6. Stop Closing Your Credit Cards

Whenever you’ve finished paying off a predatorial credit card after years of trying to pay it off, don’t close it (unless it charges you membership fees). The longer your credit history is, the better your credit score is.

Bottom Line

As we said multiple times over and over again, increasing your credit score is very hard. But, if you take the time to apply the 6 quick tips we went over in this article, we can almost guarantee an increase in your credit score in the very near future.

If you don’t have the time (or will) to do all of this yourself, did you know that you can actually outsource all of this work to a credit repair specialist? Getting started is easy and free, just book a call by clicking the button below and your journey to a perfect credit score will begin!

There are so much different credit repair companies in Canada so we’re not surprised that you’ve stumbled upon this page where we will dissect and compare the different options available to Canadians looking to improve their credit score.

But, first of all, if you’d rather us do all the work for you, click on one of the buttons on this page to book a completely FREE call with one of the top credit repair specialists in your area without having to filter through the bad ones!

Top Credit Repair Companies In Canada

Here is our list of the top providers for credit improvement/repair services in Canada:

Note: This list is based on our own preference.

1. CreditRepairSpecialist

Surprise, surprise, this is us! We know how hard it is to find a good credit repair company, this is why we created and easy system where you just fill in a quick form and are able to book an entirely free call with an accredited credit repair specialist.

During the call, our partner will go over:

• Your current financial situation.
• Your credit history.
• Your budget.
• Your credit repair plan.

To get started, you just need to click one of the green buttons that you’ll find all over the page. It’s as easy as that.

2. Marble Financial Score Up

Marble Financial Score Up, is a SaaS (software as a service) that you can subscribe to and get a detailed plan of action to help you raise your score in the shortest amount of time possible.

The software allows you to monitor your credit score, pinpoint the issues that are affecting your credit score the most, find errors in your credit report and even set a target credit score that you want to achieve. Best of all, you can get started with the application for free by joining and creating an account directly on their website.

3. Credit Building by KOHO

Another popular service used to build and repair your credit is through KOHO’s credit building plan.

KOHO is a popular financial service provider & smartphone app based in Canada. Recently, they created a credit building offer that is actually super interesting for everyone looking to improve their credit score for a very low fee of 10$ a month for 6 months.

When you sign up for the offer, you will deposit a predetermined amount in your KOHO account (as a loan) that will then be, automatically, paid by the same amount in the account. Basically, with KOHO Credit Building, you’re getting a loan that you can’t use.

Every time a payment on this loan is made, a positive signal will be sent to one of the biggest Canadian credit bureaus and, hence, improve your credit score.

As soon as you’re done with the loan, you can repeat the same transaction over and over to continue increasing your credit score over the years.

More: Do Free Credit Repair Companies Exist?

FAQ

Lexington Law is one of the biggest credit repair attorney firms in the United-States, but unfortunately their services are currently not available for Canadians to use.

This is why, we decided to provide you with the best alternative to Lexington Law credit repair for Canadians!

What Is Lexington Law?

Lexington Law is an American law firm established in 2004 by John C. Heath. The firm specializes in providing credit repair services to Americans for a monthly fee of around $100. The firm abides by the Credit Repair Organizations Act (CROA) and is considered to be one of the best firms in America!

Read more: Do Free Credit Repair Companies Exist?

What Is The Best Canadian Alternative To Lexington Law’s Credit Repair Services?

If you’re a Canadian and are looking for credit repair services, you probably already stumbled upon Lexington Law’s services.

Unfortunately for you, you probably already realized that even though Lexington Law has some very good reviews and is being recommended by multiple bloggers and reviewers, their services aren’t available in Canada.

So, instead of wasting your time testing and reading reviews for other services that aren’t even available here in Canada, we actually recommend that you use our proven matching service by booking a FREE call with a trusted credit repair specialist near you! You just have to click on one of the buttons on this page to book your free call, trust us it’s worth it.

8 Tips To Help You Fix Your Credit

1. Increase your credit card limit: Even though this probably sounds a bit off to your ears, increasing your credit card limit actually reduces your credit utilization rate. Which is a huge factor in the credit score calculation.
2. Pay your bills on time: As you can imagine, whenever you miss your bill payment, it sends a negative signal to credit bureaus (and therefore affects your credit score). If you struggle to pay your bills on time because you’re forgetting about them, we recommend having multiple reminders set on your phone or activating auto pay for your recurring bills.
3. Create a budget (and follow it): Creating a budget and following it is another important step to increase your credit score. If you have a bad credit score, it’s probably because you have one or more bad financial habit. Having a budget will help you restrain the bad financial habits and stay on the healthy path.
4. Consistency is key: Just like with anything else, consistency is key when it comes to repairing your credit. In fact, half applying any of the tips that we provide won’t help you raise your credit score. The best way is starting slow but staying consistent.
5. Use less than 30% of your credit: Credit utilization rate is a very important factor in the credit score formula. Generally, it’s recommended to never have more than 30% of your total credit on your end of the month statement balance. What does that mean? Basically, if you have a total of 1000$ of available credit, you should never have a balance over 300$ at the end of the month.
6. Consolidate your debt: If you have multiple different debts at a very high interest rate, we recommend that you consider consolidating your debt. Why? Not only you’ll get a better interest rate (and therefore lower payments), but you’ll actually be able to start paying off your debt instead of only paying the interest at the end of each month.
7. Monitor your credit score: If you have a difficult time following what’s happening with your finances, we at least recommend you monitor your credit score on a weekly basis. You can do it for free by clicking here.
8. Dispute any errors on your credit history: If you have errors on your credit history, make sure that they are corrected. This will heavily affect your credit score in a positive way. You can do it yourself by contacting your creditors and credit bureaus or use the help of a credit repair service.

À lire: How To Repair Credit Quickly? – Canadian Guide

Tons of credit repair companies are known to charge a hefty amount on a monthly (or per service) basis to help their customer increase and improve their credit score.

Even though some of their services could be considered expensive, they could be well worth the price if they help you raise your credit score and qualify for a mortgage for your dream home or for a car loan at a better rate.

This raises the question: Do free credit repair companies exist?

Short answer is: no.

There are no truly “free” credit repair companies in Canada, even though some will offer part of their service for free, there will be fees at some point.

The only free way to repair your credit is by doing all the steps yourself or by getting help from a non-profit organization.

But, if you’re not sure on the steps to do so, or simply don’t have the time, we strongly recommend opting for a credit repair company first. Click on one of the buttons on this page to book a FREE call with a credit repair specialist and he’ll go over your credit score/history and will help you understand what the next best steps are to repair your credit.

More: Repairing Credit After Bankruptcy – Guide

How Can Credit Repair Help You?

Repairing your credit will improve your credit score and help you create a better and healthier financial habit by helping you understand the importance of managing debt.

Usually when repairing your credit, the first step a credit repair company does is going over your credit history with you and helping you pinpoint the biggest issues so you can create a plan of action along with the qualified credit repair professional.

These are some of the advantages of credit repair and what it can bring you:

• A FREE credit history and repair analysis
• Custom financial plan to repair your credit
• Answers to all of your questions

What To Look Out For With Credit Repair Companies

If you already started searching for a credit repair company to help you fix your credit, you probably already noticed the vast amount of scammers online.

Scammers love the credit repair industry because you can charge a monthly fee without doing anything to help the customer and it will take him a couple months to figure out that he’s paying for a service that isn’t being provided to him.

Thus, the importance of finding a good credit repair specialist!

These are a couple things to look out for when you’re looking for a credit repair company to help you fix up your credit:

• Asks you for an upfront fee for the first consultation or before doing any work at all.
• Insists on disputing information on your credit history that you know is true. Example: disputing an unpaid bill that you haven’t actually paid.
• Tells you not to contact the credit bureau directly.
• Pretends that they’ll be able to fix your credit score very quickly. Credit repair takes time and can’t be done instantly.
• Lies about anything or gives you the wrong information.
• Doesn’t tell you your legal rights.
• Tells you that they can get you a new identity with a clean record.

Overall, ask questions before paying any amount of money. Most reputable credit repair companies will offer a free consultation where you’ll be able to clear up any insecurities or questions that you have about the company. If something sounds fishy, trust your gut, it’s probably a scam.

If you don’t want to waste your time calling all the credit repair companies in your area, you can actually just click on one of the buttons on this page and book a FREE call with a qualified credit repair specialist!

More: How To Repair Credit Quickly? – Canadian Guide

FAQ

Whether you’re looking to buy a new house in the near future, rent your first car or your first apartment, news flash: you need a good credit score.

That’s why we decided to write the complete 7 step guide to help Canadians repair their credit quickly without the hassle of having to “wonder” what actually affects your credit score. Whether you have a bad credit score or an average credit score, this guide will be useful for you!

How To Repair Credit Quickly? – A 7 Step Guide

Follow our easy 7 step guide to repair your credit quickly in Canada:

1. Pay Your Bills On Time

Although you may be tired of hearing it, it’s no secret that paying you bills on time may be the most important factor in your credit score.

If you’re used to paying your bills at the last second (meaning on the day your payment is due), we strongly recommend that you start paying your bills a few days in advance with automatic payments (or manual). By doing so, you make sure that your payment will be cleared on time for the due date.

2. Create A Budget To Better Manage Your Money

If you’re having troubles with paying your bills on time, it’s possible that it’s because of money mismanagement.

Having a solid budget that you follow on a weekly basis will help you have your bills paid on time and help clear up some of the common money management mistakes.

3. Aim To Use 30% Or Less Of Your Credit

It’s also very important to use less than 30% of your whole available credit at any time during your credit statement.

This is called credit utilization rate. Long story short, the credit utilization rate is the credit that you’re using during a period divided by the total number of your available credit (credit cards, credit lines, etc.).

Example: If you have 2 credit cards with a total of 10 000$ of credit available on them, you should never use more than 3000$ on those (or 30% of 10 000$).

There are two main ways to keep your credit utilization below 30%:

1. The first and easiest way to keep your utilization rate under 30% is by paying off your entire credit card balance before the due date! This way, you’ll always be able to have a credit utilization rate of 0% at the end of the month.
2. Then, another popular way to reduce the credit utilization rate is by applying for more credit. Why? Because, if we take the example from above, with a 10 000$ total credit and 3000$ of used credit, you have a credit utilization rate of 30%. But, if you increase your credit card limit by 5000$, you now have a total credit of 15 000$ and a credit utilization rate of 20%.

4. Pay Off Your Credit Card Twice A Month

If you already pay off your credit cards once a month, you’re most likely already convinced that you’re doing the best thing that you can do for your credit score.

News flash: Not really.

In fact, the reality is that you must pay your outstanding balance at least twice a month to send the best signals to your creditors and the credit bureau.

Let’s look at the following example to better understand the importance of this:

Let’s say that you have one credit card with a 1000$ limit and you decided to use all 1000$. At the end of every month, you pay the entire balance at the due date (or one or two days prior). Since the payment processing can take from anywhere from 24 to 48 hours, your payment may not be processed on time and could send a credit utilization rate of 100% to the credit bureau!

To avoid this, we recommend paying your outstanding balance as often as you can. If you have a tendency to forget, you can always set up automatic payments.

5. Consolidate Your Debt

If you have a ton of different outstanding debt (credit cards, credit lines, etc.), you can consolidate your debt under a lower interest rate to easier the burden of debt and help you pay your bills on time. You can consolidate your debt through most financial institutions or private lenders.

6. Dispute Errors On Your Credit Report

Did you know that errors on your credit report are possible?

And not only they are possible, the FTC reports that almost one in five persons experienced at least one error on their credit history.

An error on your credit score could be the crucial thing stopping you from a good credit score. The best way to dispute errors on your credit score is by doing it through credit bureaus such as TransUnion or Equifax.

The process is usually pretty straightforward but could take a lot of your time. If you prefer this being handled by a professional, click on one of the big green buttons on this page to book a free call with a credit repair specialist that could help you on your journey.

Once the error is disputed, you can expect the investigation to take up to 30 days (or more for more complex errors) and then, once it’s completely removed from your credit history, you’ll be free to start enjoying your brand-new corrected credit score.

7. Monitor Your Credit Score Closely

It’s super important to always monitor your credit score very closely.

You never know what error could creep into your credit report?

You can easily follow you credit score through the following service, it’s easy to register and, best of all, completely free!

Check your credit score now (for FREE)!

Bottom Line

To end this, let’s take a look at the factors that have the biggest contribution on your credit score:

• Utilization rate of your credit.
• Pay your bills on time.
• Your credit limit.
• Budgeting.
• etc.

Quickly repairing your credit score is not that hard when you apply all of the tips from this guide. However, if you need more help, we recommend you jumping on a FREE call with a credit repair specialist near you by clicking on one of the big green buttons on this page.

If you just went through a bankruptcy, your credit score is most likely not in its best spot.

That’s why we decided to create this short informational article about repairing your credit score after bankruptcy.

How Much Time Will It Take To Improve Your Credit Score After Bankruptcy?

Unfortunately, it’s very hard to give an exact timeline for how much time it will take you to improve your credit score after bankruptcy.

Basically, everything depends on your individual situation: whether you’re able to get other credit, your financial habits, etc.

The main thing that you need to keep in mind when trying to repair your credit score is consistency is key. You need to apply the tips in this article consistently for them to help your credit score.

8 Tips To Repairing Your Credit Score After Bankruptcy

1. Keep An Eye On Your Credit Report

We strongly recommend that you install an app on your phone to keep a close eye on your credit report & history.

This way, if there’s any fraudulent information or just plain errors, you will be able to act quick before your credit score is affected by the issue.

There are tons of way to keep an eye on your credit report, the most popular ways are through easy-to-use smartphone apps like CreditKarma or directly through the credit bureaus like Equifax or TransUnion.

2. Pay Your Bills On Time

After a bankruptcy, your credit score is most likely at its lowest. One of the best ways to start slowly building it back up is buy paying your bills on time.

Yup. It’s as easy as that.

Just paying your bills on time will have an absolutely HUGE effect on repairing your credit score after bankruptcy.

Why?

Because by paying your bills on time, you will be sending positive signals to your current and future creditors.

3. Start Borrowing ASAP

Even though this advice sounds counterintuitive since you just declared bankruptcy a couple months, weeks or even days ago. Figuring out a way to borrow will help you immensely in your credit score repairing journey.

By borrowing you will start rebuilding the trust with the creditors and, at the same time, improving your credit score.

But be careful, be very cautious when borrowing after a bankruptcy. Create a budget and never borrow more than you can afford to pay back. Don’t repeat the same mistakes twice.

Read more: How Can I Raise My Credit Score By 200 Points In 30 Days?

4. Make Sure That Your Payments Are Processed On Time

It’s not only important to pay your bills on time, but also making sure that your payment is processed on time is actually even more important.

In fact, did you know that when you’re paying your bill 1 day before it’s due (or even on the day of), your payment is usually processed in 24-48 hours! Meaning that you may think that you’re paying the bill on time, but in fact are paying the bill late and, therefore, reducing your credit score and holding you back in your credit repair journey.

5. Increase Your Credit History

Having a long credit history is another characteristic that proves stability and shows trustworthiness to creditors.

Basically, in the future, we strongly recommend not closing any credit accounts right after you’ve finished paying them. This is especially the case for free credit cards, why cancel them if they don’t even cost anything to you?

The longer your credit history is, the better your credit score will be.

6. Never Use Too Much Credit At Once

Did you know that you need to keep a healthy credit utilization rate to send good signals to credit bureaus?

In fact, it’s recommended to keep a credit utilization of 30% (or 35%) or less. Never go above that rate.

But what is a credit utilization rate?

It’s actually very easy, let’s look at the following example to understand the concept a little better:

You have 2 credit cards (500$ each) with a total credit amount of 1000$. To keep a credit utilization rate of 35% or less, you will have to use less than 350$ at once, before paying off the balance.

7. Show Stability To Your Creditors

Creditors absolutely LOVE stability.

Your goal as a borrower is to show that you are a good borrower.

Do your best to pay your bills on time, borrow and pay back what you owe, etc.

8. Diversify Your Credit

Another technique that is used to improve credit score is to diversify the credit that you have. Basically, you need to have more than one item on your credit history, whether it be a credit card, a car loan, a mortgage, a credit line, etc.

Not Enough?

Give us a call and our credit repair specialists will go over your financial situation on a FREE call with you and help you build and develop a solution.

Raising your credit score by 200 points in 30 days is an interesting challenge that almost sounds impossible.

But is it really impossible or just a challenge that is very hard to achieve?

In our opinion, it’s the latter.

What Is A Credit Score?

Before we start diving into the actual question, we need to understand what a credit score is.

A credit score is a number, usually between 300 and 900, that is decided by a credit bureau and helps creditor determine if your “credit worthy”.

The credit score is a result of a mathematical formula that basically quantifies how risky of a customer you are. That number is obtained by an in-depth analysis of your credit history, where the credit bureau stores all of the information related to your loans, credit cards, payment history, employment history, etc.

Basically, every time that you use or pay your credit card, pay a phone bill or take out a loan, a signal is sent to the credit bureaus and this information is added to your credit history.

How Can I Raise My Credit Score By 200 Points In 30 Days?

Here are a couple tricks that you can apply to your finances to raise your credit score by 200 points in 30 days (or more):

1. Pay Your Bills On Time

This is probably the best way that you can get a big jump on your credit score.

Paying your bills on time is a crucial part of your credit score. Why? Because by paying your bills on time, you’re showing to the future creditors that you will pay their invoices as well.

What we recommend to never miss a payment, is setting up automatic payments for your recurring bills and always paying your credit card bills a couple days prior to the due date. If you’re currently paying your credit card statement on the due date, you risk of missing the payment date and incurring interests due to the processing time on your payment.

Read more: Is It Worth Going To A Credit Repair Company?

2. Have A Low Credit Utilization Rate

Credit bureaus take into account your credit utilization when calculating your credit score. Usually, a utilization rate of less than 30% is recommended for the ideal credit score.

By a 30% credit utilization rate, we mean that if you have an open credit of 1000$, you must never use more than 300$ without paying off the balance.

3. Make Sure To Keep An Eye On Your Credit History

Most people never open their credit report, don’t be like those people.

If you never keep an eye on your credit history, you will maybe miss an error that could seriously affect your credit score. We’ve had countless testimonials where Canadians had a mistake on their credit history that was seriously affecting their credit score for years!

You can request your credit history for free from all of the major credit bureaus at least once a year and if you find an error, feel free to contact them and so it can get corrected fast.

4. Do Not Cancel Your Paid Credit Cards

Whenever you finally pay off that credit card that has been holding you back for the past couple of months or years, keep it instead of cancelling it.

The older and lengthier your credit history is, the more creditworthy you seem to future creditors.

5. Increase Your Credit Limit

If you can’t keep up with the 30% credit utilization, you can always increase your credit limit to attain it!

Yes, it’s as easy as that.

Let’s say you currently have a 50% utilization rate with a 500$ credit card, you can reduce that credit utilization rate down to 25% just by increasing your credit card limit to 1000$.

6. Negotiate With Your Creditors

If you know that you won’t be able to pay a bill, contact the creditor as soon as possible and try to find a solution without them reporting the missed payment to a credit bureau. This could save you hundreds of points on your credit score.

Bottom line

Increasing your credit score is hard.

As we learned in this article, there are tons of steps that you need to do before you can even start increasing your credit score.

This is why some Canadians prefer to work with credit repair agencies to help them through those steps. If you’re interested in a completely free call with a credit repair specialist near you, click one of the many buttons on the page to book your free call in less than 20 seconds.

If you have a bad credit score, you probably already considered going to a credit repair company for help.

But is it worth going to a credit repair company for help?

Is it a good idea? Or will the company just pump out monthly fees out of your bank account without helping you at all?

Is It Worth Going To A Credit Repair Company?

The real answer to this question is: it depends on your financial situation.

But usually, if you have a bad credit score and have no idea on how to improve it, credit repair companies are well worth the hassle and the fee.

It’s especially helpful when you have tons of negative items on your credit history negatively affecting your credit score.

When you hire a credit repair company or agency, their job is to investigate, negotiate and dispute negative items on your credit history for you. If you’re feeling overwhelmed by aggressive collections agencies (known to intimidate most people over the phone), having a professional mediator like a credit repair agency will remove the weight of those collection agencies off of your shoulders as well as save you countless hours over the phone.

How Much Can My Credit Score Be Improven With A Credit Repair Company?

It depends on your financial situation, but usually, customers see an increase of around 100 point in their credit score after working with a credit repair company for at least half a year.

One important thing to note is that these results are not a guarantee, it’s just the average result for the average customer. The actual result depends on a multitude of factors.

If you’re interested in figuring out how a credit repair company can help you, we recommend giving a FREE call to the best credit repair company near you by clicking one of the big green buttons on this page.

Are Credit Repair Companies Scams?

No, they are not a scam.

Even though some credit repair companies have a very shady and negative reputations on the internet, most credit repair companies are not scams.

Before giving your business to anyone, yet alone credit repair companies, make sure to read reviews about the company and make sure that the company is accredited in its niche.

How Can I Improve My Credit Score Myself?

1. Do Not Use All Of Your Credit

A credit utilization rate of less than 50% is absolutely crucial to improve your credit score. That means that if you have a total credit of 1000$ available, you should never use more than 500$.

2. Never Miss A Payment

Another good way to increase your credit score fast is to never miss a payment on your bills, credit cards, line of credits, etc. And it doesn’t matter if the amount is big or small, all missed payments affect your credit score, even if you miss a 1$ payment on your credit card.

Never missing a payment means paying before the date limit!

Not the same day.

Why?

Sometimes the payment won’t be processed in time if you pay at the last minute and it will count as a missed payment.

3. Keep Your Old Accounts Open

Sounds counterintuitive no?

But keeping a long credit history is crucial to a good credit score. So if you don’t absolutely need to close an account, don’t! The longer you keep this account, whether it be a credit card or line of credit, the better signals you’ll be sending to your credit history.

Why?

Because showing creditors that you can responsibly use a credit card or any other type of credit for a long time shows them that you’re worthy of borrowing more.

4. Vary The Types Of Loans You Take Out

More loans is bad?

Not always, sometimes having more type of loans is actually better for your credit score!

Having a mix of a car loan, a credit card, a line of credit with a total credit amount of 30 000$ is actually better for your credit score and history than having one credit card with a 30 000$ limit.

Although, you should be very careful when taking out multiple loans, never take out too much debt if you can’t pay it off. The most important thing to improve your credit score is to be financially responsible with debt.