Free Credit Repair Tips – How To Get Back On Track
Life in Canada can get pretty expensive. Especially if you live in Toronto, Vancouver and Alberta. With that skyrocketing cost of living comes financial troubles that can lead to payment problems and before you know it, you’re searching for free credit repair to get yourself out.
There are a lot of firms out there that will charge you a mint to give you credit counseling. We don’t believe in that. If you’re looking for free credit repair, chances are you need to hold on to every dime you’ve got.
So what we’re going to do in this post is give you the tips you need to breathe new life into your credit rating and enjoy more avenues for future credit.
Free Credit Repair Tip #1 – Install a Spending Tracker On Your Phone
Most Canadians have no idea how much it is they actually spend until they’re forced to look at their trail of purchases. One of the most popular apps out there is free and aptly called “Spending Tracker” and it’s available for both the iOS and Android.
Just make sure you log every purchase, even that $2 coffee on the way to work and then review at the end of the month. You’ll be pretty shocked at some of the areas where you were spending the most money without even realizing it.
Free Credit Repair Tip #2 – Pay your smallest debts off first
Let’s say you have several credit cards. You owe a balance of $500 on the first one, $850 on the second and $1200 on the third. Paying off the $500 first while making minimum payments on the others is the way to go.
The point of this is to eliminate the smallest debt right away so that you no longer pay interest on it and then use the minimum payments you were making on that $500 balance and apply it to your next biggest debt along with the minimum monthly payment you’ve been making the whole time.
This is the most effective way to conquer a larger debt as each time you crush a smaller one, you add a new monthly payment to your repayment power. By the time you get to that largest debt (the $1200 balance) you now have two monthly payments combined with a third.
Free Credit Repair Tip #3 – Automate your bills to your credit card
Since your phone company and other utilities providers also want to be paid on time, this is where you take advantage of the headway you’re gaining with those credit cards you’re paying off.
Arrange for all of your providers to take automatic payment from your credit card and then immediately repay the charge. By doing this, you’re showing excellent timely payment behavior for both your bills and your credit cards and that will give your credit score a nice positive boost.
Free Credit Repair Tip #4 – Do Consider A Debt Consolidation Loan
If you feel like you have too many debts to juggle and some of the interest rates on those debts are on the high side, do consider a debt consolidation loan. How it’ll help is that you can instantly pay off all of your debts in one shot.
Then, after that’s been taken care of, you only have to pay one bill each month and in a lot of cases, that loan carries a lower interest rate than your cards and gives you an additional break.
If you’d like more information on how LoanAway can help you with a debt consolidation loan (as well as more free credit repair advice), don’t hesitate to reach out to one of our loan specialists.