Having bad credit isn’t the end of the world and there are plenty of ways to repair it. In this Real Estate 101 episode, Joe Terceira welcomes Tracey Brock of Dominion Lending Centres to talk about repairing bad credit or previous bankruptcy.
What’s the First Thing You Need to Do About Repairing Bad Credit?
There are two options before you if you have bad credit – go to a mortgage broker or go to a traditional bank. Either can help you get rid of this problem, as long as you follow their advice and guidance.
Banks usually offer easier access to credit if your credit score is good. On the other hand, mortgage brokers have the products and the know-how to help someone who has bad credit or simply doesn’t meet all of the bank’s criteria. Mortgage brokers are constantly in touch with credit bureaus and know what can change your credit for the better.
Either way, you can’t go wrong, whatever option you choose of these two. The difference is that they offer different products depending on your credit rating.
When you go to the mortgage broker to discuss repairing your bad credit or previous bankruptcy, the first thing you need to do is acknowledge it. This is nothing to be embarrassed about and mortgage brokers are there to help you with this problem.
Once you acknowledge that you have bad credit, you also need to keep in mind that it will take some time to repair it. This can’t happen over night and there’s no magic solution to it. You’ll just have to work with your broker and be patient about it.
What Can You Do to Repair Your Bad Credit?
There are a couple of things that you can do that will help repair your bad credit. The most important thing to do is to pay your debts and not miss a payment on them. Another thing you should take care of is paying bills on time, as this also affects your credit.
Also, make sure that you are not over the limit on your credit card. That’s 35% of your score and makes the biggest chunk of it. Make sure that you’re not over your limits and are not maxed out. Play it safe and keep the limits below 65% (ideally it should be 50% of the credit available). If you’re going over, ask the lender for an increase on your limit.
In other words – be responsible about your credit.
Watch this episode to learn more about bad credit and how to repair it.
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Joe Terceira / Sales Representative
THE JOE TERCEIRA TEAM
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