Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Understanding Your Credit Rating | Hoyes Michalos & Associates

1,083 views

Published on

Your credit rating is a score assigned to you that indicates your ability to fulfill your financial obligations, based on your credit history. After bankruptcy, your credit rating is poor, but it is possible to improve it.

Published in: Economy & Finance, Business
  • Be the first to comment

Understanding Your Credit Rating | Hoyes Michalos & Associates

  1. 1. Understanding Your Credit Rating What you need to know www.hoyes.com
  2. 2. Table of Contents What is a Credit Rating? Take Charge of Your Credit Rating How to Build a Healthy Credit Rating The Best Advice 3 8 15 2 4
  3. 3. What is a Credit Rating? Your credit rating is a score assigned to you that indicates your ability to fulfill your financial obligations, based on your credit history. After bankruptcy, your credit rating is poor, but it is possible to improve it. 3
  4. 4. Negative marks on your credit report can include: • Late payments • Collections • Liens & Judgments • Bankruptcy, Proposals & Debt Arrangements Taking charge of your credit rating can help restore it sooner. 4 Take Charge of Your Credit Rating
  5. 5. #1: Get a Copy of Your Credit Report 5 Find out what is on it. You cannot start addressing the problems if you don’t know what they are. Make sure that all the information on your credit report is accurate and up to date. Take Charge
  6. 6. Paying your debts is the most effective way to repair your credit record. Always ensure that you make payments regularly and on time. This will help you build a credit record that is attractive to creditors. 6 #2: Pay Your Bills Take Charge
  7. 7. 7 #3: Look at Debt Management Options Take Charge Improving your credit rating will be challenging if you have more debt than you can repay. Consider your options including: • a consumer proposal and • as a last resort, bankruptcy. Eliminate your debt so you can have a fresh start.
  8. 8. Follow these simple steps to repair your credit. 8 How to Build a Healthy Credit Rating It is possible to restore your credit even after filing bankruptcy or a consumer proposal.
  9. 9. Paying your debts in full and on time shows that you are a good credit risk. 9 How to Build a Healthy Credit Rating Pay all bills on time
  10. 10. 10 If there are errors, contact the reporting agency and have them corrected. How to Build a Healthy Credit Rating Get a copy of your credit report
  11. 11. 11 Savings don’t get reported on your credit report but do improve your finances and provide a down payment. How to Build a Healthy Credit Rating Open a savings account and use it only for savings and emergency funds
  12. 12. 12 Rebuild your credit with small loans at first. How to Build a Healthy Credit Rating Consider getting a secured credit card
  13. 13. 13 How to Build a Healthy Credit Rating Multiple applications can lower your credit score. Apply for only one secured credit card
  14. 14. 14 How to Build a Healthy Credit Rating Keep your interest costs low. Delayed payments lower your credit rating. Use credit wisely and always pay the full balance on time
  15. 15. The Best Advice? • Pay your bills on time. • Don’t bounce any cheques. • Don’t overdraw your account at the bank (even if you have overdraft protection). Show the credit system that you are a responsible money manager and that when you borrow money, it’s because you want to, not because you have to. In this way you will repair your credit and avoid a bad credit report in the future. 15
  16. 16. There is hope. You can be debt free. Read: How to Repair Your Bad Credit Report Or give us a call at 310-PLAN

×