Ontario, Canada Sep 12, 2022 (Issuewire.com) - If you’re planning to apply for any type of loan in the near future, or if you just want to build up your credit score, then it’s important to clean up your credit report first. One of the most common mistakes people make when cleaning up their credit reports is simply waiting too long. Luckily, you can fix most errors and remove most accounts that are no longer valid on your credit report with just one visit to Credit Resources. If you want more control over your credit, then it’s time to turbocharge your credit score today.
Settle Debts in Collection
If you have any debts in collections, the very first thing you need to do is settle those debts. After doing so, make sure they are reported as settled with a zero balance. If they are not reported as settled, it may look like you're paying them down and your credit will be negatively impacted. Also, if you ever plan on applying for credit again (such as a car loan or mortgage), this type of debt can still show up on your report and impact your ability to get approved. It's important to understand that while getting rid of bad debt is great, it doesn't always help your credit score.
Build and R1 Rating
If you want to turbocharge your credit score, it's important to remove any errors or outdated accounts from your credit report. Doing so will make it easier for lenders to assess the accuracy of your account information, which can help you get a better loan rate or qualify for additional credit cards with higher limits. Having fewer errors on your report can also reduce what's known as your credit utilization ratio, which is how much available credit you're using when compared to how much is available in total. Doing so can potentially lead to a lower score due to the reduced amount of open lines of credit. So removing old, inactive accounts while also deleting any erroneous information (such as incorrect addresses) can go a long way in helping you meet those personal finance goals quicker.
Media Contact
Credit Resources creditresourcesus@gmail.com (416) 441-5000 95 Moatfield Dr https://creditresources.ca/
