880 Walkers Line, Burlington, ON, L7N 2G2, Canada

How To Increase Credit Score Quickly In Mississauga

How To Increase Credit Score Quickly In Mississauga

We can’t all enjoy a spotless credit history and high credit score. Often, through no fault of our own, life gets in the way. We lose a job, lose a loved one, get sick, suffer COVID or something else entirely. For those times, any boost to our credit score is a bonus. We know of one trick that could increase credit score quickly. Want to know what it is?


Mississauga auto loans and credit scores


The higher your credit score, the better the Mississauga auto loan rate. If you’re planning any kind of borrowing in the near future, it makes sense to prepare the way by boosting your credit score.


The higher the score, the lower the interest you’ll pay. That’s a benefit that could save you hundreds of dollars over the loan term!


Plus, your credit score can impact where you live, where you work, the car you drive and even the type of small business you could start if you were planning one.

So, what’s the trick?


How To Increase Credit Score Quickly


The trick to boosting your credit score is to use a secured credit card. They work differently to a credit builder card and can have more of an effect.


A secured credit card is a niche product that is ideal for rebuilding credit. It works like a regular credit card except you pay a security deposit to the credit card company to guarantee the card.


If you default, you lose payment amount from the deposit.


If you maintain payments, you get the deposit back when you close the account.


The amount of deposit you’ll need varied but it typically equal to the spending limit. If you apply for a card with a spending limit of $1,000, you’ll need to pay a deposit of $1,000. Some cards require slightly more but most will want around the same amount as the card limit.


How secured credit cards help your credit score


Many secured credit cards are available for those with low or no credit. The application requirement is minimal and almost anyone with any credit score can get one.


As long as you have the cash to put down as a security deposit, you should be fine.


Many secured credit cards also charge modest fees and reasonable interest too.


We would recommend treating it like any other credit card though. That means using it for regular expenses and paying it off in full every month to avoid interest. This is exactly the same advice we give everyone around managing credit cards so is no different here.


So how does a secured credit card help your credit score?


Use the card regularly, always make the payments and you create a positive payment history. Do this for 6 months or more and you will see your credit score increase by 100 points or more.


That’s assuming you don’t have anything else going on that could impact the score like missing other debt payments, bankruptcy or court proceedings.


If you’re planning to get a Mississauga auto loan in the near future, you could pave the way with a secured credit card. It could mean the difference between having to use a bad credit car loan and a standard loan so it’s well worth it!


We will use all our skill and experience to deliver the lowest possible Mississauga car loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!

Categories: Auto Loan

Tags: , ,