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Rebuilding Credit in Puslinch - How Long does it Take?

Rebuilding Credit in Puslinch - How Long does it Take?

We all know that rebuilding credit takes time and effort, but exactly how long and how much effort? How long does it take to rebuild credit in Puslinch?


This is an incredibly common question our auto loans team tackle every day. That makes it a prime candidate for a blog post.


Rebuilding credit in Puslinch


Rebuilding credit is a slow, ponderous process but it’s also predictable and simple to do.


Exactly how long it takes depends entirely on the current credit score and your ability to rebuild it.


For example, it would take much longer to rebuild a credit score of 450 to get it over 650 than it would to rebuild a credit score of 550.


It would also be easier to rebuild if you could manage two credit cards, use them every day and pay off the balances in full each month.


As a general rule, improving your credit score takes between 12-24 months depending on the current score. It takes less time for slightly higher scores and longer for lower scores.


How to rebuild your credit score


We said rebuilding credit is a process and that’s true. It’s a logical, systematic process that we can use to steadily improve your situation.


Here’s how…


Check your credit report


First let’s check your credit report. We need to identify any errors and have those corrected by the credit bureaus. That’s a quick win that could improve your score immediately.


We also need to check your current score so we know where we are starting from.


Create a budget


If you don’t have a household budget, make one. Use a free spreadsheet and use it to collate all your household income and outgoings.


Set a column for all your income and another column for all outgoings. Hopefully, you have something left over once all bills are paid. We’ll use this to help rebuild.


Add a third column and list all your current debts, if any. List them in order of cost, with the highest interest at the top.


Get a credit card


If you don’t already have a credit card, get one. Use a secured credit card if you need to, or a standard card if you can.


Use your credit card for everyday expenses, set up automatic payments to cover the minimum each month and clear the balance at the end of each month. Clearing the card is vital to help avoid accruing more debt.


Set up automatic payments for all outgoings wherever possible. This is the best way to avoid missed payments, which can seriously impact your credit score.


Pay down debt


If you’re carrying debt, pay it down as fast and as steadily as you can. This will reduce your credit utilization ratio if it’s credit card debt and debt to income ratio if it’s something else.


It will take around 3 months to begin seeing improvements in your credit score. Once you’re using and paying credit cards, you’ll begin seeing regular payments on your payment history, which makes up around 35% of your credit score.


It’s a long road but one that’s definitely worth travelling!


An auto loan can also help rebuild credit, so when you’re ready, contact our team.


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


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