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How can you Fix your Credit Score?


The interest paid on Toronto mortgage rates can add up to thousands of dollars over the course of a loan. It is your credit rate that will ultimately determine your mortgage rate. In other words, the higher your score is the lower your interest rate will be.

Banks usually do not indulge customers who apply for credit cards but do not have proper credit scores to back their claim. Needless to say it pays to take some time to fix your credit score especially if you are looking for favorable Toronto mortgage rates. Let’s see how you can fix your credit score-

The Details

This goes without saying. Your first plan of action should be to determine the amount of money you owe. After that, arrange the payments according to importance. This will allow you to pay off major debts at once instead of years.

Pay your Balance

You should focus on paying off any debt as quickly as possible especially if you have a habit of spending 75% or more of your limit on your credit cards. Such indulgences can take a heavy toll on your credit score to say the least. Once you start paying your credit cards to less than 50% of their limit your credit score will improve. In time you will also be entitled to pay less interest.

Late Payments

Any late payments will be displayed as overdue on your credit report thereby making your report look less than savory to lenders.  If you are unable to catch up with a mountain of late payments yourself you can always sit down with your creditors and figure out whether you can come to an agreement. This way you can come up with a payment plan that will be affordable and convenient for you. Best of all, your credit rating will start off with a clean slate once the program is over. Not everyone might be willing to utilize such an option however the fact remains that it does allow you to reestablish your credit much faster than other means.


Some people resort to bankruptcy to fix their credit rating. However such an option must only be considered as a last resort. It also happens to be the slowest way to repair your credit. In fact it also has the potential of negatively impacting you for the next eight to 10 years! If that isn’t enough bankruptcy might not even deal with all of your debts.

One of the most common factors that affect low credit scores is the lack of spending plans. Most potential buyers who do have plans do not bother to follow them. Without a fixed budget you will end up spending more than you earn while your credit score drops.

Not only is a credit rating integral for a home loan in Canada it will determine whether you can get your hands on a loan at all. Therefore it is best that you figure out how you can fix your credit rating before you even think of looking up Toronto mortgage rates.

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