How to Get the Best Credit Repair in Manitoba – a Review of Your Options
There are some companies who are selling costly credit repair services in Manitoba that sadly, often leave people struggling to pay more debt than they started with. Based on how much they charge for these services, it’s likely a lot of people would expect to receive a lot more value than what they actually receive. What’s also surprising is that services like this can possibly make someone’s credit worse if they are unable to make all their payments, and their new credit repair loan is sent to collections. Although this may be unnerving, here is some good news: you can repair and improve your credit score in Manitoba for free – and even get more one-on-one help and better advice than a good number of credit fixing companies provide. Keep on reading, and we’ll tell you how to get this.
Credit Repair Services, Companies & Agencies – There are Cheaper Options to Fix or Improve Bad Credit
Credit repair services aim to assist people in improving their credit score. In Canada, the main way they do this is by granting credit building loans for a fee. The logic behind this is that a new loan will put positive information on someone’s credit report, demonstrating to the credit scoring system that this person can use credit wisely.
While this approach no doubt helps a fair number of people improve their credit score, in our opinion, these companies don’t offer it because it’s the best way to fix or repair bad credit. They offer the loan because it's the most lucrative for them. A credit building loan ensures they can charge you interest and fees over several years. But you need to know something: there is a better, cheaper, and more effective way to improve your credit.
The Fastest & Cheapest Way to Fix, Improve, or Restore Your Credit Score in Manitoba - Use a Cash Secured Credit Card
The faster and better way to fix, improve, or restore your credit score, compared to a credit rebuilding loan, is by getting a cash secured credit card. The way they work is you put down as much money as you would like your credit limit to be. Some cards require as little as $250 or $400 to get you started. They then function as a normal credit card.
Here are the advantages of a cash secured credit card compared to a credit rebuilding loan:
- The cash secured credit card can provide a much quicker and greater boost to your credit than a loan.
- It is far cheaper than most credit repair loans because it only has one annual fee, and you don’t have to pay any interest costs or fees if you pay off your balance in full every month.
- It’s way more affordable because you don’t have to make room in your budget for a monthly loan payment and/or a credit repair company service fee. Instead you just use your card to pay for something that is already in your budget – like gas or your transit pass – and then pay off the card balance in full at the end of the month. This doesn’t cost you anything extra if you were going to buy the gas or transit pass anyway.
- If your income drops and you can’t afford to make your loan payments, your loan would be sent to collections, your credit score would be further damaged, and you would have more stress in your life. With a cash secured credit card, if you don’t use it, then you don’t have to pay anything. If you get laid off, you work less hours, you get injured or you become sick, your credit won’t be impacted right away, and there won’t be any additional problems that missing loan payments could cause.
The bottom line, from our perspective, is that a cash secured credit card is a much better way of giving your credit score a boost and rebuilding your credit. The thing to remember with a cash secured credit card is that you always need to make at least your minimum monthly payment. If you miss a few months of payments, the credit card company will take money from your deposit, pay off what you owe, return any money left over, and then cancel the account. This will show up negatively on your credit report.
Most people think that you have to use a credit card a lot for it to help your rating. That’s not true. It’s okay to use it once every few months for a purchase that doesn’t use more than 50% of your credit limit. Then when the bill comes – and it’s important to wait for it – you pay it off in full.
As your financial situation gets better, you may want to think about increasing your credit limit to somewhere between $1,000 and $2,500. This may mean that you’ll need to increase your cash security deposit but having a larger credit limit like this and not using it will boost your credit score even more.
Here's a government list of most secured credit cards in Canada. Just select your province, press the "Apply" button, and then you can compare the cards. Here's another list with some cards that the government missed on their list.
If you’re scratching your head wondering where you’re going to find the money for a cash secured card or eventually increase your cash security to over $1,000, here are whole lot of ideas to help you find the money you need.
What You Need to Watch Out For with Debt Relief Programs & Solutions in Manitoba
To make more money off of you, some credit repair companies and agencies also promote certain debt relief programs and services. If you are struggling to pay your bills and debt payments each month or have some bad debts you need to deal with, then some sort of debt relief option may be very helpful for you. Just be aware of these three things:
- There are advantages and disadvantages with all debt relief solutions. If there weren’t, everyone would try to sign up for one. What you need to do is weigh the pros and cons for each option and see what will be best for you to live with in the long run. Also, as someone tells you about a debt relief program, watch out if they spend way too much time talking about its positive aspects. If they don’t take almost as much time to tell you about the negatives, move on and find someone who’s more objective and not trying to sell you something.
- If the company representative attempting to sell you a program is on commission, or gets a kick back from you signing an agreement or being referred to another business, they could be focusing more on their own financial interests rather than on what’s best for you. This is often true of businesses that only have a few options to offer you.
- In Canada, there are 5 basic ways to fix, improve, or restore your credit: a debt management program, an orderly payment of debts program, a debt settlement, a consumer proposal, and filing for bankruptcy. Anyone you talk to about getting help with your debts should be explaining all of these options, and what the pros and cons of each would be for you. If you get the feeling that whoever you’re talking to is pushing one particular option on you, it would likely be best to get a second opinion from someone more objective.
Tips to Fix, Improve or Restore Your Credit Score – Do It On Your Own for Free
You don’t need to pay anyone on a weekly, bi-weekly, or monthly basis to help you improve or restore your credit score. We have all of the essential credit score tips that work right here – for free. Take a look. We’ll show you the ways you can fix your credit quickly along with the most effective methods which do, however, take more time. After you’ve done all this, we can then show you how to get an extremely high credit score. If all this isn’t enough for you, if your situation is complex, or if you’d like some specific help and guidance, there are financial experts near you who have expertise in helping people with bad debt – and they’ll typically help you for free!
Where to Get Free One-On-One Credit Help Anywhere in Canada to Fix Your Credit Rating
Free Help and Guidance from Local Non-Profits
One of Canada’s best kept secrets is that some of the most helpful experts for fixing bad credit and completely repairing credit ratings are non-profit Credit Counsellors in Manitoba. They offer no cost, confidential appointments (either in-person or over the phone). If you’re having money trouble or difficulty paying your bills and debts, they are the best people to give you guidance and information about how to get back on track. Whatever you talk to them about is absolutely confidential. Don’t be embarrassed if you think your circumstances are awful. They won’t judge you. They’ve probably seen much worse. Click here to find a local non-profit credit counselling agency in your area.
How to Get Free Credit Repair Advice from Your Bank or Credit Union
The lender at your bank or credit union is a good person to ask about your credit rating. You might have applied for a loan and been turned down. Don’t be embarrassed, but use it as an opportunity to learn what you can do to get your finances back on track. When a lender declines you for a loan, line of credit, overdraft, or something else you applied for, they can tell you why. Ask them to explain anything you don’t understand. Then ask them what you can do, very specifically, to improve your credit score and credit rating. If you’ve applied for a mortgage, ask your mortgage broker these same questions.
Get a Copy of Your Credit Report for Free
If you haven’t yet seen a copy of your credit report and are wondering how bad things really are, you can follow these steps to get a free copy of your credit report. If you want to know what your credit score is, you'll have to pay for that, but either Equifax or TransUnion, the two credit reporting agencies in Canada, would be happy to sell you that information (for $24 and $17). You can also use this tool to estimate your credit score for free. The added value of this tool is that you can play with the questions they ask to get an idea of how changing certain things can improve your credit score. You’re unlikely to get this kind of specific feedback from anywhere else – not even from paid credit repair agencies – and it’s available to you for free.
Save Money & Do It Yourself - Repair, Fix or Improve Your Credit on Your Own
If you are in Manitoba and really are planning to find a credit repair service to help you improve or repair your credit, we truly believe that you would come out ahead if you do it yourself. To begin with, get a free copy of your credit report (only order your score if you really need it because it changes often). Then speak with your banker or a credit counsellor for information and advice. Seriously consider applying for a cash secured credit card if they believe it would help your situation. Finally, follow the suggestions we explain above, as well as what is in the information provided in the resources we link to. Fixing your credit takes time and care to do the right things. Work through what we explain above; not only will you save a lot of money, your credit rating should be rebuilt as quickly as possible.
Winnipeg | Brandon