Review All of Your Options to Get the Best Credit Repair Help in Halifax

Some credit repair companies in Halifax are trying to sell expensive services that often saddle people with more debt and don't provide many with the value they'd expect to receive. On top of this, when some people aren't able to make the payments on their new credit repair loan, the credit repair company can send the loan to collections which puts these people in jeopardy of having worse credit than when they signed up for the program. While this may be unsettling, there is some good news. In Halifax you can repair and improve your credit for free – and often get better advice and more one-on-one help than a lot of credit fixing companies provide. Keep reading and we’ll show you how to do this.

How to Fix & Repair Bad Credit for Less Than Credit Repair Companies, Services, & Agencies

The goal of credit repair services is to help each of their customers improve his or her credit score. The primary way many of them do this in Canada is by providing credit building loans. The idea is that this loan will create some new good information on someone’s credit report, which shows the credit scoring system that this person is able to borrow responsibly.

This method likely helps a good number of Canadians boost their credit score, however in our minds, it’s a much too expensive option for a lot of people. The credit building loan allows the credit repair companies to charge interest and fees for their service every month over several years. But we believe there is a better solution that is cheaper and more effective.

Why to Use a Cash Secured Credit Card to Fix, Improve or Restore Your Credit Score

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.

Cash secured credit cards have a number of advantages over credit rebuilding loans. Here are four of the biggest:

1. As a revolving type of credit, a cash secured card will improve your score faster than a loan as long as you don’t carry balance equal to half of your credit limit or greater.
2. Most credit repair loans have fees and interest that you pay monthly with your payment. A secured credit card only has one yearly fee, and you don’t have to pay any interest if you pay off what you owe every month in full.
3. 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.
4. 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 finances improve, you may also want to consider increasing your credit limit to between $1,000 and $2,500. This may require a larger cash security deposit from you, but having more credit available to you and not using it will increase your credit score even more.

Here is a government list of a bunch of secured credit cards. Just select your province and then you can compare the cards. Here is another list with a few more cards that aren't included on the government's list.

If you’re wondering where you’re going to get the money for the cash security on a card, here are a whole bunch of ideas of places where you could possibly find the money.

What You Need to Watch Out For with Debt Relief Programs & Solutions in Halifax

Some credit repair agencies will try to promote specific debt relief services and programs to you. Credit repair companies want to earn money, and while there’s technically nothing wrong with a company wanting to earn as much as possible, how they go about doing this is important. If you have bad debts you’re having difficulty paying, a debt relief option might be a good solution for you. So to help you figure out what debt solution in Halifax might be best for you, here are three things to be aware of:

1. Every debt relief option (there are 5 of them in Canada) has as many disadvantages as it has advantages. If they didn’t, then everyone would be signing up for one of these programs. The key is to find the debt relief option with the right advantages for you and disadvantages that you can live with. Beware of anyone who pitches a debt relief program to you and focuses too much on the positives and doesn’t spend much time making you aware of the negative aspects of the program.
2. If the person trying to sell you a program earns commission off of you signing up for the program, then they may have their financial best interests at heart and not yours. The fewer options their company offers, the more often this will be true.
3. In Canada, there is always more than one way to improve, restore, or fix your credit, and when you look at debt relief options, there are as many as 5 of them depending on your province: the debt management program, orderly payment of debts program, a debt settlement, a consumer proposal, and going bankrupt. So if you're left with the impression that the person or company you are working with isn’t fully exploring all of your options with you or is promoting a particular one over the others (or isn’t even saying much about the others), then you'll probably want to get a second opinion from a professional who will be more objective in discussing the advantages and disadvantages of all your options with you.

Tips to Fix, Improve or Restore Your Credit Score – Do It On Your Own for Free

Paying someone to help you rebuild or improve your credit score is not necessary. We have all of the top credit score tips that actually work right here – completely for free. Take a look. We’ll show you how you can fix your credit fast along with the most effective ways that take more time. Once you’re done with all this, we can then show you how to achieve a super high credit score. If this all seems a bit complicated, your circumstances are unique, or you’d like some personal advice and guidance, there are financial experts in your area who have experience helping people with bad debt – and their help is usually free!

Where to Get Free Personal Credit Assistance in Halifax to Fix Your Bad Credit Rating

Free Guidance & Information from Non-Profit Agencies Near You

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 Halifax. 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 Obtain Free Credit Score & Repair Help in Halifax from Your Credit Union, Bank, or Mortgage Broker

The lender at your financial institution, or the mortgage broker if you applied for a mortgage, is a good person to talk to about your credit rating. You might have been declined for a loan. Instead of being embarrassed, use it as an opportunity to figure out how you can best get your financial situation back on track. If you get declined for something you’ve applied for, e.g. a loan, line of credit, or mortgage, the lender is allowed to tell you why. And if the explanation doesn’t make sense, get them to explain it again. Finally, ask them what you should do to get a better credit score and overall credit rating so that you’re not declined next time.

How to 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 Your Money, Fix or Do Your Credit Repair Yourself – That’s What it Comes Down To

If you are in Halifax 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.