Review All of Your Options to Get the Best Credit Repair Help in Hamilton
There are some companies who are selling costly credit repair services in Hamilton 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 Hamilton 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 – Pay Less Interest & Fees to Fix or Improve Bad Credit
The goal of credit repair companies and services is to help people improve their credit score – often claiming to be able to improve it quickly. The way many of them appear to do this in Canada is by offering credit building loans. The idea is that this loan will create some new good credit on your credit report and show the credit scoring system that credit is available to you and that you are using it responsibly.
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.
Advantages of a Cash Secured Credit Card Versus Credit Building Loan to Improve, Restore or Fix Your 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.
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 far more affordable because you don’t have to fit a credit repair company service fee and/or monthly loan payment into your budget. Instead, you simply use your card to pay for something that's already included in your budget – something like gas for your vehicle or a transit pass. You then completely pay off the card balance when you receive the bill. This doesn’t end up costing you anything extra since you were planning to purchase the gas or transit pass anyway.
- With a loan, if you get injured or become sick, if your hours at work are reduced, if you get laid off, or if your income drops and you can no longer manage to pay your monthly loan payments, then your loan would likely be sent to collections. Your credit score would again be damaged, and you'd probably experience more stress in your life. With a cash secured credit card, on the other hand, if you don’t choose to buy anything with it, then you don’t have to make a monthly payment. Even if your life hits a bumpy patch of road, your credit should still continue to grow stronger, and you shouldn't experience any of the problems that a credit rebuilding loan would likely 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.
The credit limit on your secured card should be something reasonable that you can afford. If your income is very low, a limit of a few hundred dollars can work. However, if you can afford it, a higher limit of $1,000 to $2,500, will probably help you move your credit score up faster and higher.
Here is a government list with a lot of secured credit cards in Canada. To narrow down the list, choose your province, press the "Apply" button, and compare the cards. Here are some more cards that were missed on the government list.
If you are trying to figure out where you’re going to find the money for a cash secured card, here are some great ideas of where you can possibly get some.
What You Need to Watch Out For
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.
- There is always more than one way to fix, improve, or restore your credit, and when it comes to debt relief options, there are five of them in Canada (debt management program, orderly payment of debts program, debt settlement, consumer proposal, and bankruptcy). So if you get the sense that the person or company you are dealing with isn’t exploring all your options with you or is favoring one over the others (or isn’t even mentioning the others), then you may want to look for a second opinion with someone who will more objectively discuss the pros and cons of all your options with you.
Top Credit Score Tips to Improve, Restore, or Fix Your Credit – How to Do It Yourself 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 Individual Credit Help in Hamilton to Fix Your Bad Credit Rating
Free Advice and Guidance from Non-Profits in Your Area
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 Hamilton. 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 have never seen your credit report and are curious to find out how bad things really are, you can obtain a free copy of your credit report by following these steps. To get your credit score, you’ll have to pay a fee of about $15 - $30 to either Equifax or TransUnion, the two credit reporting agencies in Canada. This tool can estimate your credit score for free. This tool also lets you adjust your answers to the questions they ask, giving you an idea of how changing certain things can increase your score. This kind of specific feedback is hard to get anywhere else, and certainly not from paid credit repair companies, if you can find it at all – and it’s available to you for free.
To Sum It Up - Save Your Money, Repair & Improve Your Credit Yourself
If you are in Hamilton 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.