Tempted by a Credit Repair Company in Regina? How to Do Better for Free

Some credit repair companies in Regina 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 Regina 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.

Credit Repair Services, Companies & Agencies – Pay Less Interest & Fees to Fix or Improve Bad Credit

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.

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.

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

Compared to a credit rebuilding loan, a cash secured credit card is a much quicker – and in our experience – a more effective way to improve, restore, or fix your credit score in Canada. A cash secured card requires you to deposit money as security for a card. The cash security that’s needed can be as little as $225 or $350. This card is then just like a normal credit card.

Here are four advantages of a cash secured credit card versus a credit rebuilding loan:

1. A cash secured credit card can give your credit score a much faster and bigger boost than a loan as long as you don’t carry more than just a small balance on your card.
2. It is a lot less expensive than most credit repair loans for two simple reasons: it only has one annual fee, and you aren't required to pay any interest or fees if you completely pay off your balance every month.
3. 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.
4. 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 to Watch Out for & Be Aware of with Debt Relief Programs & Solutions in Regina

Various credit repair companies and agencies, in an effort to make more money from you, also promote certain debt relief programs and services. If you are having trouble paying your bills and making debt payments each month, or if you have some bad debts you need to take care of, then some sort of debt relief option may be a good idea for you. Just be conscious of these three things when looking at debt solutions in Regina:

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.

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 Personal Credit Assistance in Regina to Fix Your Bad Credit Rating

Free Guidance & Information from Non-Profit Agencies Near You

A lot of people aren't aware of this, but some of the most helpful experts on fixing bad credit situations and totally repairing credit ratings are non-profit Credit Counsellors in Regina who offer free, confidential appointments (either over the phone or in person). If you have debts you are having trouble paying or are experiencing financial difficulty, they are the best people to go over your situation with you. Anything you discuss with them is completely confidential. Don’t worry if your situation is really bad. They’ve likely seen far worse, and they are non-judgmental in how they help. Follow this link to locate a non-profit credit counselling service near you.

How to Obtain Free Credit Score & Repair Help in Regina from Your Credit Union, Bank, or Mortgage Broker

To find out about your credit rating, it’s worth asking the lender at your bank or credit union. Maybe you applied for a loan and were declined. Don’t be ashamed; instead, use it as a chance to find out what you can do to get your finances back under control. When a lender turns you down for a loan, line of credit, overdraft, or something else you applied for, they can tell you why. Inquire about anything that isn’t clear. Then ask them to outline what you can do to raise your credit score and credit rating. A mortgage broker can also answer these questions if you applied for a mortgage.

How to Get a Free Copy of Your Credit Report

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.

Save Money & Do It Yourself - Repair, Fix or Improve Your Credit on Your Own

If you are in Regina 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.