Better Credit will always result in a total lowered total cost of borrowing.
Did you know, the difference between having good credit and bad credit could be almost $8,000 on a $10,000 cash loan. That $20,000 car loan you'll be paying almost $4,000 more in interest!! Can you afford to be throwing away that kind of money?
Don't let bad credit be the reason you can't qualify for low-interest financial products.
Fast Cash Canada’s Credit Rehab Program is an innovative method in credit building in Canada, with a program specifically designed to build credit (and your savings) quickly and easily!
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Are you tired of having your loans declined?
Try to determine WHY your application was denied to begin with.
Step 1. Find out why your loan application was denied.
This is most easily achieved by obtaining your credit report. You can do this for free, once per year from each credit bureau in Canada. Your credit report should make it pretty clear why you’re not getting approved for loans or other forms of credit. It could be a delinquent account listed on your report, or perhaps too many recent late payments on one of your other accounts. Perhaps you have something in collections that you weren’t aware of or maybe there is evidence of fraud on your report. Maybe you just have a low credit score. Whatever it is, you won’t find out unless you look at your report.
This seems like common sense, but you’d be amazed how many people have no idea they have poor credit. There are lots of people who have a tendency to avoid checking their credit, perhaps because deep down, some part of them knows they won’t like what they see. However, as a Canadian, you are entitled to a free credit report every year from each credit bureau in Canada and it is good, sound financial practice to take advantage of that. The first time you look, it may be worse than you thought, but seeing it right there in black ink is going to kick you into high gear to work towards bettering your credit.
While it’s true you can get a credit card with no credit, as this is how many young adults begin their borrowing career, getting a loan is an entirely different ball-game. If you’ve never borrowed before, or haven’t in a long time, chances are you have no credit score. That’s because the credit bureaus have nothing to judge your credit habits by. Start building credit today by clicking here!
Bankruptcy & Consumer Proposal
If you’ve declared bankruptcy within the last seven years, chances are, that’s why you’re being denied for a loan. The only way to deal with this is to wait it out. (or kickstart your credit re-building here)
We cannot stress enough the importance of making all of your payments ON TIME!!!
A derogatory note on your credit report is simply a late payment.
Late payments can stay on your credit report for a duration of up to six years!. It is so critical to make all your payments on time! If you have multiple late payments showing up on your credit report, you’re likely going to come up against some greater scrutiny and higher interest rates when borrowing money.
Debt-to-Income Ratio (DTI)
Your DTI is your debt-to-income ratio. How much you make, versus how much you owe. To be considered low risk for lending, your DTI should be around 43%. If your DTI is too high, potential lenders see that as a hazard sign; they can’t be sure you’re going to be able to make new payments for a new credit product on top of the ones you already have. There is only one way to lower your DTI - paying down your debts or getting a huge boost in income.
You don’t make enough money
Every lender needs to see that you earn enough to pay them back.
If a lender sees on your credit report that you’ve been applying everywhere for credit, it looks like you might be trying to get credit out of desperation. It makes lending to you riskier and leads potential lenders to think you may not be able to pay back the funds you borrow.
Credit Report Errors
You might be unpleasantly surprised to find out just how common it is for Canadians to find errors on their credit report. These can include anything from a misunderstanding with a previous lender, to identity theft. Again, the best way to prevent this from happening, or fix it as soon as it does, is to stay on top of what your credit report says. The best way to fix these errors, is by contacting the lender with whom there is an issue.
Accounts in collections
Whatever the reason is, when an account you owe on owe goes to collections, your chances of being approved for further credit are impacted severely. If you feel something has been sent to collections in error, you absolutely must get that cleared up before you apply for a loan.
You didn’t fill out the paperwork properly
This is a much easier fix than the rest of the reasons why you might get turned down for a loan. Just go over your application with a fine-toothed comb and you might spot an error.
Lenders want to see a history of stable income, so that they feel confident that your current job isn’t going to end, abruptly limiting your ability to pay back what you borrowed. If you’ve just started a new job, it might have been taken into account for your loan denial.
Step 2. Take the necessary steps to fix the issues you found on your credit report.
If there’s an error, be sure to contact the institution who made the error and have it fixed ASAP. Ensure you report any sign of identity theft or fraud to the police or lenders which it would affect. If you find out that maybe you don’t have enough credit, start building your credit profile up a little bit with secured credit products like a secured credit card or a secured savings loan. If the problem you’ve pinpointed is that your credit usage percentage is way too high, then work towards paying down your debt.
Step 3. Rebuild your credit
Unfortunately, this task is much more complicated than just making your payments on time, although that’s a fantastic start. Your credit score is so much more than whether or not you make payments on time. Want to kick-start your credit repair? CLICK HERE.
Try to lower your credit usage percentage to below 30% - that’s only 30% of all the credit you have being used. You also want to ensure you make payments on time and in full every month. Paying your credit card bills with more than the minimum payment is going to get that credit score up even faster. The more you pay, the faster your credit score will rise.
Step 4. Find the right loan provider for you
Consider the terms of your loan as well as the interest rate. If you’re looking at getting a loan from an institution that boasts high approval rates no matter your credit score, be skeptical. Consider the ultimate cost of the loan - how much more than the principal will you have to pay in the long run and what are the monthly payments? (We make it easier for you to get a loan)
Click here to start on the fast track to credit recovery.
Follow the aforementioned steps and you will help increase your chances to get approval for the loan you’re looking for. To increase those chances, even more, make sure you’re diversifying your credit products - you want to have a mix of revolving credit (credit cards, lines of credit) and installment accounts (loans, mortgages, Fast Cash Canada Loans, )
As a consumer in Canada, you've probably had your credit report checked a time or two. Perhaps you had applied for a new credit card, or purchased your first home, or even leased/ purchased a car.
We all know that when we seek new forms of credit, our credit report is often reviewed and assessed. Don’t be surprised when a credit card issuer or mortgage provider checks your credit report… since they need to know how risky of a client you are.
But did you know that there are other entities who can check your credit report, even if they are not considering lending to you? In the information age, your credit history follows you wherever you go and is something can have a profound impact on your life. So, when are companies able to run a credit check against you?
First, can they run a credit check without your consent?
Unfortunately, the answer is yes. If you enter into a business relationship with a company, it’s typically taken as implied consent for them to check your credit report.
Some companies may also pre-screen your credit score to “pre-approve” you for credit, although these are not counted as hard credit checks and will not have an impact on your credit report.
Hard vs. Soft Look
A credit inquiry is when a potential lender checks your credit report to determine the level of risk you are as a borrower. An important aspect to remember when it comes to soft and hard credit report inquiries is that soft pulls do not negatively impact your score, whereas a hard inquiry will. Only hard inquiries are listed on your credit report and are available for potential lenders to see.
So, who can pull your credit report?
Landlords and Realtors
You've finally found the perfect apartment to rent. You go to fill out the application when you notice that they are requesting to see your credit information. This practice is becoming more and more popular nowadays as landlords use your credit information to screen for potentially troublesome tenants. Realtors can also check your credit report. These count only as soft inquiries.
Employers can ask to obtain your credit information when you are applying for a new job. The rationalization is that someone with poor credit might be an irresponsible type of person. It indicates a lack of reliability to employers, which is yet another reason it's so important to build and maintain your credit score. Your next job could depend on it! This type of credit check is a soft inquiry.
If you apply for a new policy, your insurance provider might ask if they can see your credit information. A poor credit score can indicate you might not pay your premiums on time. An insurer may also check your credit report to determine if you qualify for potential discounts on your insurance. These are also soft inquiries.
Different government agencies may access your credit information for various reasons. Perhaps they need information to locate you, or maybe it's part of an investigation. Your credit score can also determine whether or not you are eligible for certain government assistance programs and benefits. Believe it or not, the government can and does access credit information in Canada. it is a soft inquiry.
Debt collectors can perform credit pulls as they have essentially bought your debt and need to know the risks that go along with their purchases. These are soft inquiries.
You may get a soft credit check when you're signing up for your new internet provider or a new wireless phone line. Utility companies use this information to determine whether or not you pay your bills on time. If you struggle poor credit, you might have to put down a deposit first before they open your new account.
Anyone with a Court Order
Although very uncommon, court orders can be issued to obtain someone's credit information, providing they make a good enough case for it being necessary, however it's a soft inquiry.
Banks can check your credit report when you apply for any lending product such as a mortgage, loan or a line of credit. These checks are hard inquiries. Banks can also check your credit score from time to time throughout your relationship so they can know what products to offer you. These are soft inquiries.
Credit checks from lenders are hard inquiries because they are usually the result of you applying for a loan.
Car dealers can check your credit report if you’re working out financing options with them. These are hard inquiries to approve you for financing.
As you can see, a poor credit score can affect you in so many ways. The simple act of cleaning up your credit report can have an enormous impact on almost every aspect of your life. If you need to improve your credit score, don't wait any longer. Just get it done! We have one of the easiest ways to improve your credit score: the self savings loan!