• Before making a loan application, order a copy of your credit report and make sure there are no errors. If so, please correct them. A well prepared application, reasonable from the point of view of the credit limit requested and discussed with the agent of your financial institution prior to limit the chances of rejection and avoid a negative note attached to a refusal. Credit bureaus handle millions of transactions per year and errors do frequently.

 

  • Avoid multiple requests for credit from creditors. Refusals are very harmful to your score.Credit Score

 

  • Before meeting with your financial institution, calculate your own debt ratio if it is too high (more than 40%, you may well be refused) and thus negatively affect your score.

 

  • Do not pay your accounts late. Regardless of the amount outstanding is high or not, a delay is a delay.

 

  • Keep your credit card balances and lines of credit low (ideally 25% or less of the balance allowed). This is the percentage that increases your score the most. From 25% to 50%; it increases but less. If your balance is more than 50% of the limit, it negatively affects your score.

 

  • Accounts (credit cards / line of credit / loan) old open accounts are “paying” for your score than newly opened accounts. Keep them open, if possible.

 

  • If you need to reduce your revolving debt, always start first by reducing the amount owed on your credit cards for two reasons: They typically cost you more expensive in interest than other loans and further increase your score if you reduce your auto loan or your mortgage.

 

  • Be wary of ads that promise to repair your credit quickly. Costs that will be required are often very high and there is no magic solution. As for injuries, time and patience are the best remedies to win the trust of your new creditors.

 

  • Apart from the secured credit card, in the first two years of your bankruptcy, avoid loan application to financial institutions that were included in your bankruptcy or proposal. Given their loss, they will be less willing to give you credit again.

 

  • Avoid the traps of revolving debt. You have learned to live without credit for your bankruptcy or proposal. Of course, you’ll need when you change your car or if you buy a house, but keep your borrowing capacity for that rather than for furniture, travel etc… !

 

  • Remember that it is not because a financial institution offers you the revolving debt you must accept it.