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4 ways to improve your credit after a financial reset

If your credit has been impacted because you’re going through a financial reset, follow these four helpful tips brought to you in collaboration with Capital One.

Not surprisingly, individuals who are working their way through a financial reset are worried about rebuilding credit. Your credit score is a number that assesses a person’s creditworthiness and represents the risk a lender takes when you borrow money. The higher your score, the lower the risk to the lender. Whether you’re 100 or 500 points lower than you once were on your credit score, we’ve got four helpful tips to help boost your credit and rebuild your finances. These tips are brought to you in partnership with Capital One.

  1. Track spending through a monthly budget and identify areas to cut costs on an ongoing basis. This will allow you to keep on top of your payments, and avoid being late, which is an essential ingredient when rebuilding credit.
  2. Get ahead of debt and scrap together those savings to create an emergency fund so you’re better prepared for unexpected events. Building up savings doesn’t happen overnight, but making small changes to the way you spend can make a big difference. The recent Consumer Price Index indicated Canadians are saving approximately $7 per month on gas compared to last year. Those savings can be put towards that emergency fund you’ve been working on.
  3. Ensure you have access to credit, especially for emergency situations. You can establish and repair your credit with a card such as Capital One’s Guaranteed Secured Mastercard. Security funds act as collateral and help demonstrate your commitment to using credit responsibly. Your transactions are reported to the credit bureau unlike debit and prepaid cards.
  4. Take advantage of free credit monitoring tools like Credit Keeper from Capital One, which gives you access to your credit score – for free. Credit Keeper provides users with weekly credit score updates to encourage frequent monitoring for suspicious activity and offers information on open and closed accounts on your credit report.

Repairing credit takes time and discipline. But, the benefits of starting now, to improve your credit, are that you’ll gradually see your score rise. You’ll be offered better credit options (and rates), allowing you to continue to grow your financial plans for the future.