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Post-Pandemic Credit Score Review

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As COVID-19 rates are dropping across the province and Ontario is finally starting to reopen, you may have some concerns about your credit score. Many different industries have been forced to close temporarily (or permanently) due to heavy restrictions. While you may have personally faced some financial hardship, you are not alone.

My Loan is here to provide you with reassurance and tips for your post-pandemic credit score.

1. Get your credit report!

It’s easy! Don’t put off checking your score and report just because you’re nervous. It’s fast and simple. For example, go to Equifax website homepage. From here, you’ll need to enter some personal details and answer a few questions. Although you can also add your Social Security number, this is not a requirement. Once you have added all the necessary information, your free credit score will be back within 10 minutes. There is no need to worry about the unknown. Access your credit information and then go to the next step!

2. Review, Review, Review!

Mistakes happen! 1 in 5 credit reports are said to contain errors.

Mistakes of identity: This could include errors in your personal information such as the misspelling of your name, the completely wrong name, or incorrect contact information such as your address or phone number. Didn’t you open that retail credit card? If you’ve been a victim of identity theft, there may be accounts you haven’t opened. There may also be accounts that belong to someone who has the same name or a name similar to yours.

Duplication errors: Upon closer inspection, you may find that the same debt is listed multiple times. It may be listed with different names or creditors, so be sure to look at all the numbers. This could happen when a lender or lender undergoes the takeover and there is a name change.

Balancing errors: Common mistakes with your balance could be the wrong amount on your balance or the wrong credit limit. The credit limit on a credit card may be reported higher or lower than it actually is.

Account errors: There may be errors in the actual status of your accounts. For example, perhaps an account that should still be open is reported as closed or vice versa. There may also be accounts where you have made payments on time and yet have been reported as overdue or overdue. Another misinformation could be the wrong date when an account was opened or closed, when you made your last payment or when you started being late or not paying your payments. Additionally, you may be listed as an authorized user on an account when you are actually the primary account holder or vice versa.

3. Mistakes? Dispute!

You have the right to challenge any information on your credit report that you think is wrong!

Step 1: Support your case: Collect receipts, statements and other documents related to your credit accounts. You may need them to prove your claim.

Step 2: Contact Credit Bureaus – Both Equifax Canada And TransUnion Canada have modules for correcting errors and updating information. Fill out the form to correct errors:

Before the credit department can change the information on your credit report, they will need to investigate your request. It will verify your complaint with the lender who reported the information. If the lender agrees that there is a mistake, the credit agency will update your credit report. If the lender confirms that the information is correct, the credit department will leave the report unchanged.

4. Focus on Payments!

Maybe you missed a payment during the pandemic because of your financial situation. Life happens and sometimes the payment receipt. Unfortunately, non-payment could have detrimental effects. Paying your bills on time is important for improving your score!

Keep track of due dates in a calendar and set reminders, sign up for automatic payments, or even ask your lender if you can change the due date so it’s available when you get paid. It is much more important to pay the minimum amount than to delay the payment completely.

Also, it is important to review your outstanding debts. Don’t avoid acknowledging what you owe. Establish a realistic budget and timeline for meeting your debts. An easy place to start is your credit cards. Traditionally they charge higher interest rates than other loans in Canada.

5. Focus on the future

If your credit score has gone down and you are nervous about the future, this is normal. However, the best action plan for increasing your post-pandemic credit score is to stay calm, create a plan, and work towards a goal. After you’ve thoroughly reviewed your report and taken all necessary actions to correct the errors, focus on the things that can have a direct impact. Like # 4, create a billing schedule. Take note of all due dates on your invoices. Review and minimize any additional costs you can do without, such as an additional streaming service. Prioritize your payments. Furthermore, there is still the support offered by the Canadian Economic Covid-19 rescue plan.

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If you are having a hard time getting finance because of your credit score (and haven’t had a chance to work long enough on your credit repair plan), why not consider giving us here at self-loan.ca a call? We take into consideration every single question we get and don’t discriminate based on your current score, so you really have nothing to lose by calling us and seeing if there is anything we can come up with to help you with your current situation.

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