Before you even seek credit repair Toronto, take the time to learn what each score means. A poor credit score can make it impossible to find a lender who is willing to offer you a mortgage, car loan or even a credit card. Even if you find a willing lender with your poor score, you are likely to pay higher interest rates. The fortunate thing is that you can have your credit card repaired if you take the right steps. You can do this within a short period of time so long as you are really determined to restore your credit.
The time it will take to rebuild your credit will depend on different factors. Credit scores are given on a scale of 300 to 900 points. If you have more than 700 points, you are considered to have a good credit score.
If your credit score is more than 760 points, you are considered to be credit worthy. You are unlikely to be denied a loan due to your credit worthiness. Individuals with such a high credit score are likely to get low interest rates on loans because lenders consider them as low-risk debtors.
At this point, your credit score is still good and you should be able to access different lines of credit from banks and other institutions. You may not get the best rates but they are still going to be lower than what most people with fewer points will be offered. With this score, you should be able to access new credit without issues.
A credit score of more than 600 is what everyone with a bad credit rating is looking to achieve. If you want to reach the 600 mark, you need to start keeping up with payments and reducing your debt level. You can reach 650 points within 3 years if you take steps to improve your credit rating. You can still be approved for credits but the interest rate will be fairly high because you pose a significant risk to lenders.
If your credit score falls anywhere between 300 and 649 points, it’s highly likely that you will not be able to access any lines of credit. This is because lenders consider you as a really high risk borrower. You will have to work your way up by paying bills on time and then wait for your credit score to improve. Sometimes your score may be really low due to errors or misleading information in your report. Make sure you get a copy of your report once annually from reputable credit reporting agencies in order to review the information and ensure there are no errors that negatively impact your credit score.