Canada’s delinquency rate is falling, according to one of the country’s credit agencies. Equifax Canada said the rate — defined as missing three or more consecutive payments on debt obligations— dropped by 7.6% from the previous year, according to the agency’s Q1, 2012 National Credit Trends Report.
The national delinquency rate is now 3.04% which means 738,526 Canadians are falling behind on their payments.
“Almost three-quarters of a million Canadians now have the opportunity to improve their creditworthiness as the economy improves,” says Nadim Abdo, vice-president of consulting and analytical services with Equifax Canada.
Equifax has outlined some steps to reestablish your credit rating.
• Start small. Try a credit card with a department stores or your local credit union.
• Ask for help. Get a family member or fried to co-sign for a loan.
• Consider a secured card. They are guaranteed by a deposit you make with the credit grantor but offer purchasing power of a major credit card.
• Use new accounts in moderation. Make payments for more than the minimum amount owed and make them on time. Keep a small balance on your new accounts so that your positive payment history will continue to show up on your credit report.
• Keep balances low. Avoid carrying a balance of more than 30% of your credit limit. Lenders may view this as excessive debt with which you may not be able to stay current.
• Reduce household spending. Review your household expenses and determine which ones you could do without. Consider creating a budget to track exactly where your money goes each month.
• Call lenders. Explain the situation. Some lenders will work out a plan for you to pay back what you owe.
• Contact a reputable credit counseling agency. But beware of agencies that offer a quick fix.
• Monitor your progress. Check to see if your rating has improved. This can be done for a fee on a regular basis or for free through the mail.
No comments:
Post a Comment