At Guaranteed Auto Loans, our team works tirelessly to better help everyone get approved, regardless of your credit score, credit history and credit status. Our team’s success for auto loan approvals are at 93.7%. The other 6.3% are based on varying risk factors. Therefore, we’ve introduced some additional services that will better establish everyone that applies for an auto loan! Yes, that’s right. If we can’t get you approved, we’ll set you up on a plan to get you approved, no mater the credit history, credit score and lack of credit period!
Got a Consumer Proposal? A Bankruptcy? How about collections calling more often than your family?
Our services when followed to the letter, will improve your credit score between 100 days to a year. But the catch is that you got to become the embodiment of a responsible person that pays all of your upcoming bills on time or earlier!
How to Improve Your Credit Score?
Everyone should take the time to check their credit score on a yearly basis. If not, don’t be surprised at you credit limitations. Credit limitations can affect your ability to borrow money or access products such as credit cards, or loans. You can check your score for free with Equifax and Trans Union on a yearly basis. Just write them a letter requesting your credit report and expect a printed copy in the mail within a month. It might not be as up to date as having an account with either of them, but at least you can easily see where you stand. If your credit isn’t in the best shape, we have plenty of credit building services that will improve it. If you’ve taken the time to fill out one of our credit applications, we’ll show you varying plans to improve your credit score within 1 or 2 business days.
What is a credit score?
It’s created from information held in your credit report, also known as your credit file.
Your credit score can differ between lenders or even between different products from the same lender, depending on the criteria used in assessing you as a potential customer.
The information held on your credit file and your credit application might be used to decide:
- Whether to lend to you,
- How much to let you borrow,
- And how much interest to charge you.
The most recent information on your credit file will have the most impact, as lenders will be most interested in your current financial situation.
If your credit report shows a few missed payments, you might be charged higher interest rates by lenders or might not be eligible for some loans without a co-signer or at least a down payment varying from 30-50%.
This is because lenders believe they might be taking a higher risk when lending to you.
Your credit history can affect your ability to get things such as insurance, a phone plan, a rental home, or something as simple as getting an internet provider.
Checking your credit file at least once a year would be a great idea, as it can help you spot any fraudulent activity or mistakes on your report.
How to check my credit score?
You can contact both Equifax and Trans Union by mailing them a request for your once a year free credit report. It might be a month old, but it does have detailed documentation of your entire credit file. Or you can subscribe with us to get our Artificial Intelligent (AI) Credit Report Subscription at $24.95 a month. Month 1, month 6, and month 12 are free.
Our AI Credit Report will guide you specifically to create a custom plan to better improve your credit file. From the varying trade lines you have in your credit file to custom suggestions as to how to improve your current credit status.
What are Trade Lines?
Trade lines are a record of activity for any type of credit extended to a borrower and reported to a credit reporting agency.
There are 4 types of Trade lines that are in a credit file varying from:
- Revolving Credit(s),
- Open Credit(s) and
- Installment Credit(s).
Positive Trade Lines are one of the 4 list above that your payments are on-time or paid early.
Verses Negative Trade Lines are the 4 listed above where payments are late.
What Information are in a Credit Report?
Equifax and Trans Union hold slightly different information about your credit file, so it’s worth checking them both. But both of them rate your credit score from 300 to 900 points. General Information listed in your credit file are listed below:
- Name, address and date of birth.
- Some search footprints on your file called Inquiries, such as credit applications.
- Financial links to other people – for example, a joint loan or bank account.
- Any late/missed payments or defaults.
- How much money you owe to lenders.
- History of credit inquiries.
- History of collections.
- Any past due legal fees,
- Government Loans,
- Child Support,
- and the varying types of Consumer Proposals.
It won’t include the following information:
- Your salary,
- Medical history,
- Parking or Driving Fines, but it will include past debt owing to tickets to the Province
However, you might be asked for the above information when applying for a loan or contract. They might then choose to use this information alongside your credit report to assess how viable you are as a potential customer.
What is a Good Credit Score?
Different lenders have their own standards for rating credit scores.
However, if you have a good score with one of the main credit reporting agencies, it’s more than likely you’ll have a good credit score with your lender.
300-550 Poor Credit
620-680 Acceptable Credit
680-740 Good Credit
740-850 Excellent Credit
850-900 Perfect Credit
But remember: your credit score doesn’t guarantee that you’ll be approved for credit or offered the lowest interest rates, because of Trade Lines or lack there of any Positive Trade Lines.
This is because a lender’s decision is not made solely on you Credit Score. It’s based on your Credit File having at least 2 to 4 positive trade lines and that you are making your payment earlier that their due date or just on time. While other lenders can see your credit history from your past as far back as 7 years and may determine if you’ve been struggling or improving your credit score.
Credit Score Losses & Gains
There are many more ways to lose points off your credit file than to gain or maintain a higher credit score.
Having been a customer for a phone provider, hydro electricity, an internet provide or even the fuel and gas company year after year and paying your bills on time will never increase your credit score. But as soon as you miss a payment, or have a late payment, expect a credit loss varying from 15 to 35 points each month.
Each time you apply for credit you will lose anywhere from 5 to 15 points. Therefore don’t apply for credit at varying places at once or expect more disappointments as your credit score gets reduced one after the other credit inquiry. Limit your credit inquires to a maximum of 1 credit pull every 3-4 months, to a maximum of 3x a year just stretched apart as far as possible.
Always know your credit score prior to applying for any type of credit.
How Long Will it Take to Improve My Credit Score?
In general, when making all your bill payments on time or early, it can be as simple as adding 1 positive trade line to your credit file every 4-5 months, with a typical score improvement ranging between 50 to 100 points every 100 days.
The longer the bill goes unpaid, the greater the likely impact on your credit score. Keep a close eye on your credit score to help spot issues.
Most negative marks on file, will remain on your file for at least six to seven years, such as late utility bills, also known as Open Credit. As for all the other months you paid your phone bill on time or earlier does nothing to build your credit.
However, we offer several solutions with some excellent services that have proven results with the following products listed below:
- Secure Credit Card.
- Secure Savings Loan.
- and Mortgages.
How Can I Improve My Credit Score?
If you have a low credit rating, rest assured there are several things you can do to start improving your score today:
- Setup an appointment with us by filling out the detailed form below so that we can customize an affordable program that you will see incredible growth to your credit file. If you follow our guidelines exclusively for at least 6 months to a year, we’ve seen many of our customers improve their credit score in just 100 days and lower their interest rates within 6 to 12 months.
- Sign up to a new positive trade every 4-5 months.
- Pay all your bills earlier than on-time.
- Never utilize more than 30% of any type of credit: credit card, line of credit or personal loan.
- Set a plan to increase your payments by 10% to 200% to reduce the interest rate and therefore paying it off sooner.
As soon as you subscribe to one of our credit building programs, we’ll follow up with you every 3-4 months, so that you can reach your short term and long term credit building goals.
Again, just a friendly reminder to check for mistakes on your file: even having just a slightly wrong address can have an impact on your score. So, make sure you check all the details and report any incorrect information immediately.
Pay your bills on time: paying a bill on time like a phone bill or internet contract, is a great way to prove to lenders that you’re capable to managing finances effectively.
Check if you’re linked to another person: as having a spouse, friend or family member’s credit rating linked to yours through a joint account, could affect your personal rating if they have a poor score. If there are discrepancies, call them and dispute it right-away!
Until then, let’s work together to get you into a better credit score as soon as possible, by thoroughly filling our credit building application!