So you know you have poor credit. It’s not the end of the world! Below you will find three ways to “fix” your credit score fast.

There are three common issues that are the likely cause of your poor credit score. These are:

  1. You consistently borrow/owe more than 75% of your total credit limit,
  2. You have collections reporting on the public sections of your credit report, and
  3. Negative information older than seven years may still be showing up on your credit report.

Ok, let’s start fixing.

#1 You Owe More Than 75% Of Your Credit Limit

Let’s say you fall into the first category: you consistently owe more than 75% of your credit limit. The quicker you can get your debt below the 75% threshold, the better off your credit score will be. About a month after you are able to pay down your balances on your lines of credit and/or credit cards (and keep them down), you should start to see an improvement in your score. Under 50% of your credit limit is great and if you can get it under 30% that is best.


#2 You Have Collections Reporting On The Public Sections Of Your Credit Report

If you have collections reporting on the public sections of your credit report, your best bet to getting those removed is to pay the collections and ask the agencies to remove their notations from your credit report. The types of collections that will show up publicly on your credit report are unpaid cable bills, utility bills, telephone/cell phone bills, and other debts that were not originally lines of credit. Pay these off quickly and watch your credit score improve.


#3 Negative Information Continues To Appear On Your Credit Report

Finally, if you see on your credit report, anything negative (like late payments, bad debt. etc.) that is over 6-7 years old, you can ask to have them removed by the credit reporting company. The duration that bad debt stays on your report depends on which province you live in, but it is typically between six and seven years.


Here at RIDES, we specialize in getting Canadians into the car of their dreams – even if they have poor credit. Now that you know three ways to start improving your credit, go ahead and calculate what you can afford.