With the current economic climate characterized by tighter credit requirements and increased unemployment rates, many Canadians are finding it difficult to fit into traditional banks’ financing boxes. However, there are solutions to every problem. It is essential to consult a mortgage professional to determine whether your situation can be quickly repaired or if you face a longer road to credit recovery.

Mortgage professionals who specialize in the credit repair niche can help clients with credit challenges improve their situations through various routes. If your situation is beyond the expertise of a mortgage professional, they can connect you with other professionals, including credit counsellors and bankruptcy trustees.

For instance, if you have some equity built up in your home and a manageable credit score, you can refinance your mortgage and use the money to pay off high-interest credit card debt. Clearing up this debt frees up more cash flow each month.

With interest rates at an all-time low, it is an ideal time to refinance your mortgage and potentially save thousands of dollars per year, allowing you to pay more towards the principal on your mortgage as opposed to interest. This, in turn, can help build equity quicker.

Here are five steps you can use to attain a speedy credit score boost:

1. Pay down credit cards: Paying down credit cards is the best way to increase your credit score. Ensure that you only use 30% of your limits.
2. Limit the use of credit cards: Racking up a large amount and paying it off in monthly instalments can hurt your credit score.
3. Check credit limits: Ensure that everything is up to date. Some lenders do not report your maximum limits. The best bet is to pay your balances down or off before your statement periods close.
4. Keep old cards: Older credit is better credit. Use old credit cards periodically and then pay them off.
5. Don’t let mistakes build up: Always dispute any mistakes or situations that may harm your score. For instance, if a cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.

If you have repeatedly missed payments on your credit cards, refinancing or quickly boosting your credit score may not be possible. Depending on the severity of your situation, your Mortgage Centres Canada mortgage professional can help you address the concerns through various means and refer you to other professionals to help get your credit situation in check.