Every day, in different ways, we do things to protect
ourselves without even giving it a second thought. Buckle our seatbelts. Look
both ways before crossing the street. Lock the front door. Wear sunscreen. Avoid
the “mystery meat” at the deli. The list goes on and on.
But what are you doing to protect yourself from a
credit calamity? One of the easiest ways to keep your credit in good shape is to
know how to handle the risky situations that can lead to a credit disaster.
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Canada credit report and score!
Here are the most common causes of a credit
meltdown and what you can do to stay one step ahead.
Unpaid
bills. This is how
the story usually unfolds: you’re cleaning your office and come across a bill
you think you already paid. You throw out the statement without giving it a
second thought. Unfortunately, it turns out the bill was never paid. After
accruing late fees, the account gets sent to collections. Suddenly, you’re
stuck with a collections record on your credit profile for 6 years.
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here to get yoiur credit report and score.
Don’t let this happen to you. Create a bill
payment and filing system that works into your schedule. Make a list of each of
your bills and when they are due. Set aside a block of time each month that
accommodates these due dates so you remember to pay your bills. Create a folder
for unpaid bills and separate folders for each account; once a bill has been
paid, file the invoice into the appropriate account folder. These folders give
you a visual reminder of what has or has not been paid.
Divorce/Separation.
If you go through a divorce or separation, it’s important to split up all of
your joint accounts right away. The last thing you need is to have your credit
suffer because your former spouse is racking up credit card bills or missing
payments. So make sure all joint and co-signed accounts from your marriage are
closed or refinanced as soon as you can.
The best way to do this is to get your credit profile and look over your
accounts carefully. Keep in mind that a court decree alone will not stop a joint
account from being recorded on each party’s credit profile.
Identity
theft.
You’re probably not surprised to see identity theft on the list—it can cause
havoc on your credit profile. Identity theft is a real threat these days, but if
you know how to prevent it from happening to you, you have a better chance of
safeguarding your credit.
Some prevention tips are: shred everything with
your name on it before you throw it away…only use your credit card on websites
you know are safe…don’t carry your Social Insurance card in your
wallet…and consider paying your bills online or with automatic payment (less
mail for thieves to get their hands on).
Another great security step is to sign up for
monitoring and check your credit profile
several times a year. Check recent
activity on your profile. If you notice unauthorized accounts or inquiries, take
immediate action.
Try
to stay on top of your credit basics now to protect your credit later. You’ll
be glad you did when you steer clear of trouble down the road.
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an Instant TransUnion Canada Credit Report & Score!
