Many clients I meet with in Windsor, Chatham and Leamington are concerned about their credit rating and how to repair their credit.
A credit bureau is an information service for credit lenders to exchange information with credit borrowers. The credit reporting agencies receives this information directly from the financial and retail institutions and retains it to help other lenders make decisions about granting you credit. Because your credit report contains all the information received from your lenders and provides a picture of your financial health, other lenders will request your report when they are determining whether or not to grant you a loan. Your credit report is a history that will help them determine what kind of lending risk you are – if you are likely to repay your obligation on time or not.
You may or may not already know that there are two major credit reporting agencies; Equifax and Transunion .
Everyone is entitled to get a copy of their credit report once a year to ensure all information reflected on it is accurate. If inaccurate information exists on the credit report then it is up to the individual to contact either Equifax or Transunion to find out how to change the information. The consumer reporting agency works for both you and the business to which it is reporting. It must inform the business of your current credit situation – and be fair and honest about what it reports. It is to the agency’s advantage to provide the best and most accurate information possible to ensure trust in its services. You could be denied a loan if your credit contains an error.
Generally a consumer proposal is on your credit report for three years after your last payment, and a bankruptcy is reflected for six years from the date of your discharge, unless it is a second bankruptcy which is noted for 14 years.
A practical way to re-establish your credit rating is to maintain current house payments or vehicle payments on time or to obtain a secured credit card from a Canadian Financial institution. This type of revolving credit requires you to pledge money as security to use the credit card.
If you are having difficulty handling your bills, then please come in to see me. I can help you get started on a fresh start plan for your future. You can call me at 310-PLAN or email me.
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