Tag: credit scores

MAXED OUT CREDIT? YOU NEED TO KNOW HOW TO INCREASE CREDIT SCORE: OUR 13 INTRIGUING TIPS TO IMPROVE YOUR CREDIT SCORE

Post author By Brandon Smith
Post date May 1, 2023

how to increase credit score

Our mission includes helping you know how to increase credit score with our free online course

The objective of this Brandon’s Blog is to furnish readers with comprehensive insights on improving their credit rating, alongside introducing them to our complimentary no-cost e-learning module, “How to Increase Credit Score: How To Improve Your Canadian Credit Score”. This user-friendly course provides a definitive guide on increasing your credit score, thereby paving the way for better financial prospects. The brief video above describes the course and how you can access it.

This Brandon’s Blog provides highlights common problems faced by those with low credit scores, including being declined for credit or having to pay high-interest rates. I also provide valuable tips on how to increase credit score. The focus is primarily on the significance of maintaining a good credit score in order to get approval for reasonably priced loans, mortgages, or credit cards.

Explanation of maxed-out credit: Know how to increase credit score

Maxed-out credit happens when an individual has reached their credit limit and is unable to borrow any more and make further purchases. It results in high-interest rates, missed payments, and damaged credit scores. However, there are effective ways to increase your credit score and eliminate debt. This Brandon’s Blog, combined with our free e-learning course, delivers easy-to-understand strategies and expert counsel to equip consumers with everything they need to know to improve their credit scores to unlock better financial prospects.

Through the knowledge I am sharing, individuals can successfully navigate the complex world of credit ratings and experience marked improvements in their daily lives. By embracing sound fiscal practices, one can effectively manage their money, avoid bankruptcies or consumer proposals, and ultimately earn a more favourable financial life. So take control of your financial situation today and with our help, begin your journey towards a more stable and prosperous financial future with our “How to Increase Credit Score: How To Improve Your Canadian Credit Score”.

how to increase credit score

Importance of improving credit score: Know how to increase credit score

In today’s world, a good credit score functions as the cornerstone for getting financial freedom. For people that have grappled with debt, insolvency, bankruptcy or consumer proposals, improving their credit rating may look like an overwhelming obstacle. Yet, with the specific devices and insights we are supplying to you, any person will be able to take control of their very own financial life heading in the direction of a brighter tomorrow.

This is exactly why we have created “How to Increase Credit Score: How To Improve Your Canadian Credit Score“. Our recommendations and our tried-and-tested techniques will move you toward a better credit score, eventually unlocking excellent loan and mortgage opportunities from Canadian lenders, and enabling you to accomplish your financial goals. Take control of your future and bid farewell to higher interest rates and declined credit applications by going through our “How to Increase Credit Score: How To Improve Your Canadian Credit Score” today.

Description of what a credit score is, how it is determined and then how to increase credit score

A person’s credit worthiness is represented by a numerical score known as the credit score. This score is derived from various financial information such as payment history, credit utilization rates, length of credit history, types of credit used, and new credit inquiries.

Credit scores range from 300 to 900, where a higher score is indicative of better credit history and financial stability. The credit report, maintained by Canada’s two credit reporting agencies, Equifax Canada and TransUnion Canada (Equifax/TransUnion), is the source of credit ratings and it is what the Canadian banks will look at.

how to increase credit score

Importance of knowing your credit score and how to increase credit score

Maintaining a good credit score is a key factor in today’s financial landscape, irrespective of whether you are a student, a young professional, a business owner or are retired. Knowing your credit score is important so that you can stay informed on what others think of your creditworthiness and financial standing. Sometimes adverse information may find its way into your credit report as an error. By knowing what your credit report says, you will be able to prove any errors that should be eliminated which produces a lower credit score than what you are entitled to. It is important to have any errors fixed to avoid any negative impact on any assessment of your creditworthiness.

A low credit score can lead to being denied for credit, higher interest rates, and unfavourable loan terms from Canadian lenders. It is essential to maintain a high credit score as it paves the way for obtaining the best possible deals on loans and credit card products from financial institutions at the most favourable rates. Therefore, it is crucial to keep a tab on the various financial factors that contribute to your credit score to ensure a sound financial standing.

That is why we developed our complimentary no-cost e-learning module, “How to Increase Credit Score: How To Improve Your Canadian Credit Score”. To teach you how to improve your credit score.

Knowing how to obtain your free credit report is the 1st step in how to increase credit score

Maintaining vigilance over your credit report is a prudent method for verifying the precision of your credit history and score, both of which serve as significant benchmarks of your monetary stability. Fortunately, procuring a complimentary credit report has become effortless. It is your lawful right to receive an annual free credit report from each of the two Canadian credit bureaus.

Submit a formal request for your credit report via their digital portal or through the Canadian postal service. When you get it, meticulously examine it to identify any inconsistencies or inaccuracies that may be impeding your creditworthiness.

If you find yourself struggling with debt, don’t despair. Our complimentary e-learning module, “How to Increase Credit Score: How To Improve Your Canadian Credit Score” can provide you with valuable insights and practical strategies to enhance your credit score and overcome financial setbacks. You can trust us to help you take control of your financial future today.

how to increase credit score

Common credit score issues that create lower credit scores: How to increase credit score

A low credit score can present significant obstacles, particularly when making significant purchases on credit or seeking loans. Although there are many parts contributing to an individual’s credit score, certain concerns are regularly associated with reduced scores.

A number of widespread credit score difficulties can bring about lower scores, such as:

Late payments: Not making your payments on time will have a major negative impact on your credit score, whether we are talking about credit cards, loans or lines of credit. Late payments reflect badly on your credit report and can significantly affect your overall score. Paying your debts on time, and not just your minimum payment, has a positive impact on your credit rating.
High credit utilization: A higher credit utilization rate will adversely impact your credit score. Financial institutions prioritize borrowers who exhibit responsible credit management practices; hence, maintaining a low credit utilization ratio (usually below 30%) is fundamental.
Errors on your credit bureau report: As already stated, inaccuracies on a credit report, ranging from erroneous personal details to accounts that are not legitimately attributable, can harm your credit rating. To safeguard against such potential pitfalls, it is imperative to maintain an annual review of your credit report and promptly challenge, with evidence, any inaccuracies that may be encountered.
Defaulting on a loan: Be it a mortgage or an automobile loan, defaulting will lead to a deterioration in your creditworthiness. Therefore, you have to make sure when you are approved for a loan that you can afford the monthly payments and meet all other repayment terms. This is of prime importance.
Applying for too much credit: Requesting too much credit can have negative effects on your credit rating. Potential lenders, and especially credit card companies, may interpret this as a sign of your nervousness over your financial hardship and a greater chance of you eventually defaulting on the loan. As such, you should exercise moderation when applying for credit. Moderation and realism is the key to maintaining a healthy credit profile.
Accounts in collection: Having accounts in collection leads to a decrease in your credit score. This is because you have now shown that you cannot handle credit responsibly. It is imperative that you promptly settle any outstanding amounts and work with the creditor or its appointed collection agency to eliminate that account from your credit report. If you don’t, there will be a negative impact on your creditworthiness.
“Hard credit check” versus “soft credit checks”: See the next section for this discussion.

By steering clear of these typical credit score complications, you can keep a good credit score and heighten the probability of obtaining credit approval in the foreseeable future.

“Hard hits” versus “soft hits”: Know how to increase credit score

The first issue is having too many hard inquiries on your credit report. These hard inquiries occur when lenders pull your credit report and do a credit score check as the first step in determining if you’re going to be approved for a loan or other credit product you applied for.

What are hard inquiries on your credit report?

When seeking new credit such as a loan, credit card or mortgage, hard inquiries are initiated on your credit report. A hard inquiry is a request for a copy of your credit report and it remains on your credit report for two years. However, it only affects your credit score for one year.

What are soft inquiries on your credit report?

A soft inquiry is an informational check of your credit that does not impact your credit score. Soft inquiries appear when you or an authorized user view your own credit report, or when a business checks your credit for pre-approved offers or account reviews.

Soft inquiries are also known as “soft pulls” because they do not impact your score, unlike hard inquiries which do.

how to increase credit score

13 tips on how to address these issues and how to increase credit score in Canada

We understand that managing finances can be challenging, especially when you are maxed out on your credit and can’t repay the debt. You may be feeling overwhelmed and unsure of what to do next, but don’t worry, we are here to help.

Developing sound credit practices is the cornerstone of financial literacy. Learning and regularly practicing such practices is crucial as it will improve your financial outlook. By timely payment of bills, responsible use of credit cards, and staying on top of what is in your credit report, you can improve your credit score and secure a path to financial triumph.

This, in turn, can enable you to establish a robust credit history, thereby qualifying you for lower interest rates on all credit products. Sticking with the sound tips indicated below, it will grant you access to more advantageous lending options that may not be easily available to the masses.

Developing sound credit practices means unfailing commitment, meticulous planning, and unwavering attention to detail. However, you will reap the benefits because these tips and activities will help you achieve your long-term financial goals and establish a solid foundation for your and your family’s financial future.

Here are our 13 tips on how to address these issues and how to increase credit score in Canada:

Assessing your debt situation
You have to start by truthfully analyzing your whole financial status to successfully manage your financial debt. This involves meticulously gathering all the information from charge card statements, and loan agreements, and identifying all other outstanding debts to calculate the total amount owed, the individual interest rates you are being charged by product, and all your monthly payments. Only by doing so, can you after that begin to create a realistic plan to pay off your financial debts in a timely and efficient way.
Creating a budget plan
Now that you have collected all of your debt information, it’s time to develop a household budget that includes all incomes as well as expenses. Ensure you include all of your fixed expenditures like rent or mortgage payments, utilities and vehicle loan payments. Then you need to list all of your variable costs like food and entertainment.
Once you have a clear idea of your expenditures, compute your income on a monthly basis and subtract your expenses from it. This will show you where you need to cut down on expenses and/or take on a side gig to raise your income.
Keep in mind that you cannot be spending more than you earn in any month. Ideally, you want to spend less each month than your monthly income, so that you can then have money to dedicate to paying down your debts and building up an emergency savings fund.
Incidentally, do not neglect to include the income tax you need to pay on your income, broken down into a regular monthly cost. Include that amount as a monthly expense also.
Contacting your creditors
It’s crucial to reach out to your creditors promptly if you’re having trouble keeping up with your debt payments. You might find that they’re receptive to collaborating with you on a customized repayment scheme that meets your financial capabilities. By disregarding your debts, you’ll only exacerbate the problem, which could lead to late charges, sanctions, and a negative impact on your credit report.
Please keep in mind that unless you have first done the two steps listed above, you will not have a good understanding of what kind of accommodation you need to ask each creditor for. If you go in well-prepared knowing all of your numbers, you will significantly increase your chances of success in these negotiations.
Explore debt consolidation
If you’re dealing with numerous debts, you could want to take into consideration debt loan consolidation. It’s a viable option where you can secure a single loan at a lower rate of interest than the weighted average interest rate from every one of your debts that you’re currently paying.
You then use the funds from this new loan to fully pay off or otherwise settle all your other debts. As a result, you will then only have one debt to concentrate on, with a reduced month-to-month repayment. This will certainly assist you handle your debts successfully and reduce the amount of interest you’re paying. This also saves you cash that you can then put toward building up your emergency fund and savings.
Reduce credit utilization
Decreasing credit utilization is an essential part of increasing your credit score. Firstly, take stock of your existing credit usage, and attempt to pay off the balances on the highest-interest accounts first. Think about settling your debts with a debt consolidation loan or a zero-percent balance transfer credit card. You can enjoy a healthy financial future by reducing your credit card balances and limiting how many times you apply for credit within a year. Enhance your credit score by lowering your credit utilization ratio.
Pay your bills on time
Always paying your bills on time is key to maintaining your credit rating in good shape. A constant history of timely repayments will help you build a higher credit score and which improves the look of your credit report. It is critical to keep your bills paid on time to show a positive payment history and not have a damaging influence on your credit history.
Use Your Credit Responsibly
Avoid maxing out your charge cards and try to keep your credit utilization rate low as previously stated. It will help you keep a great credit rating or improve your existing one by showing lenders that you are a responsible borrower.
Monitor Your Credit Report
Maintaining an accurate credit report and safeguarding against identity theft are critical financial practices. You are legally entitled to get from the Canadian credit reporting bureaus a complimentary copy of your credit report annually.
Thoroughly review it so that you can detect any fraudulent activities or errors that could result in severe damage to your credit rating. Hopefully, there are not, but you must remain alert and well-informed about your credit standing to ensure your financial well-being.
Limit New Credit Applications
It is important for you to remember that each credit application you make reduces your credit score. Therefore, you must be cautious and limit the number of credit applications you make. You should only try to get new credit when it is absolutely needed. This advice also goes for applying for a credit limit increase of an existing credit product.
Developing a Strong Credit Profile
Having no or very little credit history can pose a huge problem when you make a credit application. Your credit file does not have enough information in it to show that you can handle credit responsibly. It is recommended to begin developing a positive credit history early on in your adult life. You should consider alternatives such as getting a secured credit card account or a 1-year term personal loan that requires you to make regular monthly payments. If you make your payments on time, you will begin establishing an excellent credit track record which brings about a good credit score.
A word of caution. As you are just starting out, make sure that you only set reasonable loan or credit card limits so that you can afford the monthly payments to repay what you owe on the credit accounts during the period of time allowed by the lender.
Explore professional credit counselling
Individuals grappling with financial challenges may find it advantageous to seek the expertise of a seasoned credit counsellor. This prudent move can afford them a series of invaluable benefits, all of which serve to bolster their financial literacy and improve their overall monetary management. Prominent advantages of credit counselling include, but are not limited to:
- Enhanced Debt Management: Credit counselling can help individuals struggling with debt to manage their finances better. The counsellors can offer valuable advice on debt repayment strategies, budgeting, and managing the debt load effectively.
- Financial literacy: The acquisition of financial knowledge is essential for individuals to navigate the complexities of financial management with success. To this end, credit counsellors offer an imperative service by imparting essential financial education that equips individuals with the necessary skills to cultivate sound financial habits, make informed financial decisions, and preemptively avoid potential financial obstacles.
- Improved credit score: Credit counselling services can provide individuals with the valuable expertise necessary to improve their credit scores. People who go through credit counselling obtain the tools necessary to practice the habit of responsible financial management which over time improves their credit scores.
- Emotional Support: The credit counsellor can help people through the rough patches of anxiety and worry about their financial situation until they start feeling better about themselves and their improving financial situation.
Speak to a licensed insolvency trustee
There are benefits to having a no-cost consultation with a Canadian licensed insolvency trustee if you are facing financial difficulty. Here are a few:
- - Expert advice
  - Protection from creditors
  - Debt relief
  - Guidance through the process
  - Financial education
Overall, speaking with a Canadian licensed insolvency trustee can help you take control of your finances and achieve a fresh start.
Watch the video at the top of this Brandon’s Blog

You will find out how to access our no-cost e-learning module, “How to Increase Credit Score: How To Improve Your Canadian Credit Score”.

Conclusion: How to increase credit score

Managing your debts can be challenging, but with the right plan in place, it’s possible to get back on track. Remember to assess your debt situation, create a budget plan, contact your creditors, explore debt consolidation, and consider bankruptcy only as a last resort option. With these steps, you can take control of your finances and work towards a debt-free future. Having a maxed-out credit can be stressful and overwhelming. However, it is also an opportunity to take control of your finances and work towards improving your credit score.

With our complimentary no-cost e-learning module, “How to Increase Credit Score: How To Improve Your Canadian Credit Score”, you can learn practical strategies and expert advice on how to boost your credit score and secure better financial opportunities. By following our simple steps, you can finally put an end to being denied credit or paying high-interest rates. With dedication and perseverance, you can unlock financial freedom and achieve your goals. So, don’t wait any longer; start your journey towards a healthier credit score today and join countless individuals who have already benefited from our guide.

I hope you enjoyed this how to increase credit score Brandon’s Blog.

Revenue and cash flow shortages are critical issues facing people, entrepreneurs and their companies and businesses. Are you now worried about just how you or your business are going to survive? Are you worried about what your fiduciary obligations are and not sure if the decisions you are about to make are the correct ones to avoid personal liability? Those concerns are obviously on your mind. Coming out of the pandemic, we are also now worried about the economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy proceedings. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

The Ira Smith Trustee & Receiver Inc. team understands that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

CLICK THE PICTURE BELOW TO GET OUR COMPLIMENTARY NO-COST E-LEARNING MODULE, “HOW TO INCREASE CREDIT SCORE: HOW TO IMPROVE YOUR CANADIAN CREDIT SCORE”

Brandon Blog Post

CONSOLIDATION LOANS IN CANADA: IS IT POSSIBLE TO CONSOLIDATE DEBT BY USING THIS 1 SIMPLE GOING POSTAL HACK?

Post author By Brandon Smith
Post date October 17, 2022

Debt consolidation loans in Canada

Debt consolidation loans in Canada can be an excellent means to conserve money and get your funds in order. By combining several financial obligations into an affordable single loan, you can frequently get a lower rate of interest and also reduced month-to-month payments. This can assist you to get out of debt quicker as well as save cash over time.

Prior to getting debt consolidation loans in Canada, it is very important to understand the terms of the financing and also to make sure you can afford the monthly payments. It’s also a good idea to look around and compare rates of interest and also loan terms from various financial institutions.

In this Brandon’s Blog, I discuss the concept of debt consolidation loans in Canada and a sort of new potential lender offering personal loans in Canada. I will also share another debt settlement and debt consolidation option that may be beneficial for people and companies who want to repair their financial situation.

Advantages as well as downsides of consolidation loans in Canada

Upsides

Debt consolidation loans in Canada can offer many benefits over making regular monthly payments on many different loans and debts with different interest rates. Interest rates on some debts, like credit card debt, can be categorized as high-interest debts, making it difficult to make a dent in the balance owing. if all you ever do is make the monthly minimum payment.

Consolidation loans supply a number of advantages, such as:

Reduced interest rates – Lenders normally give consumers reduced rates of interest on individual personal loans allowing them to repay their high-interest-rate credit card debt. Consolidation loans in Canada can be an excellent method to obtain a lower rate of interest and come to be debt-free quicker.

Reduce your monthly payments – Banks and credit unions usually offer debt consolidation loans in Canada with terms of up to 5 years. This, along with the lower interest rate, can help you save a lot of money in the long run and give you a lower monthly payment than the sum of the monthly payments required under your many debts.

A single payment instead of multiple payments – One of the best things about debt consolidation loans in Canada is that you only have to make one monthly payment. This makes it much easier to budget and stick to your plan. Instead of having to remember to pay six different bills each month, you only have to worry about one.

Potentially improved credit scores – Your credit report is a number that banks make use of to determine your creditworthiness. A high credit rating suggests you are a low-risk borrower, which is excellent. A bad credit rating indicates you are high-risk, which is bad.

By obtaining a debt consolidation loan, making on-time payments and paying it off on time without a payment schedule default or late payments, you are restoring your bad credit score in 2 ways. First, you have revealed that you had the ability to fully settle all of your other financial debts. Second, you are repairing your credit score by making the consolidation loan payments on time. It is not instant, yet in time, paying off debt consolidation loans in Canada will certainly improve your credit rating. Over time, you will see your credit score and credit report improve.

Downsides

There are a few downsides to debt consolidation loans in Canada, including:

Debt consolidation loans in Canada are often referred to as “easy money.” But they aren’t always easy. Even though many consumers think they qualify for a loan based solely on their disposable income, there are certain circumstances where Canadian banks will not see your monthly income in as good a light as you do. You will need collateral such as real estate, cars, boats, etc.

If you do not have these things, you may be at a disadvantage. Most banks will not lend money to someone with a low credit score unless they have some form of security, such as a car or house with enough equity. This makes sense because the lender knows that it is a debt consolidation loan you are applying for and by definition, you cannot pay off your credit card balances without their loan. They will want to protect themselves against the chance you may default on the loan.

When choosing a bank, you’ll want to compare fees, interest rates and prepayment penalties to ensure you’re getting the best deal. Keep in mind that the lowest fees don’t always mean the best overall value, so be sure to compare all aspects of the loan before making a decision. You might even consider getting one of the types of secured loans by raising money against your home through a home equity line of credit or a second mortgage. So compare your offers of secured loans and unsecured debt consolidation loans in Canada very carefully to consider all factors in deciding which is best for you.

WARNING: Stay away from private lenders, payday lenders and most alternative lenders who may provide loans just as expensive as payday loans. Their fees and high-interest loans will never be in your favour.

Consolidation loans in Canada: Can you consolidate student loan debt?

Students and recent graduates who find themselves buried under student loan debt often look for help. They want to consolidate their debts into one manageable monthly payment, but this can be difficult to obtain because there are few debt consolidation loans specifically designed for them.

Many recent graduates lack the credit history or income to qualify for a consolidation loan. They also generally do not have any free assets to qualify for a single secured debt consolidation loan to pay out over a longer period of time at a lower interest rate.

Unsecured loans to young people with a little credit history will be more expensive than one to an individual with a long-established credit history. That assumes that they can even qualify for this type of loan.

For these reasons, other than perhaps for a recent graduate from either medicine or dentistry who perhaps can roll their student debt into a professional loan, it will be very difficult to get consolidation loans in Canada to consolidate student debt.

Consolidation loans in Canada: Can going postal help you reach your financial goals?

Here is a potential new source for debt consolidation loans in Canada. Although it was not set up specifically for consolidation loans, there is no reason why you cannot use the money for that purpose if you are approved.

There is a new loan program offered by Canada Post which is designed to help people who are struggling financially, especially in rural areas where access to banking institutions is limited. It is called the Canada Post MyMoney™ Loan product. The idea is that you get a loan that’s based on how much you can afford to pay back, what you need the money for, and how likely you are to repay it.

The initiative is part of Canada Post’s commitment to helping Canadians manage their finances better. Their goal is to provide easy access to financial services and products that can help people save time and money.

To have your loan application considered, you have to be either a Canadian citizen or a Permanent Resident. You must be no younger than 18 years of age and you need to have annual earnings of a minimum of $1,000. Additionally, you need to not have been bankrupt within the 2 years before applying for the loan or had any of your financial debts handed off to a collection agency within the year before applying. They will of course also do a credit check on you.

In order to receive your loan proceeds, you must have a chequing or interest-bearing account with a Canadian financial institution in your own name. Borrowers of MyMoney™ loans are not required to offer any security against assets, in contrast to secured loans from banks and credit unions. Instead, applicants need only provide proof of identity, employment history and income. Both variable and fixed-rate installment loans are offered. The actual lender is TD Bank.

Consolidation loans in Canada: Other financial debt loan consolidation choices

You may not want to take on more debt to pay off your current debt. I don’t blame you and I get it. Or you may have been denied a debt consolidation loan. Here are some other options for consolidating your debt:

Balance Transfer Credit Cards

A balance transfer is simply when you move the balance of one credit card over to another credit card. For example, if you have a balance of $5,000 on your Mastercard, you can transfer that balance to a new Visa account that offers you 0% interest for 1 year on all balance transfers.

When you switch, you won’t have to pay interest charges for 12 months. After that, you’ll need to pay off the balance in full or start making payments on the balance transferred. Of course, you’ll still accrue interest after the interest-free period on the remaining balance.

Consolidation loans in Canada: Credit counselling

Credit counselling is a service that helps individuals to manage their finances and improve their financial situation. It can be done with a range of techniques, including budgeting, negotiating with creditors, setting up a plan to repay debt and monitoring actual behaviour vs. the plan.

Credit counselling can be an excellent way for individuals to take control of their financial obligations. It can help them create a plan to settle their debt, and provide them with the tools and knowledge they need to maintain financial literacy in the future.

There are many different credit counselling services available to choose from. You should select a community-based service to avoid being charged any fees. Be sure to stay away from any counselling service that charges fees, as this will only add to your expenses when trying to reduce debt.

Consolidation loans in Canada: Debt help is available with a financial restructuring program

Financial restructuring is a complicated and difficult procedure, however, it likewise provides individuals as well as businesses with a new beginning and a brand-new lease on life. Selecting to reorganize your finances with the help of a licensed insolvency trustee will certainly have temporary challenges, but can ultimately provide you with financial relief and a fresh start.

If you are considering financial restructuring, we urge you to consult with a licensed insolvency trustee to discuss your options. We can help you understand all of your options and work with you to develop a plan that is in your best interests.

Trustees are experienced in all aspects of financial restructuring and can supply you with the information and assistance you require to make the very best decision for your situation.

The most well-known financial restructuring tool for individuals is the consumer proposal. For mid-size companies and individuals with larger debt, it is a Division I proposal. For companies with debts greater than $5 million, restructuring is accomplished through the use of the Companies’ Creditors Arrangement Act.

Here is the best part. You should consider financial restructuring as getting an interest-free loan to pay off all your debts for a fraction of what you owe. I am qualified and experienced in all forms of financial restructuring, can explain this concept to you and am always available to answer any of your questions.

Consolidation loans in Canada: Before making a decision on your financial life needs – Call me

I hope that you found this consolidation loans in Canada Brandon’s Blog informative. If you’re sick and tired of carrying the burden of debt and ready to live a much better life, we can assist. We know exactly how it really feels to be in debt as well as feel like you’re never going to get ahead. We have actually helped lots of people and businesses that were in your position reach financial stability, so we understand it’s feasible for you to prosper in your objective of ending up being debt-free. Nevertheless, it will certainly require some work on your part. We’ll be right here to assist you with every action necessary.

The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too many personal unsecured debts , Credit card debt, income tax debt liability, unsecured loans or personal obligations from the running of your company or from being a business owner. These are all types of debt we can help you eliminate. We are aware of your financial difficulties and understand your concerns. Filing bankruptcy is the last option we explore only after we have exhausted all other options to avoid bankruptcy, such as financial restructuring through a debt repayment plan.

It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to give you the best management advice to get you out of your outstanding debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

The stress placed upon you is huge. We understand your pain points. We are sympathetic to the financial difficulties you are experiencing and would like to help alleviate your concerns. We want to lighten your load by coming up with a debt settlement plan crafted just for you.

We realize that people and businesses in financial difficulty need practical advice and a workable solution in an easy-to-understand financial plan. The Ira Smith Team knows that not everyone has to file for bankruptcy in Canada. Most of our clients never do, as we are familiar with alternatives to bankruptcy. We assist many people in finding the relief they need.

Call or email us. We would be happy to give you a no-cost initial consultation. We can find you the perfect solution to tailor a new debt restructuring procedure specifically for you, based on your unique economic situation and needs. We provide a full range of services to people and companies. If any of this sounds familiar to you and you’re serious about finding a solution, let us know. We will get you back to living a happy life, whether or not there is an economic recession in Canada.

Call us now for a no-cost initial consultation. We are licensed professionals.

Brandon Blog Post

CREDIT SCORE IN CANADA: ARE CAR INSURANCE COMPANIES REQUIRED TO PULL A CREDIT REPORT ON NEW BRUNSWICK RESIDENTS?

Post author By Brandon Smith
Post date September 16, 2021

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

A credit score in Canada: Can car insurance companies use your credit score?

According to the CBC News show “Marketplace” in 2010, home insurance rates can be influenced by a person’s credit score in Canada. A number of people experienced doubled insurance premiums after their insurance company included credit scores in calculating risk.

Consumer credit scores are portrayed positively by those who make use of it. Insurers only check your credit score to determine the best premium for you, according to Desjardins. The Cooperators offer a different perspective. The credit score reflects a person’s financial responsibility and behaviour. The issue is undoubtedly contentious.

In Ontario, as elsewhere in the country, credit scoring has been controversial. In this Brandon Blog, I discuss the recent request by certain auto insurance companies in obtaining consent to check a New Brunswick resident’s credit score in Canada when determining auto insurance rates.

New Brunswick has Canada’s highest rates of personal insolvency and some of its lowest credit scores

There are two Canadian credit bureaus that perform credit scoring in Canada, Equifax and TransUnion. Credit reporting agencies track your credit history by tracking consumer borrowing and payment histories. Credit scores in Canada are derived from these activities.

In Canada, two major credit bureaus report credit scores between 300 and 900. It is through this report that lenders determine whether you have good credit. You are more likely to get credit and have low interest rates if your credit score is high. A credit score in Canada at a high level is therefore beneficial.

What is a good credit score in Canada? You can get a pretty good idea of what they are by looking at the following list:

740 plus Excellent
The 700 to 740 range is a very good score
A score of 680 to 700 is considered good
600 to 679 Fair
Below 600 Poor

Missing payments or maxing out your credit card can result in a bad credit score. As a fintech company, Borrowell Canada represents multiple lenders in Canada that issue credit cards and make loans to individuals based on their respective credit score in Canada. They became the first business in Canada to offer free credit scores and credit reports. Borrowell’s New Brunswick users have an average credit score of 634.

New Brunswick has the lowest average credit score in Canada. Adults in New Brunswick deal with financial problems at a higher rate than anywhere else in Canada. New Brunswick is currently the province with the highest bankruptcy rates for consumers.

credit score in canada

Are bills up to date? New Brunswick auto insurance companies are interested in your credit score

According to insurance companies, studies show bad credit drivers are more likely to have an accident than those with similar driving records, and they want premiums in New Brunswick to reflect that. Several insurance companies in New Brunswick recently gained approval to ask for the introduction of credit scores when setting auto premiums for insurance.

The insurance companies claim studies show that motorists with bad credit are more likely to get into accidents than those with similar driving records, and they want New Brunswick premiums to reflect that.

In Canada, insurance companies believe your credit score in Canada is an accurate predictor of risk and therefore future claims. As a result, policyholders are said to be given rates based on the justest risk segmentation. The application they submitted for approval argued this.

A policyholder will be charged more if they are likely to generate the highest costs than a policyholder who is likely to generate lower costs, according to the New Brunswick Insurance Board. According to the board, it was satisfied there is a relationship between bad credit and bad driving and, as a result, granted the right to set rates using a person’s credit score in Canada.

As part of the risk assessment, a credit score raises a number of concerns:

What will the insurance companies do if New Brunswick residents refuse to have their credit score used?
For insureds with low credit scores and limited resources, insurance may be harder to obtain and more expensive.
Is an individual’s driving record more indicative of risk when it comes to car insurance than their credit score in Canada?
Suppose you are a young adult, new to Canada, unemployed, or barely getting by? A low credit score may make it harder for you to get to school, work, or a doctor’s appointment.

A credit score in Canada: Are insurance companies allowed to check credit scores?

Are the rules the same in all the Canadian Provinces? No, they are not. If you live in a certain province, your credit score may also affect your monthly premium. Those who live in Ontario or Newfoundland and Labrador can breathe easier. In these two provinces, auto insurance companies are not allowed to use your credit score in Canada as there is a ban on insurance companies doing so.

As of spring 2019, the Progressive Conservative Party announced plans to allow companies to ask you for your credit score in exchange for a better rate. It hasn’t happened yet. Premier Ford’s plans may have been thwarted by the COVID-19 pandemic!

It is already the case in Nova Scotia, though you cannot be denied coverage if you refuse. In March 2021, the province’s insurance regulator approved RSA Canada’s request to offer discounts to auto policy applicants based on their credit scores.

In Alberta, insurers are required to ask for your consent before looking at your credit score, and they can’t use it if you only want the most basic plan.

Business is regulated by the provincial government in Manitoba and British Columbia. Manitoba Public Insurance and Insurance Corporation of British Columbia do not list credit scores among their criteria.

As for Saskatchewan, it’s the same story with Saskatchewan Government Insurance (SGI). Despite the fact that drivers are required to get basic coverage through SGI, you might face a credit check if you choose private company coverage.

Quebec, New Brunswick, and Prince Edward Island don’t have any laws forbidding the practice, but it was not common in the two Maritime provinces until the recent change in New Brunswick.

In addition to your driving history, insurance companies also consider your location, driving experience, and the type of car you drive when assessing your accident risks.

We also have a consumer watchdog called the Insurance Bureau of Canada (IBC). The code has been published and 85% of Canada’s car and home insurance companies have signed on.

There are a number of friendly ground rules:

Asking for your permission prior to checking your credit score in Canada.
Do not cancel or deny your insurance if you do not consent.
In the absence of much credit history, calculating your premiums using other relevant information.
credit score in canada

A credit score in Canada: Auto insurers’ interest in N.B. credit scores is bad news for many

I hope this credit score in Canada Brandon Blog was informative. The auto insurers’ interest in New Brunswick credit scores is bad news for many. But if you have a low credit score and too much debt, wherever you live in Canada, you are considered insolvent. There are several insolvency processes available to you. It may not be necessary for you to file for bankruptcy.

If you are concerned because you or your business are dealing with substantial debt challenges, you need debt help and you assume bankruptcy is your only option, call me.

It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties with debt relief options as an alternative to bankruptcy. We can get you the relief you need and so deserve. Our professional advice will create for you a personalized debt-free plan for you or your company during our no-cost initial consultation.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people with credit cards maxed out and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do as we know the alternatives to bankruptcy. We help many people and companies stay clear of filing an assignment in bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need to become debt-free, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

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Brandon Blog Post

CREDIT REPORTING BODY: WILL THE STATUTE OF LIMITATIONS ERASE MY DEBT?

Post author By Brandon Smith
Post date October 16, 2019

What is a credit reporting body?

A credit reporting body is also known as a credit bureau or credit reporting agency. It collects, saves, makes use of and reveals personal credit scores about individual consumers. The bureau refines these details to report on the credit rating or creditworthiness of a person. Businesses considering extending credit to people subscribe to and make use of such a credit reporting body.

One thing the bureaus do is report a listing and condition of your debts. More on this below. People with financial problems who come to see me many times are confused as to how a credit reporting agency operates. Many times people are confused between the credit reporting agency’s reporting of debts where the creditor can no longer sue. The reason they can’t sue is because of the statute of limitations in Ontario (again, more on this below). Yet, the debt is still listed by the credit bureau.

I recently came across an Ontario court decision, that describes perfectly why debts can still be listed on your credit report, even though the creditor has run out of time to sue you.

What are the major credit reporting agencies in Canada?

In Canada, there are 2 such reporting companies for consumers: Equifax and TransUnion. For companies, one of the most prominent credit reporting company is Dun & Bradstreet Canada.

How do I get a free copy of my credit file?

You are able to get your complimentary credit report once every 12 months from each of the two nationwide rating companies. If you need a current report more often than that, you can pay TransUnion or Equifax to get it. You can get your credit report by phone, fax, online or in person. Each credit bureau provides instructions on how to do it.

There are also two online services that will provide you with your credit score and report for free. They are Borrowell and Credit Karma Canada.

The Court case

This court case was somewhat unique in that it was a small claims court case. The 10-page decision clearly shows that a statute of limitations will not erase the debt. The case is Harvey v Capital One Bank, 2019 CanLII 69716 (ON SCSM).

Mr. Harvey sought $25,000.00 against Capital One Bank for purportedly posting to the credit reporting body firms, defamatory details impacting his professional reputation. Mr. Harvey admits he owed money to Capital One however asserts the debt can no longer be pursued, as it is beyond the 2 year limitation period for enforcement according to the Ontario Limitations Act, 2002, S.O. 2002, c. 24, Sched. B. Capital One Bank confessed it reported the debt but was fully justified in doing so according to the Consumer Reporting Act, RSO 1990, c. C.33.

The agreed statement of facts

Mr. Harvey and Capital One Bank submitted an Agreed Statement of Facts:

Mr. Harvey had two Capital One Bank accounts. The account concerned was opened up on or about March 5, 2009. The second account was opened on or around June 2018.
Mr. Harvey was contacted by collection firms acting on behalf of Capital One from 2015 to 2018 in an attempt to collect the debt.
Capital One provided disclosure regarding the terms of the account when Mr. Harvey was originally authorized. He received duplicates of the account statements created, which were accurate, consisting of the balance owing, repayments, interest and fees or charges. All rates of interest and various other fees were correctly applied.
Mr. Harvey was advised many times that his failure to pay the outstanding balance would be reported to the credit reporting body companies and it can adversely affect his credit rating.
Mr. Harvey paid $200.00 on the account in question on October 27, 2014. He failed to make the minimum payment due on December 4, 2014. He as well failed to make any type of subsequent repayment, other than for a $200.00 payment around August 20, 2018.
When Capital One charged off Mr. Harvey’s very first account on June 2015, the balance owing was $841.78.
All details about the Capital One debt in the credit reports generated by Mr. Harvey were accurate and true, with the exception of one amount of $1,449.00 for a different Capital One account which Mr. Harvey would not admit to. In his testimony, he deposed that he has no particular memory of the components of that account or any understanding of the accuracy of the information.
Other non-Capital One credit accounts referenced in Mr. Harvey’s credit record included unfavourable credit history reports. Some of his other non-Capital One credit rating accounts had actually been charged off and sent to a debt collector.
Mr. Harvey acquired a brand-new Canadian Tire Bank MasterCard around January 2019 with a $300.00 credit line, a brand-new FIDO cell phone account around September 2019, a brand-new credit line for a car loan of $22,465.00 around September 2019 and also a new Capital One MasterCard with a credit line of $300.00 around June 2018.

Capital One Bank’s evidence

Capital One’s evidence was straight forward. Credit cards revolve and are reported to the credit reporting body companies on a regular monthly basis. There is a standard conventional rating system used by all financial institutions when reporting to the reporting agencies:

Rating score	Meaning
R1	Indicates settlement on time or 1 to 30 days delinquent.
R2	31 to 60 days delinquent
R3	61 to 90 days overdue
R4	120 days overdue
R5	121 to 150 days overdue
R6	Does not exist
R7	Used only for credit counselling and bankruptcy
R8	Repossessions
R9	Account has been charged off

Mr. Harvey’s Capital One debt was reported to the credit bureaus in conformity with the legislation. By April 9, 2015, the account, 5 months overdue, was completely limited, meaning it cannot be re-opened to make purchases. An R5 score was reported to the credit reporting body companies. By May 9, 2015, it was 6 months overdue. R5 was reported once again.

Once it is 180 days past due, the account is charged off and also an R9 rating is reported. When an account is charged off, it is still reported to the credit reporting agencies and remains an R9 score. After the account was charged off, Capital One engaged various collection companies as normal to attempt to collect the debt.

As the account remains overdue, Capital One continues to report to the credit bureaus up until reporting becomes statute-barred after seven years, based upon the date of the very first payment missed. That was December 4, 2014.

This 7-year reporting period is based on legislative provisions for credit report coverage. After seven years, Capital One makes one final entry in the record which erases the entire line from the credit bureau history. The credit reporting body companies have a similar procedure so they will remove this information also.

The Court’s analysis

The Court’s analysis was simple. It rejected all of the plaintiff’s submissions. The Court stated that the plaintiff never even produced any evidence in support of his claim that he has suffered damages through a loss of reputation.

The Court correctly analyzed the situation. The Deputy Judge found that by Mr. Harvey’s own admission the debt was never paid and stays outstanding. Capital One is not insisting on a claim to title; it is asserting its right to report an unpaid debt throughout the 7-year reporting period under the Ontario Consumer Reporting Act. The Ontario Limitations Act and Consumer Reporting Act serve completely different legislative purposes. They are also not in conflict.

The Court sided with Capital One’s position that the case relied upon by Mr. Harvey entails an argument concerning a right vs. a remedy. In Ontario, the limitation period acts to limit the remedy to sue but not the right to be repaid.

The Court’s decision

Capital One Bank lost the right to sue Mr. Harvey after the 2-year period expired. However, on a mutually exclusive basis, it had the right to report the outstanding amount owing for a 7-year period under different provincial legislation.

The Court further stated that the ramifications to companies extending credit to others might be harmed if such information was inaccessible, merely because the creditor did not commence legal proceedings for repayment of the debt prior to the 2-year limitation period. A person’s failure or refusal to pay their debts is vital details for other creditors, to whom that very same borrower has looked to for more credit.

The Court, therefore, found in favour of Capital One Bank and awarded costs against Mr. Harvey.

Summary

This case perfectly answers the question many people ask me when they come for their free consultation. The question is either: (1) Why is this debt still showing up on my credit report because it is too late for the credit card company to sue me?; or (2) Does the statute of limitations erase my debt? As seen in Mr. Harvey’s case, the limitation period and the reporting period are two different and separate issues.

Do you have way too much debt? Prior to you getting to the phase where you can’t make ends meet and your credit report looks awful, reach out to a licensed insolvency trustee (previously called a bankruptcy trustee). In fact, if you understand that you can’t pay your financial debts, contact us.

We understand the pain and stress excessive financial debt can trigger. We can aid you to get rid of that discomfort as well as address your financial problems offering prompt action and the ideal plan.

Call Ira Smith Trustee & Receiver Inc. today. Make an appointment with one of the Ira Smith Team for a free, no-obligation consultation and you can be on your way to enjoying a carefree retirement Starting Over, Starting Now. Give us a call today so that we can help you get back to stress and pain-free life, Starting Over, Starting Now.

Tags borrowell Canada, capital one, collection agents, credit bureau, credit karma canada, credit report, credit reporting agency, credit reporting body, credit score, credit scores, Equifax Canada, Ira Smith Trustee, limitations act, statute of limitations, transunion canada, what are the major credit reporting agencies in Canada, what is a credit reporting body, will the statute of limitations erase my debt

Brandon Blog Post

CREDIT SCORE IMPROVEMENT: HOW TO HANDLE EVERY CREDIT SCORES CHALLENGE WITH EASE USING THESE TIPS

Post author By Brandon Smith
Post date October 23, 2017

credit score improvement

Credit score improvement: Introduction

It seems that we’ve become obsessed with credit score improvement and credit scores. Traditionally the singular purpose for credit scores was to find how much of a risk you would present to a lender if you were applying for a credit card, insurance, loan, mortgage, rental unit, etc.

Now we even use credit scores to decide if your new date is worthy of becoming your new mate and employers use credit scores to screen job applicants. Somehow from determining credit worthiness, credit scores are now being used as a quasi-personality test to find out your character and level of honesty.

Credit score improvement: Should credit checks be used to screen job applicants?

“Credit reports were not designed as an employment screening tool,” says non-profit group Demos. “Employment credit checks are an illegitimate barrier to employment, often for the very job applicants who need work the most.” In a survey of job-seekers, Demos found that one in seven people with blemished credit said that they’d been denied a job as a result.

On the other side of this issue is credit reporting agency, TransUnion. They stand firm on the use of its reports when determining a person’s employability. “One study found a job applicant with a troubled financial history was almost twice as likely to engage in theft as an applicant who lacked any financial history issues,” company spokesperson Clifton O’Neal said in an email.

Credit score improvement: How is your credit score determined?

There are several factors that go into determining your credit score:

Debt history
Payment history
Amounts owed
How long you’ve been in debt
Type of debt
Length of credit history
Credit inquiries

Credit score improvement: What does your credit score really say about you?

Your credit score means that you’re making your payments on time but it doesn’t tell the story. Many people find themselves in financial difficulty as a result of illness, job loss, divorce or many other factors and that doesn’t make them “undesirables”.

Credit score improvement: Do you really need debt repair?

Are you in financial difficulty and looking for someone to help you get back on track? Call Ira Smith Trustee & Receiver Inc. We’re here to help, not judge. Make an appointment for a free, no obligation consultation and take your first step to debt free living Starting Over, Starting Now.

credit repair

Tags credit score, credit score improvement, credit scores, debt history, employment credit checks, employment screening, financial history, Ira Smith Trustee

Brandon Blog Post

COMFORTABLE RETIREMENT LIVING: YOU NEED A PLAN TO SAVE TODAY TO HAVE A COMFORTABLE RETIREMENT INCOME

Post author By Brandon Smith
Post date August 14, 2017

Comfortable retirement living: Introduction

We all want a comfortable retirement living but many Canadians haven’t got a clue how to make that happen. Your financial health is never a matter of chance, unless you’re a big lottery winner; it takes careful planning and you need to make saving a habit. All the retirement blogs say so.

I can see many of you rolling your eyes now and wondering how you’re supposed to think about saving when you’re trying to make ends meet. But, without a plan your financial situation will never change.

Comfortable retirement living: You need a comfortable retirement budget

Are you thinking about your retirement? If not, now is the time. Research has shown that people who have a plan often save more money and are financially healthier than those who don’t.

Those who thought about retirement — “a lot,” “some” or even “a little” — approached retirement age with twice the wealth of non-planners (2007 Pension Research Council study)
Simply using a retirement calculator increased someone’s likelihood of saving (Journal of Consumer Affairs in 2011)
Parents who created a plan to pay for their children’s college educations saved 76% more than parents who saved but didn’t have a plan (Sallie Mae’s How America Saves for College 2016 report)
Households that plan for large, irregular expenses are 10 times as likely to be financially healthy as those that don’t (Center for Financial Services Innovation study in 2015)

Comfortable retirement living: What is financial health?

What exactly does financial health mean? The Centre for Financial Services Innovation has described financial health as having emergency and retirement savings, sustainable debt loads, good credit scores and property, life and health insurance. Are you financially healthy?

Comfortable retirement living: What is a comfortable retirement definition?

How do you define comfortable retirement? CANSTAR Pty Limited, a privately owned Australian research agency that provides finance comparison services, has what I think is a very good definition:

“…one which enables an older, healthy retiree to be involved in a broad range of leisure and recreational activities. It allows funding for private health insurance, a reasonable car and regular holidays (domestic and occasionally international)…”

Comfortable retirement living: How can you become financially healthy?

Everyone needs a plan – not just for retirement, but for more immediate goals like having enough for the monthly expenses. A financial plan always involves a budget and I can’t stress enough how important a budget is.

Once you have a plan in place you can start saving. It doesn’t have to be huge amounts of money, but just enough to start making saving a habit. Start building a little emergency fund. Once you follow the plan and make saving a habit, you’ll be well on your way to financial health.

If you’re struggling with debt and can’t see a way out, contact Ira Smith Trustee & Receiver Inc. We’re licensed trustees who are experts in helping people just like you get back on your feet Starting Over, Starting Now. Give us a call today and with the right plan you too can be financially healthy again. 3bestaward

Tags budget, comfortable retirement budget, comfortable retirement definition, comfortable retirement income, comfortable retirement living, credit scores, define comfortable retirement, financial health, financial plan, Ira Smith Trustee, make saving a habit, plan to save, retirement, retirement blogs, retirement savings, trustees

Brandon Blog Post

# VIDEO – CREDIT KARMA CANADA REVIEW: IS IT REALLY FREE AND LEGITIMATE? #

Post author By Brandon Smith
Post date February 1, 2017

Credit Karma Canada review: Introduction

Credit Karma Canada has arrived recently from the United States. Its website is creditkarma.ca. Right now they run in most provinces but not yet in Quebec, Nunavut, the Yukon or the Northwest Territories; but they are working on it. The purpose of this blog is to provide our Credit Karma Canada review, tell you what it is and to let you decide if it will be helpful or not for you or someone you know.

Since 2007, Credit Karma USA (CKUSA) has attempted to simplify credit and finance for more than 60 million CKUSA members. They advertise very heavily on US television to attract new members. Becoming a member is free, and it allows any member to get access to their free credit score and credit report, with the option to update every single week. CKUSA also provides financial education to put credit into context.

It’s mission statement is:

“Everyone deserves to feel confident about their finances. Our job is to give you the tools, the education and the opportunities you need to make real, meaningful progress.”

Credit Karma Canada review: Is it really free? Is it legitimate?

So far so good. Like a lot of things advertised as being free, you may wonder to yourself is it really free? Is it legitimate?

The answer is yes; accessing your credit score, your credit report and the financial and educational aspects are free. However, it is a money-making operation. They make money in at least two ways:

They have ads to make money. So if you don’t like ads, just ignore them; and

They do promote various credit card, mortgage and loan programs which they hope members will purchase when needed. When someone takes an offer through CKUSA, it makes money from one of its partners (like the bank that issues a credit card or the lender who funds a loan). Presumably, Credit Karma Canada (CKC) will be following that model by establishing such partnerships.

Credit Karma Canada review: So how does it work?

So this is how it works. When you first open your account and set up your unique password, it’s going to ask you different questions to confirm your identity, including your date of birth and social insurance number. They are trying to become the best-known credit bureau of Canada.

It might include things like where did you get your last car, what kind of car do you have, what addresses have you lived at in the last five years, what address do you currently live at. All of the questions offer you multiple choices to choose from. Once you finish that process your account is open. This allows you to log in either from the app or from their website.

In order to ask you the setup questions, and to then be able to give you your free credit score and report, CKC obtains information from one of our two credit reporting agencies, TransUnion. In the United States, Credit Karma uses both Equifax and TransUnion.

CKC also searches certain public record databases to look for other information such as:

Bankruptcy: A legal filing by people or businesses seeking certain types of relief from all or some their debt.
Civil Judgment: A non-criminal ruling in a court of law, often requiring the person or business to pay damages.
Registered Items: Other items included in public records, like a lien against your car or a mortgage or loan registered against your house.

Credit Karma Canada review: Does using it lower my credit score?

You can watch your score through CKC anytime you want. Unlike a potential or real lender performing a check on you, the more times you go into the CKC database it does not affect your score. The TransUnion and Equifax credit score algorithm reduces your score every time someone does a check on you.

The theory is that each credit check is either related to your having applied for new loan(s), or an existing lender feels the need to check up on you. The algorithm interprets this as your need for more borrowing. If the checks are too often or too close together, their algorithm assumes you are experiencing some financial problems requiring more loans. The CKC algorithm prevents this from happening, which is a good thing.

However, remember that the CKC algorithm is different from the one used by TransUnion and Equifax; this is an important distinction which I will explain shortly.

Credit Karma Canada review: Things I like about it

A feature that I do like is that the CKC report will help you understand what factors are impacting your score, thereby telling you what you need to work on to improve your score. This is especially for young people who are just learning about borrowing and personal finance for the very first time. CKC gives advice for how to help improve your score and things not to do.

So it is handy to find out about:

payment history;
credit use;
derogatory remarks on your financial history;
total account and inquiries;
your full report; and
credit advice.

CKC gives you an easy way to see how you’re doing financially, how much money you have tied up between charge cards and auto and other loans. It also gives you tips on how to improve your score, all for free.

It is an easy and efficient way of checking up on yourself that TransUnion, Equifax or any of our Canadian financial institutions have never done. So, in my view, CKC is providing a real service and benefit.

Credit Karma Canada review: Things I do not like about it

So are there any downsides? Since CKC is not yet advertising who its financial product partners are, I have to look at the US operation. So, my comments come from a review of only CKUSA.

I’m not convinced that I would personally recommend any of the financial partners. Here are the reasons why:

The financial partners have to pay a fee to CKUSA, and that fee has to be reflected in the cost of the financial product itself, making it higher.
It is safe to assume that CKUSA members are working on improving their scores. The financial partners may be pricing their products for those people who have not achieved enough of a score to go and negotiate the rate they will be paying with any Bank. Again, this means the cost of any specific financial product through CKUSA could be higher than otherwise available to people with a better score.
So if you do have a good score, you can probably get a better deal by going to the Bank you normally deal with.
Once CKC establishes its Canadian financial partners, we will have to see if it follows this higher priced US model.
The most common complaint in the US is that the score through CKUSA is different from the score calculated by either Equifax or TransUnion.

Recall that I gave an example of how the CKUSA algorithm was different from the one used by the credit reporting agencies? Well, it is further differences in the algorithms that causes this disparity. I am not talking about a small disparity either. Complaints show that the difference could be as much as 100 points!

CKC states that it shows the same credit rating and report that TransUnion shows. Again, time will tell if the Canadian experience is the same or different from in the United States.

My final point is not a criticism, but merely a fact. CKC describes their system as being safe, they respect your privacy and do not share your information with any third-party.

However, when you give personal information on a website, and especially financial information including your social insurance number, this always provides an opportunity for hackers and phisher scam artists to attempt to either hack the system or use phishing emails and websites to attempt to steal your identity.

Credit Karma Canada review: Only you are in control of your credit and debts

I hope that you realize from this blog that understanding your credit score and credit report and obtaining more financial education are all positive things and are necessary to be able to have a good financial life. However, sometimes life gets in the way and good people experience debt problems.

Only you can be the one to deal with your debt to get on top of it and gain back your life. If you don’t know how to go about reducing your debt, start by contacting Ira Smith Trustee & Receiver Inc. There are many ways to deal with debt. As experts we can help you make the best choice and set you on a path to debt free living Starting Over, Starting Now. Make an appointment for a free, no obligation today.

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Brandon Blog Post

DIFFERENCE BETWEEN CREDIT REPORT AND CREDIT SCORE: KNOW YOUR CREDIT REPORT SCORE CARD?

Post author By Brandon Smith
Post date January 9, 2017

Difference between credit report and credit score: Introduction

Many people we see don’t realize the difference between credit report and credit score and they often confuse a credit report with a credit score. So, let’s get back to basics. We’ll clarify credit reports for you and explain why you should check your credit report and how often.

Difference between credit report and credit score: What is a credit report?

A credit report is a detailed record of your credit history – when you opened your account(s), how much you owe, if you make your payments on time, miss payments, go over your credit limit, etc. In Canada there are two major credit reporting agencies – Equifax Canada and TransUnion Canada. They collect information about how you use credit (lenders send them the information) and they create credit reports based on that information. Personal information that’s available in public records, such as a bankruptcy, is also included in your credit report.

Difference between credit report and credit score: What is a credit score?

A credit score is not the same as a credit report. A credit score is a three-digit number produced by a mathematical formula using the information in your credit report. You get points for using credit responsibly. You lose points if you’re having problems managing credit. In Canada, credit scores range from 300 to 900 points (900 is the best score).

Difference between credit report and credit score:: Why is your credit report so important?

As a society we are increasingly dependent on credit. Every time you apply for a credit card, a utility, mortgage, an apartment rental and often even a job, your credit history is checked. These lenders use your credit report and score to decide how risky it would be for them to lend you money or extend you credit. Your credit report and score may also be used to set your interest rate and credit limit. If you have a poor credit history it’s unlikely that you will be approved for credit cards, mortgages and other loans. And if you do get approved you will more than likely have to pay a higher interest rate than someone with a good credit history.

Difference between credit report and credit score: How often should you check your credit report?

According to the Financial Consumer Agency of Canada, you should check your credit report at least once a year. They also recommend that you order your credit report from both credit reporting agencies – Equifax Canada and TransUnion Canada and that you consider requesting your report from one agency and then waiting six months before you order from the other agency to detect any problems sooner. Mistakes on credit reports do happen so review them carefully and pay special attention to any signs of identity theft – accounts that you didn’t open, credit cards that you didn’t apply for, etc. Be aware that the credit reporting agencies charge a fee to order your credit score.

Difference between credit report and credit score:: How can I order my credit report or score for free?

You can get a free credit report. Equifax Canada offers what they call a “credit disclosure file” and TransUnion offers a “consumer disclosure”. However, these credit reports do NOT include your credit score. To get these free credit reports you must order them by mail, fax or phone and receive them by mail, fax or phone. If you prefer to get access to them online, you will have to pay a fee.

You may have seen commercials offering free credit scores. Beware! There’s no such thing. These companies are either fraudsters out to get your personal financial information or you’ll have to sign up for a paid service to get the free credit score.

Difference between credit report and credit score: Are you having trouble managing credit?

If so, contact Ira Smith Trustee & Receiver Inc. as quickly as possible. With immediate action and a solid financial plan for moving forward we can help you deal with debt and learn to manage it well in the future, Starting Over, Starting Now. We’re just a phone call away.

Tags Bankruptcy, credit history, credit report, credit reporting agencies, credit reports, credit score, credit scores, difference between credit report and credit score, Equifax, Ira Smith Trustee, TransUnion

Brandon Blog Post

CREDIT SCORES ONTARIO: USE YOURS TO SCORE THAT DREAM DATE!

Post author By Brandon Smith
Post date November 28, 2016

CREDIT SCORES ONTARIO

Credit scores Ontario: What is it?

Credit scores Ontario is a judgment about your financial health, at a specific time. It indicates the risk you represent for lenders, compared with other consumers. There are many ways to work out credit scores. The credit-reporting agencies Equifax and TransUnion use a scale from 300 to 900.

In Canada, the magic number is probably 650. A score above 650 will likely qualify you for a standard loan while a score under 650 will likely bring difficulty in receiving new credit.

Credit scores Ontario: How is it calculated?

The credit score formula takes all or most of the following into account:

Your payment history
The total amount you owe
Length of your credit history
New credit accounts
New credit inquiries, whether approved or not
Types of credit in use

Credit scores Ontario: Good credit scores do have sex appeal

A good credit score has shown that money does play a big role in the dating world; it is a reality. It’s sad but true; your income does play a big part in how attractive you seem to a potential partner. And, did you know that good credit scores have sex appeal?

Credit scores Ontario: Like it or not, a good credit score makes you attractive

There’s an old joke that says there’s no such thing as an ugly man in a Ferrari. But, let’s be honest, if you were on an online dating site and saw a potential date who was attractive but unemployed or in what you perceived as a low paying job, would you reach out to that person?

Conversely, if you saw someone who wasn’t movie star attractive but reported a high income or listed their profession as CEO, lawyer or doctor, wouldn’t they look a lot better to you?

Credit scores Ontario: Credit score dating backed by scientific studies

Don’t take my word for it. This is all backed up by science. There are many studies on the subject including a recent one co-authored by behavioural economist Dan Ariely who in the journal Quantitative Marketing and Economics reported:

Men and women prefer a high-income partners over low-income partners
This income preference is more pronounced for women

Credit scores Ontario: Beware – high income is only one part of it

Income only tells part of the story. Find out how they spend their money. Are they living within their means? They may have a big income but is it enough to cover the expenses of the fancy sports car, big house and exotic vacations? Big earners, celebrities and even Presidents (and President-elects!) declare bankruptcy too:

Credit scores Ontario: what to do about too much debt

We aren’t in the dating business, but we can help you get your debt issues under control. Give the Ira Smith Team a call today so that Starting Over, Starting Now you can live a debt free life, and you may have better luck dating.

Tags bankrupt, bankruptcies, Bankruptcy, credit score, credit score Ontario, credit scores, credit scores ontario, dating, declare bankruptcy, good credit score, good credit scores, insolvency, Ira Smith Trustee, living paycheque to paycheque, Ontario, sex

Brandon Blog Post

CREDIT SCORE CHART MATCHMAKING SECRETS

Post author By Brandon Smith
Post date November 2, 2015

The Federal Reserve uses the credit score chart for matchmaking?

Did you ever envision that your credit score chart would provide the key to successful matchmaking? From newspaper columnists to Dr. Phil, everyone is a relationship guru; but you may be surprised to learn that the Federal Reserve is also dispensing relationship advice.

Economists Jane Dokko, Geng Li and Jessica Hayes believe that the credit score range contained in a credit score chart has an important role to play in predicting the stability and potential longevity of a relationship. This is what they discovered:

People with credit scores at the higher end of the credit score chart are more likely to be in a committed relationship and stay together
People tend to form relationships with others who have a similar credit score as them
The strength of the match, both in the headline credit score and its details, is predictive of whether or not a couple are more likely to break up for observable reasons pertaining to finance and household spending
Credit scores are indicative of trustworthiness in general, and couples with a mismatch in credit scores are more likely to see their relationships end for reasons not directly related to their use of credit

Better budgeting and better ranking on the credit score chart leads to better relationships

Echoing these findings, in a recent survey by Ally Bank 55% of respondents said that a strong budgeting and saving strategy was the most appealing money-related quality a partner or potential partner could have. In addition, 75% of the respondents to this survey said it was moderately or highly important to find a partner with a similar approach to money and budgeting.

Get your rightful place on the credit score chart now

Financial stress and poor money management can ruin your relationship, but it doesn’t have to. Don’t be afraid of debt. Face it head on with the help of the Ira Smith Team. We can help you restore your life to financial health Starting Over, Starting Now. Contact us immediately so that we can create your personalized plan to get you your better place on the credit score chart. Give us a call today.

Tags Bankruptcy, budgeting, Credit, credit score, credit score chart, credit score range, credit scores, Debt, Federal Reserve, financial health, financial stress, money management, starting over starting now

Our mission includes helping you know how to increase credit score with our free online course

Explanation of maxed-out credit: Know how to increase credit score

Importance of improving credit score: Know how to increase credit score

Description of what a credit score is, how it is determined and then how to increase credit score

Importance of knowing your credit score and how to increase credit score

Knowing how to obtain your free credit report is the 1st step in how to increase credit score

Common credit score issues that create lower credit scores: How to increase credit score

“Hard hits” versus “soft hits”: Know how to increase credit score

What are hard inquiries on your credit report?

What are soft inquiries on your credit report?

13 tips on how to address these issues and how to increase credit score in Canada

Assessing your debt situation

Creating a budget plan

Contacting your creditors

Explore debt consolidation

Reduce credit utilization

Pay your bills on time

Use Your Credit Responsibly

Monitor Your Credit Report

Limit New Credit Applications

Developing a Strong Credit Profile

Explore professional credit counselling

Speak to a licensed insolvency trustee

Watch the video at the top of this Brandon’s Blog

Conclusion: How to increase credit score

Debt consolidation loans in Canada

Advantages as well as downsides of consolidation loans in Canada

Upsides

Downsides

Consolidation loans in Canada: Can you consolidate student loan debt?

Consolidation loans in Canada: Can going postal help you reach your financial goals?

Consolidation loans in Canada: Other financial debt loan consolidation choices

Balance Transfer Credit Cards

Consolidation loans in Canada: Credit counselling

Consolidation loans in Canada: Debt help is available with a financial restructuring program

Consolidation loans in Canada: Before making a decision on your financial life needs – Call me

A credit score in Canada: Can car insurance companies use your credit score?

New Brunswick has Canada’s highest rates of personal insolvency and some of its lowest credit scores

Are bills up to date? New Brunswick auto insurance companies are interested in your credit score

A credit score in Canada: Are insurance companies allowed to check credit scores?

A credit score in Canada: Auto insurers’ interest in N.B. credit scores is bad news for many

What is a credit reporting body?

What are the major credit reporting agencies in Canada?

How do I get a free copy of my credit file?

The Court case

The agreed statement of facts

Capital One Bank’s evidence

The Court’s analysis

The Court’s decision

Summary

Credit score improvement: Introduction

Credit score improvement: Should credit checks be used to screen job applicants?

Credit score improvement: How is your credit score determined?

Credit score improvement: What does your credit score really say about you?

Credit score improvement: Do you really need debt repair?

Comfortable retirement living: Introduction

Comfortable retirement living: You need a comfortable retirement budget

Comfortable retirement living: What is financial health?

Comfortable retirement living: What is a comfortable retirement definition?

Comfortable retirement living: How can you become financially healthy?

Credit Karma Canada review: Is it really free? Is it legitimate?

Credit Karma Canada review: So how does it work?

Credit Karma Canada review: Things I like about it

Credit Karma Canada review: Things I do not like about it

Credit Karma Canada review: Only you are in control of your credit and debts

Difference between credit report and credit score: Introduction

Difference between credit report and credit score: What is a credit report?

Difference between credit report and credit score: What is a credit score?

Difference between credit report and credit score:: Why is your credit report so important?

Difference between credit report and credit score: How often should you check your credit report?

Difference between credit report and credit score:: How can I order my credit report or score for free?

Difference between credit report and credit score: Are you having trouble managing credit?

CREDIT SCORES ONTARIO

Credit scores Ontario: What is it?

Credit scores Ontario: How is it calculated?

Credit scores Ontario: Good credit scores do have sex appeal

Credit scores Ontario: Like it or not, a good credit score makes you attractive

Credit scores Ontario: Credit score dating backed by scientific studies

Credit scores Ontario: Beware – high income is only one part of it

Credit scores Ontario: what to do about too much debt