When was the last time you looked, and I mean really looked, at your credit report? Do you even know what it says, or how to accurately read and decipher it? Far too often people end up with bad credit over mistakes and silly things – things that should be easy to fix. Not knowing what your report says won’t help you fix bad credit – you have to start at the source.
The issue with credit and knowing how to fix bad credit is that most people don’t realize the variety of items which are reported, and that items are based on actions as well as amounts. Having a lot of debt is not the only thing that will lead to bad credit.
For example, if a bad debt, no matter how small, has gone to collections, this will be reported to your report. A collection item for $200 will have the same impact to credit as a collection item for $2000. In the end, it is the action that is negative, not necessarily the amount.
Balances are also a trigger for bad credit. Even if you pay on time, every month, having a card close to its limit can lead to a drop in your score. And again, the amount doesn’t matter. A credit card with a balance too close to the credit limit is the same whether it has a $200 limit or a $2000 limit, and a credit card with a late payment is a late payment whether $10 or $1000.
When you go to the bank for credit and they say no, but can’t tell you why, they’ll likely tell you to contact Equifax or TransUnion – some banks use both, while some only use one or the other, so make sure you get your full Canadian credit report. Once you receive it, work through it, line by line, to determine how you got to where you are credit wise.
What if you receive that credit report and see that mistakes are what caused your negative standing? You need a plan to address any issues. These will not fix themselves – you will need to do something if you want them removed. Any issues addressed should be documented and any payments or letters sent should be sent by registered mail or courier.
Once issues are addressed, a resolution has to be initiated with the credit reporting agency – this process too is official and should include corresponding with the agency by registered mail or courier. Don’t leave anything to chance.
Mistakes on a credit report are one of the most frustrating problems because these large companies have huge bureaucratic processes that can be hard for the average person to navigate.
Want to learn more about how to repair bad credit or want help dealing with mistakes on your credit report? Don’t want to face those reporting agencies alone?
DebtCare knows the ins and outs and can get those mistakes removed in a timely fashion. Call us today at 1-888-890-0888.
It is almost Valentine’s Day, and that means that everywhere you look, love seems to be in your face. If you are in a relationship that is rosy, this may just put a smile on your face and make you giddy inside. If, however, you’re at the other end of the spectrum, struggling with relationship stress, this may just make you feel down in the dumps.
We are approaching the end of January, and that means that tax time is approaching. Sure, it may be a few months away, but if you still owe income tax from last year, those months can seem like minutes. Really, at this point you’re spending on borrowed time – a frozen bank account could come any day.
2016 is officially in full swing, and for many of us those New Year’s resolutions are still weighing heavily on our minds. If one of your resolutions for this year is to get your finances back on track, and you’re wondering about your options, we are here to help clear things up! This week we are getting back to the basics, talking about Ontario bankruptcy trustees and their role in bankruptcy. If this is a route you are considering, read on for some important information!
You made it through the holidays and now the credit card bills are rolling in. You went a little over your original holiday budget (don’t we all?), and now the credit cards are maxed out with no real way to pay them off. Perhaps you’ll just make the minimum payments for a while, until you’re back on your feet and feeling more secure – but will that ever happen? Do most of us actually have that extra cash each month to cover those bills? Probably not, since we wouldn’t rely so heavily on credit cards for holiday purchases if we did.
Bankruptcy is often perceived as scary – a last resort option for those that are in dire financial straits. The truth, however, is far less terrifying. Average Canadians are turning to bankruptcy as a viable debt relief solution far more often, and for good reason: it can stop collection action and stop penalties and interest. The scary part though is not knowing who to turn to, and thinking that a Canadian trustee in bankruptcy is your only option.
