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- How to improve credit score: The Financial Consumer Agency of Canada alert
- How to improve credit score: Beware of credit repair firms
- How to improve credit score: What you should do before starting to repair your credit
- How to improve credit score: What the FCAC financial literacy leader warns
- How to improve credit score: Beware of credit repair firm tricks of the trade
- How to improve credit score: What the Canadian government advises you to do
How to improve credit score: The Financial Consumer Agency of Canada alert
The Financial Consumer Agency of Canada (FCAC) is alerting people who could no longer stay current with their debt payments to be mindful when looking how to improve credit score.
Some businesses are misleading consumers by guaranteeing quick and easy solutions to help settle their financial debt or improve credit score. In many cases, consumers could wind up in a worse economic scenario compared to before they got aid.
How to improve credit score: Beware of credit repair firms
It’s crucial to understand that these firms:
- cannot make sure they will solve your debt problems
- could not swiftly and quickly repair your credit rating
- need to not motivate you to get a high-interest loan as a service until other loan alternatives are available
How to improve credit score: What you should do before starting to repair your credit
Before registering for help to repay debt or repair or improve credit score, customers need to:
- get suggestions from various reputable sources such as an accredited financial consultant, an approved credit counsellor or a licensed insolvency trustee
- do inquiries and compare options
- never be pressured to register right away
- check out the small print and recognize the conditions before authorizing a contract or an arrangement
- when seeking information on insolvency options, ask “Are you a licensed insolvency trustee?” Only a licensed insolvency trustee can administer options such as consumer proposals and bankruptcies.
How to improve credit score: What the FCAC financial literacy leader warns
Jane Rooney, Financial Literacy Leader, FCAC warns:
“It’s important for consumers to understand what companies can and can’t do when offering services to help with debt repayment or credit repair. The Financial Consumer Agency of Canada has information to help consumers better understand the types of services available to them and where to get help. Having the necessary information is the first step to empowering consumers to make informed decisions and meet their financial challenges head on.”
How to improve credit score: Beware of credit repair firm tricks of the trade
Some firms or agencies declare that they can swiftly fix your credit report. It’s difficult to change or erase info that’s part of your credit rating, unless a detail is incorrect. Improving your credit history will take some time. You need to prove that your credit practices have enhanced by repaying your financial obligations on time.
Some firms could likewise offer you a loan suggesting it will certainly aid in fixing your credit history. The firm could assert that making timely payments on this loan will repair your credit report. When you sign up for this type of loan, you never in fact receive any cash because the company will tell you the financing will cover its services or programs. Rather, you make normal payments to the company to pay off the loan.
Be aware; this type of loan generally has a high rate of interest. This solution does not help cut any of your other financial obligations. You are required to keep making your payments on any other financial debts you owe. You could only be left with even more debt and no change to your credit rating.
How to improve credit score: What the Canadian government advises you to do
The Canadian government recommends that you speak to a licensed insolvency trustee. Although the challenges are enormous, they are not insurmountable. If you and your spouse have too much debt because of financial infidelity or for any other reason, you need to contact a licensed insolvency trustee (LIT) now. Through financial counselling, a LIT can aid in getting the resources you need to fix the root causes of the financial infidelity and to deal with the debt that you and your spouse cannot repay.
You need the Ira Smith Team. We’re experts in dealing with debt. No matter how you got into difficulty we can help return you to financial well-being. Contact us today and free yourself of debt Starting Over, Starting Now
