Tag: bad credit score

TORONTO PAYDAY LOANS: UNLOCKING FINANCIAL FREEDOM OR PAINFUL FINANCIAL SLAVERY?

Post author By Brandon Smith
Post date December 19, 2022

Toronto payday loans

Toronto payday loans popularity

The city of Toronto is Ontario’s largest city and is home to a growing number of individuals and families who are financially strapped and in need of quick financial assistance. Payday loans, which are short-term personal loans typically used to cover unexpected expenses, are becoming increasingly popular amongst Toronto residents due to the ease and convenience of applying for this quick loan product.

Payday loans offer borrowers immediate access to capital (either the same or within 1 business day) and these cash loans can be used to cover emergency costs, such as medical bills or car repair costs, when you don’t have the money to do so otherwise. There are many payday loan lenders in Toronto, each offering different terms and conditions regarding loan amounts, repayment terms, and fees. The one thing all of these providers with their alternative payday loans have in common is that the financial solutions they offer are very pricey.

This Brandon’s Blog provides a beginner’s primer to the Toronto payday loans industry. We will analyze the associated regulations, and different loan options, and provide some practical advice.

Toronto payday loans regulations

Payday lenders are usually the first and also the last stop for those who would be unable to secure a loan through more traditional banking institutions. They are the most vulnerable so the province implemented additional regulations to further regulate this industry. The Government of Ontario has enacted regulations for payday loan services in Toronto and the rest of Ontario. It is an essential part of trying to protect consumers residing in one of Canada’s most populous provinces. These regulations are aimed at ensuring that individuals accessing this kind of short-term loan services are provided with effective consumer protection.

The city of Toronto defines Toronto payday loans lenders as any establishment providing payday loans from physical locations, or any portion thereof, operating as a payday lender as outlined in the Ontario Payday Loans Act. In 2018, the City of Toronto limited the number of permits issued to businesses that offer payday loan services, setting the cap at the number of licenses already issued by that time.

Toronto payday loans

Ontario Payday Loans Act

The Ontario Payday Loans Act, 2008, S.O. 2008, c. 9 has been established to enforce regulations on the payday loan industry in Ontario. Since its implementation, numerous amendments have been made in an effort to safeguard consumers in Ontario who utilizes payday loan services. This piece of legislation lays out the requirements for eligibility, the maximum allowable rate of interest, and various repayment plan choices.

Four key provisions of this Act are:

The borrower retains the right to settle any or all of the payday loan prior to the expiration of the loan agreement. The lender is not authorized to receive or request any part of the borrowing cost from the borrower prior to the end of the payday loan contract.
The cost of borrowing related to a payday loan agreement may be limited if the amount of the advance is $1,500 or less (or, if a different amount is prescribed, that amount or less) and, if the agreement has a duration of 62 days or less (or, if a different number of days is prescribed, that number).
A lender is permitted to levy a charge of up to 2.5 percent per month on the unsettled principal balance in the event of delinquency, not compounded unless an alternative rate has been explicitly prescribed.
A payday loan agreement should not impose any default charges upon the borrower beyond reasonable legal costs incurred by the lender in attempting to collect the required payment. A dishonoured cheque, pre-authorized debit, or other instruments of payment may incur a fee of up to $25.

The Canadian Criminal Code sets the maximum interest rate that can be charged in Canada at 60% per annum. However, payday lenders are exempt. So in spite of the federal and provincial guidelines, payday lenders in Ontario are typically authorized to collect interest of $15-$20 for every $100 borrowed. When expressed as an annual percentage rate (APR) – the same metric applied to credit cards, mortgages, auto loans, etc. – this translates to the cost of borrowing permitted being an APR ranging from 391% to more than 521%!

What other paperwork is required for making an application for Toronto payday loans?

When applying for Toronto payday loans, it is important to ensure you have all the necessary documents to submit alongside your application. These documents include:

government-issued photo identification, such as a driver’s license or passport;
a void cheque or a debit payment authorization form;
an active bank account statement with 30-60 days of account activity;
proof of where you live, such as a utility bill; and
a recent pay stub to prove your source of income and your regular income or monthly salary.

It is important to note that these documents are used to verify your identity and demonstrate your financial status.

Toronto payday loans

Toronto payday loans interest rates and fees

Payday loan interest rates and fees in Toronto can vary greatly depending on the lending institution. Credit scores play an important factor in determining the applicable rate, as each lender has their own set of policies and regulations. Alongside the interest rate, fees also are charged.

When considering Toronto payday loans, it is essential to investigate and compare the various lenders available to ensure you secure the most competitive interest rate and fees. Prior to signing any loan agreement, be sure to read it thoroughly and check that all applicable fees and interest rates are correctly stated.

The Toronto payday loans application process

If you can’t make it to one of the brick-and-mortar payday loan locations for a time of day during regular business hours, don’t fret about it. Toronto payday loans have an application process that can be easily completed through one of the many online payday lenders with payday loan online applications which can be completed with minimal effort. Simply provide one of these online lenders with your personal and financial information and they will assess your eligibility. Upon passing the approval process, access to funds can be accessed by way of transferring to your account in a timely manner.

Before beginning the application process for Toronto payday loans, it is essential to thoroughly familiarize yourself with all the applicable terms and conditions. Furthermore, it is highly recommended to plan and budget for the loan repayment in order to avoid any extra fees and charges.

Toronto payday loans

Toronto payday loans: What if I am on ODSP?

A certain group of Canadians use the convenience of quick access to short-term funds. But for those receiving Ontario Disability Support Program (ODSP) payments in Toronto, the question becomes: is it possible to apply for and receive an online payday loan?

The answer is not so simple, as many lenders have restrictions against lending to individuals receiving ODSP.

Toronto payday loans: The Canadian government survey

The Financial Consumer Agency of Canada (FCAC) performed a study on payday advance loans, producing insightful and sometimes surprising results. The survey exposed that, while cash advances are a practical method for customers to gain access to credit, they are a pricey form of loan, with a common interest rate of 546%. Moreover, fewer than 43% of respondents recognized the loan terms for this kind of financing.

The findings also indicate that a large proportion of individuals lack the financial literacy needed to make sound borrowing decisions that are beneficial to their financial situation. It has been observed that the percentage of Canadian households using these forms of debt has risen significantly in recent years, reaching 4%. Furthermore, 45% of the respondents indicated that they commonly resort to such loans to cover unexpected expenses.

Survey results showed that 41% of respondents utilized temporary payday advance loans for necessary and also predicted costs. Consider that statement. Another way of phrasing it is that 41% of the people who participated in the study said that they use payday advances to get cash for budgeted costs (although I am certain none of those individuals actually put together a budget plan). That indicates that their anticipated regular monthly expenditures are greater than the money they earn each month.

According to the survey, the majority of users of these types of loans tend to have lower to moderate incomes, with over half reporting annual incomes of under $55,000. However, it should be noted that approximately 20% of users who answered the survey stated that their household incomes were above $80,000 and 7% of respondents said they had a household income in excess of $120K.

The survey results, not surprisingly, showed that most of the users rarely looked for financial advice even when it was needed.

Toronto payday loans

Toronto payday loans: Are there alternatives?

For those with a bad credit history, a bad credit score or for whatever reason no access to traditional banking and financial institutions, payday loans are an expensive option but are normally the only option. Toronto residents have access to several alternatives which may provide a more cost-effective solution. Some of these alternatives include credit unions, installment loans and peer-to-peer lending.

Many times when people have to resort to Toronto payday loans it really means that they are experiencing serious financial difficulties. The best option, rather than taking on payday loan debt is to seek help from either a non-profit credit counselling agency or even seek a no-cost consultation from a licensed insolvency trustee.

The unfortunate truth is that Toronto is an incredibly costly city to live in. If a single person or a family is making only $55,000 a year, they are barely scraping by. No matter how much financial knowledge and understanding one has, the reality remains the same. Therefore, it is essential that we start educating children in school so they will gain an understanding of what I believe are the 3 main foundations of financial literacy:

the cost of credit;
the need for emergency savings; and
seeking professional advice for both financial opportunities or financial problems.

Tips for repaying Toronto payday loans

Payday loans can be a great way to manage your finances in a pinch, but it’s important to remember to pay them back on time. Here are five tips to help you successfully repay payday loans in Toronto:

Set a repayment date and mark it in your calendar. Knowing when your payday loan payment is due will help you plan and budget accordingly.
Make more than the minimum payment. Paying more than the minimum will help reduce the total amount of interest you pay over the life of the loan.
Pay by direct deposit whenever possible. Setting up direct deposit for your loan payments can help ensure that you never miss a payment.
Call your lender if you can’t make your payment. Most lenders will be willing to work with you to reschedule your loan payment if necessary.
Create a budget and stick to it. Developing a budget and sticking to it will help you avoid taking out more payday loans in the future.

Toronto payday loans: Instant approval of instant problems?

I hope you enjoyed this Toronto payday loans Brandon’s Blog.

Income and cash flow shortages are critical issues facing Canadians, be they employees, entrepreneurs or companies and businesses. Are you now worried about just how you or your business are going to survive? Those concerns are obviously on your mind. Coming out of the pandemic, we are now worried about its 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. 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.

We understand 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.

Brandon Blog Post

3 TOP WAYS TO SUCCEED IN CREDIT REPAIR USING A CREDIT CARD FOR REBUILDING CREDIT

Post author By Brandon Smith
Post date November 4, 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.

Credit card for rebuilding credit: Introduction

Money mistakes in the past can negatively impact your credit score and your ability to qualify for a loan or obtain a good interest rate. Fortunately, there is hope. Bad credit scores can be improved in Canada by the use of perseverance and some time. You might even qualify for a credit card for rebuilding credit in Canada.

This Brandon Blog shows you how to take control of your finances, including learning how to use a credit card for rebuilding credit to improve your credit rating.

credit card for rebuilding credit

A credit card for rebuilding credit for people with bad credit is not your first step

Getting a copy of your credit report is the best way to determine which areas need improvement when it comes to repairing your credit. How many late or missed payments have you had in the past? The credit bureaus can report past due utility payments, outstanding cell phone bills, and old parking tickets. Have you exceeded your debt utilization ratio? Did you experience bankruptcy in your past?

Could your credit report be inaccurate? This is something that needs to be brought to the creditor’s attention so that they can fix the problem and revise their reporting. As an alternative, you can provide proof to the two credit reporting agencies in Canada, so that each can correct the error.

credit card for rebuilding credit

A credit card for rebuilding credit Canada is not your next step either

Now that you know your debts need to be addressed, you need to figure out how to get your payments in order. You need to develop smart spending and saving habits to rebuild your credit score. One of the best ways to do this is to create a budget that reflects your income and expenditures. In my Brandon Blog, I have written extensively about the importance of household budgets. Budgets are essentially a plan for how you will spend your money. Following a budget will help you with having normal and current payment activity.

Getting comfortable with not overspending and living within your means should become a habit. You don’t have to give up every nice dinner or outing just because you have a budget, but you do have to be aware of how much income you have available to spend and save after taxes. This will allow you to be able to make all necessary payments on time.

Next, you must establish better credit history through consistent payments. Your payment history is the most important factor in determining your credit score, so if you’ve fallen behind on your payments – or haven’t been paying on time – your credit situation is unlikely to improve until you catch up on your accounts. Without improving on this, you cannot fix a poor credit score. Spoiler alert – making only the minimum payment each month against your regular credit card is not keeping current on that debt.

If you cannot pay your overdue accounts right now, call up your creditors. Maybe you can negotiate a special repayment plan that fits your budget. Cut your debt as much as possible. Credit utilization ratios are very important. If your various types of credit, such as credit card balance, line of credit, or overdraft are used more than three-quarters of your available credit, that will bring down your credit score.

With time, patience, and financial discipline, building a better credit history and credit score – even rebuilding credit after bankruptcy – can be done. In the beginning, you may need to only use cash, and preferably not your debit card, for all of your necessary everyday purchases. Put your credit cards away to avoid temptation. Knowing that if you do not follow your budget you will run out of money is a strong motivation to stay on track when you only take out the amount of cash your budget says you can afford to spend.

One of the first steps to rebuilding credit with a credit card might be to lock each traditional credit card away and not use them!

credit card for rebuilding credit

Prepaid Credit Cards vs. Secured Credit Cards: What’s the Difference?

Prepaid cards are sold at many retail locations, such as grocery stores and pharmacies. A service fee is charged when you load money onto the card and when you use it. So not all the money you load onto the card is applied to your purchases. Whenever you do buy something with this kind of credit card, the dollar amount of your purchase is deducted from your cash balance.

You can still get a prepaid credit card without having a good credit score. That is because by getting this type of card, you are not applying for or getting credit from anyone. To load it, you use your own money. To put money onto a prepaid card you can: (i) transfer money from your bank account onto the card; or (ii) give cash to the clerk who will add it to the card at the store that sold it to you.

Prepaid cards are not credit cards in the traditional sense, so they won’t help you build credit or repair credit. In the same vein, it is not a credit card for rebuilding credit.

One of the requirements of a secured credit card is that you need to pay a cash deposit. Once the deposit is made, the credit limit is equal to the amount of the deposit. The security deposit that you pay is collateral held onto by the credit card issuer in return for the credit they are extending to you. If you don’t repay your balance on time, the credit card company can use this security deposit to pay off your debt. Once you have paid the security deposit, you can use the secured credit card.

The normal size of payment of security deposit typically varies from $500 to $10,000. You can get a secured charge card if you do not get approved for a standard unsecured credit card. Those with a poor credit history looking for a credit card for rebuilding credit will certainly find a charge card of this kind beneficial. Secured cards do not require a credit check because the financial institution is protected by the down payment. Consequently, you are practically certain to be authorized.

You will boost your credit rating as you make purchases and repay your full balance outstanding every month with this type of card. It is because the issuer of the secured credit card is really giving you credit. Your balances as well as payment history are reported frequently to the two credit bureaus in Canada. You can enhance your credit score over time by making your full regular monthly payments when due. Any individual aiming to use a credit card for rebuilding credit should seriously look into getting a secured credit card.

credit card for rebuilding credit

Credit card for rebuilding credit: Secured credit cards vs. unsecured credit cards

There are differences between secured cards and unsecured credit cards. An unsecured credit card is a routine charge card that can be made use of day-to-day as much as the credit limit allows. The issuer of these types of traditional charge cards makes a hard credit check inquiry right into your credit report when you apply for one. An unsecured card does not need a down payment. An unsecured charge card normally has a higher credit limit, and some credit card companies offer with their unsecured cards benefits like cashback, price protection, a better interest rate on purchases or travel points.

You can ask if your secured card can be turned into an unsecured one after an amount of time (and your security deposit returned). I would say that a reasonable time period would be six months to a year of making consistent payments on time as well as staying within your credit line. You have to demonstrate that you can handle credit properly.

Credit cards, both secured and unsecured, report your activity to the credit bureaus. If you use the card responsibly, you can build or rebuild your credit. Look around carefully to find the right credit card for your financial and credit score situation that will help you rebuild your credit. Secured, unsecured, low-interest rate, travel benefits and even guaranteed approval credit cards are available from many financial institutions in Canada.

Picking the ideal credit card for rebuilding credit is really crucial. While some bank cards have an annual cost, others do not. You must constantly check out the fine print in the contract when picking a credit card. I wish you great success in your financial journey.

credit card for rebuilding credit

Credit card for rebuilding credit: Summary

I hope you found this credit card for rebuilding credit Brandon Blog post informative. Are you worried because you or your business are dealing with substantial debt challenges and you assume bankruptcy is your only option? Your situation may be so dire that a redone budget and a secured credit card may not be enough of an answer. If it is too much debt for any reason, 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 while avoiding bankruptcy. We can get you the relief you need and so deserve.

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 and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Even though we are licensed insolvency trustees, we have found that not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of 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, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation. We will get you or your business back up driving to healthy and balanced trouble-free operations and get rid of the discomfort factors in your life, Starting Over, Starting Now.

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

HOW CAN A GOOD CREDIT SCORE HELP YOU? WANT TO SAVE MONEY?

Post author By Brandon Smith
Post date March 5, 2018

HOW CAN A GOOD CREDIT SCORE HELP YOU 0 — how can a good credit score help you

How can a good credit score help you? Introduction

Many of you already know that you need a good credit score to borrow money, get a mortgage, lease a car, get insurance and in some cases, even get a job. But, how many of you know how can a good credit score help you? It can save you thousands of dollars.

How can a good credit score help you? What does your credit score say about you?

Your credit score tells prospective lenders how reliable or unreliable you are at repaying debt. Based upon your credit score you’ll be approved or denied when applying for a loan, credit card, mortgage, car lease…

How can a good credit score help you? How can your credit score save you money?

When applying for any type of loan, your credit score also determines what sort of terms you’re likely to get.

Insurance Rates: Insurers typically create an “insurance score”, which is largely based on your credit score. With a good credit score, you could qualify for a discount on your premiums. Conversely, a bad credit score can cost you a lot of money annually in higher premiums.

Loan Rates: With a good credit score you may get a better mortgage interest rate. Over the life of your mortgage this could save you thousands of dollars. The same applies for any type of loan – car loan, personal loan, etc. The more you’re borrowing and the longer the term of the loan, the more money you can save.

Internet, TV and Cell Phone Rates: Many providers do a credit check before giving you service. With a bad credit score you may be denied service altogether, or you may be required to leave a sizeable deposit as a guarantee of payment.

How can a good credit score help you? What is a good credit score?

An average credit score is around 600. A very good credit score is 700 and above.

How can a good credit score help you? Do you know your credit score?

If not you can find out by contacting either one of Canada’s two major credit reporting agencies – Equifax or TransUnion. Make a habit of checking your credit score annually. If your credit report has information that’s inaccurate or has items unfamiliar to you, it could be a sign that you’re a victim of identity theft.

If you’ve been turned down for loans due to a bad credit score, you need professional help to get back on track financially. A professional trustee can help you solve your debt problems with immediate action and a solid financial plan. Give Ira Smith Trustee & Receiver Inc. a call today to book a free, no obligation consultation and you’ll be well on your way to debt free living Starting Over, Starting Now.

how can a good credit score help you

Tags bad credit score, credit score, good credit score, how can a good credit score help you, identity theft, insurance rates, Ira Smith Trustee, loan rates, trustee

Brandon Blog Post

#VIDEO- GOOD AND BAD CREDIT LOANS REVIEW CANADA #

Post author By Brandon Smith
Post date February 8, 2017

Good and Bad credit loans: Introduction

I am always asked where can you get both good and bad credit loans. The first question I ask is how do you know you have a bad credit score? Have you checked it recently?

Last week we reviewed the new entrant to the Canadian financial marketplace, Credit Karma Canada and its service for checking your credit score for free. Right now Credit Karma Canada does not offer loan products, so it cannot help you with good and bad credit loans.

Good and Bad credit loans: First know your credit score, good or bad

This week we are reviewing another website where you can check your credit score for free, and if you wish, also use the site to get a loan product – Borrowell.com.

If you have a good credit score, you may very well qualify for a loan from Borrowell.com. If you have a bad credit score, being one below the Borrowell minimum credit score, Borrowell can’t give you a loan. In that case, they have partnered with a lender who may be able to. If you have a bad credit score, Borrowell will immediately tell you who to contact to apply for a bad credit score loan.

Good and Bad credit loans: About Borrowell

It’s never been so easy to swipe a credit card when you go shopping, but when people can’t control or manage their swiping, they will fall deep into debt. Then, they’ll have to go to their bank to borrow more money, but could face a big objection, depending on what their credit score is.

Borrowell is a Canadian company and a new breed of lender. Borrowell is in the growing group of fintech – defined as “computer programs and other technology used to support or enable banking and financial services”. Borrowell has teamed up with Equifax Canada, to allow anyone to check their credit score for free.

Checking your credit score this way, will not impact on your credit score, unlike when a lender, or potential lender, does an Equifax or TransUnion Canada credit check on you. Borrowell has also partnered up with third-party vendors, to offer financial products. Once you have checked your credit score, you can on a fairly seamless basis, apply for a personal loan for almost any purpose.

You can combine your debt, finance a purchase or borrow for your business. Borrowell has partnered with lenders for those with either good or bad credit scores.

Good and Bad credit loans: Hidden secret – Credit score, credit rating and credit report

The tool the banks use to measure creditworthiness is a person’s credit rating and credit report. But not everyone takes the time to check there’s out. You probably found out your credit rating the last time you applied for a mortgage or other loan, but have since forgotten what it was.

Regardless, time has passed and your credit rating has now changed. Here is the hidden secret. If you don’t know your credit score, you have no idea what needs improving. Once you know your credit score, you can drill down to work on what needs improving. Borrowell allows you to check your credit score for free.

“I would say anything above 650 is deemed to be a good rating” says Andrew Graham, the CEO of Borrowell.com. It’s the first lender in Canada to give free credit scores online. Proving that you are able to treat credit properly over an extended period is everyone’s goal. If you want to improve your credit score, the first and most important thing you can do is to check out where it is now at either Borrowell.com or Credit Karma Canada.

Good and Bad credit loans: Your credit score is an important number

Your credit score is an important number. One that can impact:

your ability to borrow money in the first place;
the rate of interest that you’re going to pay;
your ability to find a rental if you don’t own;
your ability to get a job;
your home mortgage rate;
your insurance policy charges; and
even your job expectations.

We have written before on these issues, including:

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Good and Bad credit loans: Don’t tense up!

Even if you think your credit rating is good, people tense up and they get really nervous and uneasy because they don’t know. People I see in our insolvency practice are always concerned about their credit rating, sometimes unnecessarily so. In fact, the people I see care more about their credit rating than the debt they can’t repay!

Whether you know or not it’s not going to change the result so I say it’s better to know than not know. You wouldn’t ignore going to the doctor if you thought something was wrong, so why ignore your finances?

Good and Bad credit loans: Hidden secret to demystify your credit score

To demystify your credit score a bit, it is on a scale from 300 to 900 and the higher the score the better. So you want to have a relatively high credit score to be assured that you get the best possible borrowing rates.

What would cause you to have a low credit score? Things such as not paying off your credit cards, if you’ve missed payments, and if you are late by 30, 60, or 90 days. That’s a big red flag, because again your credit score reflects how likely is this person to make their payments that they signed up to or not.

If you have a large unused credit ability, say you have five charge cards each with a $10,000 limit, but you pay it off every single month you’d think that would produce a good credit rating. However, the lenders will say, you can get into trouble really quickly. So if you have a lot of charge cards, you should focus on reducing the number you have open and reduce it to just a few.

Can I use a good credit rating to my advantage? Can I negotiate better interest rates? Yes, absolutely. They’ll know, so they’ll have an idea about your ratings and offer you pretty good terms, but you can certainly negotiate. If you’re a renter, you know when you’re dealing with potential landlords, if everything about you is the same as everyone else, except for your credit score, and yours is poor compared to another applicant, the rental will go to the other applicant.

Good and Bad credit loans: It doesn’t have to be like that forever

Does your credit rating stay with you eternally? If I was a broke student and racked up indebtedness, is that still going to affect me in my forties? Probably not. What happens is your rating will change as your circumstances change. So as long as you set up a record of responsible credit behavior, even if circumstances were really bad a very long time ago, you probably can still have a really good credit rating.

So it all starts with knowing your credit score and Borrowell.com can help you. Once you know the credit score, the secret to getting that loan you need at a reasonable price is to first do the things you need to do to improve your credit score. But even with a bad credit rating, Borrowell.com, through one of its partners, may still be able to get you that bad credit loan.

Good and Bad credit loans: Hidden secret to fix the problem without more debt

Our final hidden secret is to let you know that normally, more debt will not fix your problems. You need to find out why you have a bad credit score, why you cannot use your existing income to pay your bills and debts and why you need to borrow more money. We can help you unlock all those answers, and unlock the hidden secret for you to get your life back on track.

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.

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Brandon Blog Post

BAD CREDIT HAS COSTS – IMPROVE YOURS NOW!

Post author By Brandon Smith
Post date June 10, 2014

Bad credit makes it impossible for you to get the credit you need in order to live your lifestyle. Making payments late or missing payments will result in a bad credit score. There is the possibility that your credit rating can be ruined even if you don’t do anything wrong.

Credit is something we take for granted but it can affect every aspect of our lives. Open your wallet and count the number of credit cards in it. Do you have a mortgage? Car loan or car lease? Bank loan? What do they all have in common? Credit. So you see, you cannot afford to have bad credit.

How can a bad credit score cost you money?

Anytime you apply for financing your credit rating is checked. If you have an excellent credit score you will pay less interest than someone with a moderate credit score. Over the term of your loan a less than stellar credit score can cost you thousands of dollars, particularly with a mortgage. Or, if your credit rating is poor, you may be refused financing. Too many potential credit grantors checking your credit score actually worsens your credit rating. If it is a poor credit score to start with, then too much checking pushes you that much closer to having bad credit.
Did you know that a poor credit rating can affect your car insurance premiums? Car insurance companies sometimes consider people with bad credit as high risk drivers. Having a poor credit rating can cost your hundreds of dollars per year in car insurance premiums.
Credit card debt can cost you up to 20% in interest.

Other ways that bad credit can affect you?

Some landlords and property management companies run credit checks when you apply for a rental unit and will not rent to people with bad credit. A bad credit score may result in you being denied housing.
You may not be able to turn on utilities in your name if you have a bad credit score or you did not pay your utilities in a timely fashion previously.

With bad credit, but with the need to obtain more credit to meet your expenses, it will force you to look for bad credit loans online, payday loans or brick and mortar bad credit loan companies. These lenders advertise guaranteed bad credit personal loans and take advantage of and attack the already vulnerable with their lending practices and high cost loans.

Order a copy of your credit report from Equifax or TransUnion. Bad credit can be repaired with professional help and a plan so that you can be Starting Over, Starting Now. There are several bankruptcy alternatives that can be used for people with bad credit needing help and avoid bankruptcy. Contact Ira Smith Trustee & Receiver Inc. today, get your life back on track.

Brandon Blog Post

CREDIT REPORT: CHECK IT TO IMPROVE A POOR CREDIT SCORE OR A BAD CREDIT SCORE

Post author By Brandon Smith
Post date May 6, 2014

Have you checked your credit report lately? Everyone I know does not wish to have either a poor credit score or worse, a bad credit score, but many Canadians pay little or no attention to their credit report and that’s a mistake that can seriously impact your life.

According to the Public Interest Advocacy Centre:

17% of Canadian adults had checked their credit reports in the prior three years
Of those who checked, 18% found inaccuracies in their credit reports
10% believed they were denied access to financial services because of report inaccuracies

In fact, some credit bureau watchers estimate that there are errors in 10% to 33% of credit files. You may be surprised to know that one of the biggest sources of conflict isn’t fraud, it’s cell phone providers who send overdue accounts to collection. We reported on one such story in a blog titled Your Credit Rating Can Be Ruined Even If You Don’t Do Anything Wrong. Mr. Dave Johnson of Pembroke, Ontario had his credit rating ruined by Rogers even though he never had a Rogers account and he has spent three years fighting a Rogers Bill that isn’t his. “That one derogatory record has a substantial impact on credit score and it stands out on the credit report,” says Tim Ashby, a vice-president of personal solutions for Equifax. If your credit is not in good standing you will most likely be denied a loan or mortgage. It can also affect your ability to rent housing or get hired for a job.

How often should I check my credit report?

According to the Financial Consumer Agency of Canada, check your credit report at least once a year. Review it carefully for errors and signs of identity theft. Order your credit report from both credit reporting agencies. Consider requesting your report from one agency and then waiting six months before you order from the other agency. By spacing out your requests in this way, you may be able to detect any problems sooner.

Who are the credit reporting agencies and how can I contact them to get my credit report?

The credit reporting agencies are TransUnion and Equifax. By clicking on the links you will be taken to their websites where you can access their phone numbers, fax and email in addition to information on how you get your credit report.

Should you discover that you have a poor credit score or a bad credit score, you may need professional help to return to financial health. Ira Smith Trustee & Receiver Inc. is a full service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Contact us today.

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