Tag: bills on time

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Brandon Blog Post

EQUIFAX CREDIT SCORE RESET TO ZERO? GTA DEBT RELIEF EXPERT REVEALS HIDDEN TRUTH

Shocked person looking at smartphone displaying Equifax credit score of zero - Toronto debt relief help available

Are you struggling with debt in Toronto, Vaughan, Newmarket, Mississauga, or anywhere else in the Greater Toronto Area? Your Equifax credit score might be telling a story you didn’t expect. As a licensed insolvency trustee serving the GTA, I’ve seen how credit score surprises can impact families when they need financial help most.

What is an Equifax Credit Score?

Your Equifax credit score is a three-digit number between 300 and 900 that represents your creditworthiness to Canadian lenders. Think of it as your financial report card—it tells banks, credit card companies, and other lenders how likely you are to pay back money you borrow.

Why Equifax Canada matters:

  • One of the two major credit bureaus (along with TransUnion)
  • Used by most major Canadian banks and lenders
  • Influences your ability to get mortgages, car loans, and credit cards
  • Affects the interest rates you’ll be offered

Understanding Equifax Credit Score Ranges

Here’s what your Equifax credit score means:

  • 800-900 (Excellent): You’ll get the best rates and terms
  • 720-799 (Very Good): Strong credit with good loan options
  • 650-719 (Good): Average credit, decent loan terms available
  • 560-649 (Fair): Below average, higher rates and fewer options
  • 300-559 (Poor): Difficulty getting approved for credit

The reality for GTA residents: If you’re struggling with debt, your score might be in the fair or poor range. But here’s the shocking truth—sometimes even people with good financial habits face unexpected credit score problems.

The Shocking Truth About Equifax Credit Scores in Canada

Your Equifax credit score is more than just a number—it’s your financial passport in Canada. But what happens when that passport gets taken away without warning?

David Tregear from Victoria, BC, thought he was doing everything right. He paid his bills on time and lived debt-free for two years. Then he applied for a car loan and got rejected. When he checked his Equifax credit score, he couldn’t believe what he saw: ZERO. Not a low score—completely erased.

This isn’t a one-off story. It’s happening to Canadians across the country, including right here in the GTA.Shocked person looking at smartphone displaying Equifax credit score of zero - Toronto debt relief help available

How Your Equifax Credit Score Can Disappear (And Why It Matters)

Here’s what Equifax Canada doesn’t tell you: if you don’t use credit for about two years, they can reset your credit score to zero. No warning. No second chances. You become “unscorable.”

Why this matters for GTA residents:

  • Many Toronto-area lenders use Equifax Canada as their primary credit bureau
  • A missing Equifax credit score can block you from getting a mortgage, car loan, or even a credit card
  • TransUnion (the other major credit bureau) doesn’t have this same policy
  • Your financial options can disappear overnight

How to Access Your Equifax Credit Score

Online Access (Easiest Method):

  • Visit Equifax.ca and create a free account
  • Use the Equifax Canada mobile app for quick checks
  • Get one free credit report per year, plus monthly score updates with paid plans

Other Access Methods:

  • By phone: Call 1-800-465-7166
  • By mail: Send a written request to Equifax Canada
  • In-person: Visit Equifax Canada offices (limited locations)

For GTA residents: Online access is fastest, but if you’re dealing with serious debt issues, sometimes speaking to someone directly helps clarify your options.Shocked person looking at smartphone displaying Equifax credit score of zero - Toronto debt relief help available

Factors That Influence Your Equifax Credit Score

Understanding what affects your score helps explain why it might be low, or why it disappeared entirely:

Payment History (35% of your score)

  • Late payments hurt your score significantly
  • Missing payments for 30+ days show up on your report
  • Bankruptcy and consumer proposals appear here, too

Credit Utilization (30% of your score)

  • How much of your available credit are you using
  • Using more than 30% of your credit limit hurts your score
  • Maxed-out credit cards are major red flags

Length of Credit History (15% of your score)

  • How long have you had credit accounts
  • Average age of all your accounts
  • This is where the “unscorable” problem happens—no recent activity can reset your score

Types of Credit (10% of your score)

  • A mix of credit cards, loans, and mortgages
  • Shows you can handle different types of credit

Credit Inquiries (10% of your score)

  • Hard inquiries from loan applications
  • Too many inquiries in a short period hurt your score

The debt connection: When you’re overwhelmed by debt, multiple factors work against you—high utilization, missed payments, and desperate applications for more credit.

When Debt Problems Meet Credit Score Problems

As a licensed insolvency trustee in the GTA, I see clients facing double trouble: overwhelming debt AND damaged credit scores. Here’s what I’ve learned:

The Debt-Credit Score Cycle

When you’re drowning in debt, you might think avoiding credit is smart. But if your Equifax credit score gets reset to zero, rebuilding becomes nearly impossible. You can’t get approved for new credit to rebuild your score.Shocked person looking at smartphone displaying Equifax credit score of zero - Toronto debt relief help available

Comparing Equifax with TransUnion: Why It Matters

Key differences between Canada’s credit bureaus:

Scoring Models

  • Equifax: Uses a 300-900 range, focuses heavily on payment history
  • TransUnion: Also 300-900 range, but weighs factors slightly differently
  • Your scores may differ between bureaus based on which lenders report to whom

The “Unscorable” Problem

  • Equifax: Can reset your score to zero after about 2 years of inactivity
  • TransUnion: Doesn’t have the same reset policy
  • Result: You might be scoreable on one bureau but not the other

Lender Preferences

  • Some GTA financial institutions prefer Equifax
  • Others use TransUnion
  • Many check both, but if one shows “unscorable,” you might be denied

Why this matters for debt relief: When considering consumer proposals or other debt solutions, we need to understand which bureau lenders will check and plan accordingly.

How to Get Your Free Equifax Credit Report

Step-by-Step Guide:

  1. Visit Equifax.ca and click “Get My Free Credit Report.”
  2. Verify your identity with personal information
  3. Answer security questions based on your credit history
  4. Review your report carefully for accuracy
  5. Download or print for your records

Protecting your information:

  • Only use the official Equifax.ca website
  • Never give your SIN over unsolicited phone calls
  • Review reports regularly for identity theft signs
  • Dispute errors immediately

Red flag for GTA residents: If you can’t access your report online or get “insufficient information” errors, you might be facing the “unscorable” problem.Shocked person looking at smartphone displaying Equifax credit score of zero - Toronto debt relief help available

Tools for Improving Your Equifax Credit Score

If You Can Still Get Credit:

  • Pay bills on time: Set up automatic payments
  • Lower credit utilization: Keep balances under 30% of limits
  • Don’t close old accounts: Length of history matters
  • Limit new applications: Each inquiry temporarily lowers your score

If You’re Struggling with Debt:

  • Don’t ignore the problem: Credit scores recover faster than you think with proper help
  • Consider debt consolidation: One payment instead of many
  • Explore the consumer proposal process: Can eliminate up to 80% of debt while protecting assets
  • Understand bankruptcy options: Sometimes it’s the fastest path to rebuilding credit

Premium Equifax Services

Equifax Complete™ Family Plan:

  • Monthly credit score updates
  • Credit monitoring and alerts
  • Identity theft protection
  • Costs around $25-35/month

Equifax ID Patrol™:

  • Advanced identity monitoring
  • Dark web scanning
  • Recovery assistance if identity is stolen

My recommendation for debt-struggling families: Free credit reports are sufficient while you’re getting your finances back on track. Save the monthly fees for debt payments instead.

The Role of Credit History in Your Financial Recovery

How Long-Term Credit Behaviour Affects Your Options

Good credit history before debt problems:

  • Makes you a better candidate for debt consolidation loans
  • Can help negotiate better terms with creditors
  • Provides more options for financial recovery

Poor credit history:

  • Doesn’t disqualify you from debt relief options
  • Consumer proposals work regardless of credit score
  • Bankruptcy in Ontario provides fresh start opportunities

The “unscorable” situation:

  • Creates unique challenges but doesn’t eliminate options
  • May require secured credit cards to rebuild
  • Licensed insolvency trustees can provide specific guidance

Real Stories from GTA Clients

I’ve helped families in Toronto, Vaughan, Newmarket, Scarborough, Brampton, and North York who discovered their Equifax credit score issues only when applying for debt consolidation loans. By then, their options were limited, but never eliminated.

Your Equifax Credit Score and Debt Solutions: What You Need to Know

Consumer Proposals and Your Credit Score

If you’re considering a consumer proposal in Ontario, here’s how it affects your Equifax credit score:

  • A consumer proposal shows as an R7 rating on your Equifax credit report
  • This stays on your report for 3 years after completion
  • It’s better than bankruptcy (R9 rating), which stays for 6-7 years
  • You keep your assets while getting debt relief

Bankruptcy and Credit Rebuilding

For some GTA residents, bankruptcy is the best fresh start option:

  • First-time bankruptcy typically lasts 9 months in Ontario
  • Your Equifax credit score will rebuild faster than you think
  • We help clients understand the credit rebuilding process from day oneShocked person looking at smartphone displaying Equifax credit score of zero - Toronto debt relief help available

Protecting Your Equifax Credit Score: Practical Tips for GTA Residents

Monitor Your Score Regularly

  • Check your Equifax credit score every few months
  • Look for the “unscorable” warning before it’s too late
  • Keep one small credit account active if you can manage it responsibly

Know Your Rights

  • Equifax Canada must investigate disputes within 30 days
  • You can add a consumer statement to your credit file
  • Provincial and federal agencies can help with serious issues

Don’t Wait Until It’s Too Late

If you’re struggling with debt in Toronto, Vaughan, Mississauga, Markham, or anywhere in the GTA, don’t wait for credit problems to compound your debt problems.

Red Flags: When to Seek Help with Debt and Credit Issues

Contact a licensed insolvency trustee if you’re experiencing:

  • Minimum payments that barely cover interest
  • Using credit cards for basic expenses like groceries
  • Considering payday loans or high-interest alternatives
  • Credit applications are being denied due to debt levels
  • Stress about money is affecting your daily life

How We Help GTA Residents Navigate Debt and Credit Challenges

As your local licensed insolvency trustee, I provide:

Free Consultations

  • Review your complete financial situation
  • Explain how debt solutions affect your Equifax credit score
  • Discuss all options before you make any decisions

Personalized Debt Solutions

  • Consumer proposals that can reduce debt by up to 80%
  • Bankruptcy protection when it’s the right choice
  • Credit rebuilding guidance throughout the process

Local GTA Knowledge

  • Understanding of Ontario employment standards and exemptions
  • Connections with local credit counselling services
  • Knowledge of the GTA housing market impacts on financial decisionsShocked person looking at smartphone displaying Equifax credit score of zero - Toronto debt relief help available

The Bottom Line: Don’t Let Credit Score Confusion Add to Your Debt Stress

Your Equifax credit score is important, but it shouldn’t control your life. Whether your score is perfect, damaged, or mysteriously missing, there are always options for Canadians struggling with debt.

David Tregear’s story shows us that even people who think they’re doing everything right can face credit surprises. Don’t let debt problems and credit score issues compound each other.

Frequently Asked Questions About Equifax Credit Scores and Debt

How do debt problems relate to Equifax credit score problems?

Debt problems and low Equifax credit scores often form a difficult cycle. When overwhelmed by debt, individuals may miss payments (hurting payment history), use a high percentage of their available credit (increasing utilization), and potentially apply for more credit, leading to multiple inquiries. If, in an attempt to manage debt, someone stops using credit entirely for about two years, their Equifax score can reset to zero, making it almost impossible to rebuild credit through conventional means.

Can a consumer proposal improve my Equifax credit score?

A consumer proposal will initially lower your Equifax credit score, but it provides a clear path to rebuilding credit while eliminating unmanageable debt.

How long does it take to rebuild credit after bankruptcy?

Most clients see their Equifax credit score improve within 12-18 months of discharge with proper credit rebuilding strategies.

Should I check my Equifax credit score if I’m already in debt trouble?

Yes. Understanding your current credit situation helps determine the best debt relief strategy for your specific circumstances.

Can I get a mortgage in the GTA after a consumer proposal?

Many clients successfully obtain mortgages 1-2 years after completing a consumer proposal, often with better terms than they had while struggling with debt.

Take Action Today

If you’re a GTA resident dealing with overwhelming debt, don’t wait for your credit situation to get worse. As a licensed insolvency trustee serving Toronto, Mississauga, Brampton, Markham, and surrounding areas, I’m here to help you understand your options.

Free consultation available:

  • No obligation to proceed
  • Complete review of your debt and credit situation
  • Clear explanation of how debt solutions affect your Equifax credit score
  • Practical next steps you can take immediately

Remember: Your current financial situation doesn’t define your future. With the right help and information, you can overcome both debt challenges and credit score problems.

As a licensed insolvency trustee serving the Greater Toronto Area, I encourage consumers and business owners to view financial difficulties not as failures but as challenges that can be addressed with proper guidance. By understanding the warning signs of insolvency and seeking professional advice early, many people and businesses can find a path forward – whether through restructuring, strategic changes, or in some cases, an orderly wind-down that protects their future opportunities.

Remember: The earlier you seek help for company insolvency concerns, the more options you’ll have.

If you or someone you know is struggling with too much debt, remember that the financial restructuring process, while complex, offers viable solutions with the right guidance. As a licensed insolvency trustee serving the Greater Toronto Area, I help entrepreneurs understand their options and find a path forward during financial challenges.

At the Ira Smith Team, we understand the financial and emotional components of debt struggles. We’ve seen how traditional approaches often fall short in today’s economic environment, so we focus on modern debt relief options that can help you avoid bankruptcy while still achieving financial freedom.

The stress of financial challenges can be overwhelming. We take the time to understand your unique situation and develop customized strategies that address both your financial needs and emotional well-being. There’s no “one-size-fits-all” approach here—your financial solution should be as unique as the challenges you’re facing.

If any of this sounds familiar and you’re serious about finding a solution, reach out to the Ira Smith Trustee & Receiver Inc. team today for a free consultation. We’re committed to helping you or your company get back on the road to healthy, stress-free operations and recover from financial difficulties. Starting Over, Starting Now.

The information provided in this blog is intended for educational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are encouraged to seek professional advice regarding their specific situations. The content should not be relied upon as a substitute for professional guidance or consultation. The author, Ira Smith Trustee & Receiver Inc., and any contributors do not assume any liability for any loss or damage.Shocked person looking at smartphone displaying Equifax credit score of zero - Toronto debt relief help available

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Brandon Blog Post

BILL PAYMENT DIFFICULTIES? OUR COMPLETE ROADMAP TO GET CANADIANS SAFELY THROUGH THEIR FINANCIAL DIFFICULTIES

bill payment

Bill payment introduction

Today’s Brandon’s Blog discusses practical ways to take care of financial challenges connected to bill payment in Canada. As the economic climate develops and interest rates keep rising, it’s vital to have a trusted expenditure technique to adhere to. Current research from TransUnion, a Canadian credit bureau, highlights the significance of financial management.

According to the Q1 2023 Customer Pulse study by TransUnion, virtually one-third of Canadian homes checked are facing more difficult times with money, with the rising cost of living being the primary contributing factor.

It can be frustrating to always try to catch up to rising prices, particularly when faced with unanticipated financial setbacks. Juggling all your payments, such as utilities, rent, food and credit cards, can trigger anxiety and stress. Nonetheless, with the ideal knowledge and devices, it’s possible to get rid of these obstacles and reclaim control over your finances and also enhance your general well-being.

Join me as I check out the different techniques you can embrace to effectively manage your bills. I will provide you with detailed advice on developing efficient approaches to bill payment so you can stay clear of late payment penalties.

Financial stability incorporates more than just paying your bills on time. It involves creating healthy financial practices, boosting budgeting skills, and producing a solid foundation for future financial success. This Brandon’s Blog will certainly also delve into these aspects, supplying recommendations on just how to achieve lasting economic stability.

Whether you are a consumer struggling to keep current with all your regular monthly costs or an entrepreneur facing expense management challenges, this information is for you.

So, if you are ready to take control of your expenses and gain back financial stability, stay tuned and don’t go anywhere.

Understanding the challenges of bill payment

The Canadian economy is constantly evolving, influenced by both domestic and global factors. As we navigate through unprecedented times, understanding the current economic landscape in Canada is critical for individuals, businesses, and policymakers alike. Key components of the current Canadian economy, such as GDP growth, inflation, employment rates, and trade all influence how well off we feel. Layer on top of that the impact of the COVID-19 pandemic on the Canadian economy, and the measures that the government took to address the crisis.

All of this combined affects our comprehensive understanding of the state of the Canadian economy, and how it may affect your personal or professional life. Suffice it to say that economists do not agree on the current state of Canada’s economic landscape and whether or not the Bank of Canada should keep raising interest rates.

Canadians are not the only ones affected by bill payment problems. Here is a small sample of issues that were reported in the media last week:

  • Twitter faces lawsuits over alleged non-payment for office services in four countries.
  • New South Wales energy bill relief for struggling families trying to make regular payments.
  • Australian Telcos must offer financial hardship assistance.
  • Low-income Tulsa households are now eligible for federal assistance with their water bills and sewer bills.
  • Millions of Aussies have been placing buy now, pay later (BNPL) payments ahead of their other monthly obligations, according to new research. Around two in five (43%) Australians used a BNPL account in the past six months, a Finder survey of 1,090 respondents revealed.

Bill payment problems can impact the financial security of individuals and their households. Failure to make on-time payments results in extra charges, which can cause serious emotional stress. In addition, missing out on payments will negatively influence your credit score.

For family members, bill payment issues can result in heightened tension as they try to manage their expenditures and make ends meet. This can cause relationship stress, as money worries are a usual reason for arguments.

To alleviate these concerns, households need to develop a spending plan to ensure that they can first understand what their income (net of tax obligations) is, as well as what their essential and non-essential expenses are. It is just after that can any individual appropriately understand exactly how to deal with bill payment concerns.bill payment

Identifying the root causes of bill payment issues

There can be many root causes of bill payment issues. Here are some usual ones:

Financial restrictions: Among the key factors for bill payment problems is financial problems. If an individual is facing financial restraints, they will struggle to have enough money to make all bill payments on time every month, resulting in postponed payments.

Lack of budgeting: Poor or no budgeting or financial planning can contribute to bill payment problems. If individuals don’t properly budget adequate funds for expenses or prioritize their expenditures correctly, they will struggle to pay their bills on time.

Unforeseen costs: Unanticipated costs, such as emergency vehicle repairs, can interrupt a person’s financial security and also make it meet all bill payment dates. These unanticipated situations can trigger short-term money strain.

Inadequate income: Insufficient income makes it impossible for individuals to cover their regular monthly costs. If somebody’s earnings are inadequate to satisfy their financial responsibilities, they will have bill payment problems.

Incorrect invoicing or disagreements: In some cases, bill payment issues result from mistakes in the invoices or disagreements regarding what the cost of a particular item should have been. This is the easiest one to fix, assuming you have proof that you have been improperly billed. This also assumes that you have enough cash on hand to immediately pay off the right amount owing.

Lack of organization: Poor financial habits or disorganization can add to bill payment issues. If people fail to keep track of their expenses, due dates, and what is owed, they might overlook or neglect to make timely payments.

Communication issues: Lack of clear and timely communication between service providers and customers can lead to payment problems. Misconceptions, hold-ups in getting bills, or failure to inform customers concerning when payment is expected can add to bill payment troubles.

Change in personal conditions: Life events such as job loss, divorce, or moving can disrupt a person’s financial security and lead to bill payment problems. Modifications in personal circumstances can cause what is hoped to be only temporary bill payment problems.

Procrastination or carelessness: Often, bill payment problems happen due to laziness or carelessness. Individuals might delay bill payments or neglect them totally, bringing about late payment fees. At its worst, this can lead to service disruptions.

It is very important to keep in mind that the root causes of bill payment problems can vary depending on a variety of issues. Addressing these reasons frequently calls for proactive financial planning, budgeting, proper communication and regular ongoing review to make sure that your bills are paid on schedule.

Strategies for effectively managing your bills

Over the years, I have written many articles on various strategies for taking charge of your finances to avoid financial problems. Most recently, it was discussed in Brandon’s Blog “UNDERSTANDING AND OVERCOMING FINANCIAL STRESS: A COMPREHENSIVE GUIDE TO GET FROM WORRIED TO WELL-PREPARED”.

Here are some strategies for helping with bill payments. The following list is not mutually exclusive:

Importance of budgeting in bill payment

Handling bill payments efficiently demands making use of budgeting, an essential tool. Budgeting offers individuals an extensive understanding of their earnings and expenses, enabling them to allot funds appropriately. By creating a budget, people can prioritize their expense repayments, making sure that essential costs are paid on time.

This technique does not just help in avoiding late payments, fees, as well as added interest charges. It also facilitates the identification of non-essential expenditures that can be lowered or gotten rid of entirely. This, in turn, lets you make the most of your funds for what is essential and what isn’t. Welcoming this proactive approach to financial planning is important for recovering your financial security.

Prioritizing bills and negotiating payment plans

Handling your funds properly includes the important job of prioritizing expenses and even negotiating extended payment plans with certain creditors to allow for reduced payments over time to pay off an outstanding balance in full. It’s important to recognize which costs hold the highest possible priority to prevent undesirable repercussions like late fees or a negative effect on your credit rating. Setting up an alternative payment plan with certain creditors may just be what is needed to give you some breathing room.

Once you’ve established what are the most essential expenses, participating in conversations with creditors and getting certain payment plan extensions will relieve your financial stress and anxiety. Clear communication with creditors is essential to finding remedies that benefit both of you. Being transparent about your financial constraints and actively looking for resolutions are very important actions to take. By prioritizing bills and masterfully discussing payment plans, individuals can reclaim control over their finances and stay away from more dangerous financial pitfalls.

Increase your income with a side gig to help with bill payment

It is critical to discover extra income possibilities if you come up short each month in your bill payment. Technical innovations and the surge of side gigs make it very common for people to supplement their income with a side gig. Examples of these alternate income opportunities include freelancing, online tutoring, and running an e-commerce site.

When considering different additional income opportunities, it is very important to examine one’s skills and interests to recognize suitable opportunities. Expanding income streams not only supplies security but also fosters personal development. By welcoming different revenue sources, people can take control of their financial future and chart a much more interesting career path.

Increase your financial literacy through local community resources

When dealing with difficulties with paying your bills, don’t overlook what may be available in your local community resources. There may be free or very low-cost help for you. Community centres regularly run programs or workshops on monetary management, budgeting, and financial literacy. Joining these programs can outfit people with the necessary skills to handle their bills efficiently and regain their financial confidence.

Moreover, social services may give financial help to those in need. By utilizing these resources, Canadians can get the essential support to overcome their bill payment obstacles to get into a better financial state. It is essential to make use of these local resources to develop a solid foundation for financial well-being.

Use technology to get the best cost savings

In today’s digital world, the application of modern technology like apps to save money has ended up being important for people. Price comparison tools and budgeting apps are valuable resources that make it easier than ever to monitor expenditures and make educated choices. These devices not only help recognize the very best offers, but they also supply information on your spending behaviours, letting you save substantial amounts of money and streamline your purchasing and spending patterns.

By staying updated with the huge array of available apps and modern technologies, people can remain competitive with up-to-date information on prices and spending patterns. Incorporating these devices into day-to-day routines and financial monitoring practices people can maximize cost savings and optimize financial outcomes in today’s vibrant marketplace.bill payment

Bill payment: Additional resources and support for Canadians facing bill payment challenges

For those whose financial situation is direr and they need more than just implementing the above tips, I have written many of Brandon’s Blogs incorporating the topics such as:

  • Common traps to avoid such as payday loans, credit card debt, impulse spending and lack of financial education or financial literacy.
  • Debt consolidation
  • Debt settlement
  • Credit counselling
  • Consumer proposal
  • Bankruptcy

I won’t repeat them here but you do not have to go any further than last week’s Brandon’s Blog: “DEBT RELIEF OPTIONS: OUR COMPREHENSIVE GUIDE FOR IDENTIFYING RELIABLE DEBT ADVICE” to read all about it.

Overcoming bill payment challenges requires effective strategies and practical tips. It is crucial to manage bills efficiently to regain financial stability. By prioritizing expenses, creating a budget, and exploring payment assistance programs, Canadians can overcome their bill payment difficulties. It is also important to communicate with creditors and explore alternative payment options. Seeking professional advice and support from financial advisors or credit counselling agencies can provide valuable guidance during this process. With determination and proper financial management, Canadians can overcome their bill payment challenges and work towards a more stable financial future.

Encouragement and support for Canadians facing bill payment difficulties

When people encounter difficulties with bill payments, it is important to employ reliable methods and functional tips to deal with those circumstances. Proper management of expenses plays a crucial function in bringing back financial security. Canadians can manage their bills successfully by prioritizing expenses, developing a budget, and exploring other assistance programs available to them.

Furthermore, open interaction with creditors, as well as the exploration of different repayment alternatives, are essential steps to take. Seeking specialist advice as well as support from financial and debt experts can provide beneficial advice throughout. With persistence as well as correct financial planning, Canadians can overcome their bill payment obstacles and work in the direction of a much more safe and more secure financial future.

Bill payment conclusion

I hope you enjoyed this bill payment Brandon’s Blog. Problems with making ends meet are a growing concern in Canada, affecting individuals of all ages and income levels.

Creating a solid financial plan can be the key to unlocking a brighter and more prosperous future. By taking control of your finances, you can prioritize your expenses, set clear financial goals, and build a strong foundation for your dreams to come true. With the right mindset and approach, financial planning can empower you to regain control, eliminate this issue as a source of stress in your life and find peace of mind.

Individuals must take proactive measures to address financial difficulties and promptly seek assistance when necessary. It is crucial to recognize that financial stress is a prevalent concern and seeking help is a demonstration of fortitude, rather than vulnerability. Should you encounter challenges in managing your finances and find yourself burdened by stress, do not delay in pursuing aid.

Revenue and cash flow shortages are critical issues facing people, entrepreneurs and their companies and businesses that are in financial distress. 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.

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 and it does not mean that you are a bad person. 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 uses innovative and cutting-edge methodologies, to adeptly navigate you through the intricacies of your financial challenges, ensuring a resolution to your debt-related predicaments without resorting to the rigours of the bankruptcy process. 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.bill payment

 

 

Categories
Brandon Blog Post

LOWEST CREDIT SCORES RATING: THESE CANAD1ANS LED GIGANTIC CREDIT CARD DEBT REPAYMENT

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.

Canadians with the lowest credit scores rating led a wave of pandemic credit card debt repayment

Statistics Canada reported on August 23, 2021, that Canadians with the lowest credit scores rating repaid the most credit card debt in the first year of the pandemic. Over the period of the pandemic to January 2021, the mortgage debt of Canadian households increased by a record amount of $99.6 billion, driven by rising home prices, especially for single-family houses. Over the same period, non-mortgage debt fell by a record $20.6 billion, mainly due to a $16.6 billion decline in credit card debt.

In this Brandon Blog, I look at the area of people with credit scores rating and discuss how and why these lowest credit scores rating Canadians were able to pay down their high-interest debt.

Credit scores rating: Credit report and score basics

Credit scores are three-digit numbers derived from your credit report. An individual’s credit report summarizes their Canadian credit history. The Canadian credit reporting bureaus are Equifax Canada and TransUnion Canada. These private companies are credit reporting agencies that collect, store, and share information about how you use credit. As your credit report changes over time, your credit score will change as well. The more responsibly you manage your credit, the more points you get. According to a review of Borrowell Canada members, even a single missed payment can lower credit scores by 150 points.

Your credit score calculation is based on information in your credit report. A credit score between 660 and 900 is generally considered good, very good, or excellent credit scores.

The credit score model has credit score ranges from 300 to 900 that is used to determine creditworthiness. People always ask if there is a “magic number” to obtain better loan rates. This is an age-old question. Different lenders may focus on different aspects of your credit history. So, I cannot give you one number that unlocks the door to the best loan rates.

credit scores rating
credit scores rating

Credit scores rating: How to check your credit report

Getting a credit card, getting a car loan, or applying for any loan will result in a credit file being opened up on you. The report keeps getting updated over time. Your borrowing history and borrowing experience are all taken into account.

The report contains information about every loan you have taken out in the last six years and whether you pay on time or not, how much you owe, what your credit limit is on each, as well as a list of creditors who are authorized to access your record.

You can get a free credit report on yourself yearly from each credit bureau. You need to submit your ID and background details to prove you are the person entitled to make the request. You can make sure that your credit history report is error-free. Any errors will be corrected by each credit bureau based on the evidence you provide.

A credit rating of R1 is the best. That means you pay within 30 days of receiving your bill, or “as agreed.”

Anyone who wants to grant you credit or provide you with a service that involves you receiving something before you pay for it (such as a rental apartment or phone service) can get a copy of your credit report so they can make a credit decision about you.

R9 is the lowest credit rating.

Average Canadian credit scores rating improved during the pandemic, Borrowell study finds

With Borrowell, a fintech company, you can get your credit score every week for free. From Q1 2020 to Q1 2021, they analyzed credit scores and credit reports of 1,015,369 Canadians, including those in 20 of Canada’s largest cities, to investigate changes in credit scores and missed payment trends across the country.

The Borrowell study came up with several very interesting findings:

  • Government relief measures, lifestyle changes, and financial shifts have impacted credit scores and bill payments over the past year – sometimes revealing the divergence in how COVID-19 affected different segments of society’s financial future.
  • In spite of the coronavirus pandemic, credit scores for Canadians actually improved.
  • The average number of people with missed payments decreased from 3 out of every 10 consumers to 2 out of every 10 people between the first quarter of 2020 and the first quarter of 2021.
  • From Q1 2020 to Q1 2021, Borrowell members’ average credit scores increased by 18 points, rising from 649 (under the average) in Q1 2020 to 667 (fair).
  • The risk of missing paying bills on time is 432 times higher for consumers with low credit scores rating.

    credit scores rating
    credit scores rating

The Statistics Canada study: Canadians with the lowest credit scores rating led the wave of pandemic credit card debt repayment

The new StatsCan study, “Trends in household non-mortgage loans: The evolution of Canadian household debt before and during COVID-19“, examines how Canadians reduced non-mortgage debt and debt levels during the pandemic.

During the pandemic, households began to see their disposable income rise, partly due to the limited spending opportunities during lockdowns, as well as the government’s monetary assistance, such as CERB or enhanced Employment Insurance. This was an opportunity for many households to pay down their expensive non-mortgage debt, with unsecured credit lines and credit card balances being paid down at record levels.

Prior to the pandemic, the outstanding balance on credit cards was $90.6 billion in February 2020, compared with $74 billion just a year later. During the two decades prior to the pandemic, the outstanding balance carried on credit cards had increased on average by 20.7% per year.

Debt reductions were greatest among Canadians with the lowest credit ratings, suggesting that those most vulnerable to financial hardship used savings prudently during the pandemic. Home prices increased, especially for single-family houses, as I indicated at the outset, driving a record increase in mortgage debt for Canadian households of $99.6 billion.

For me, this is a mixed blessing. You may be pleased to hear that many Canadians with low credit scores have been able to save money and reduce their household debt. In my opinion, mortgage debt is highly unlikely to have been accumulated by the same people.

People with low credit scores were not the ones filling out mortgage applications. It was rather people with good and excellent credit who either moved up and/or refinanced in order to do renovations, improvements and/or to pay off debt with a high-interest rate. Furthermore, it shows that people with low credit scores can earn more money staying home and receiving government COVID-19 assistance than they could make at their normal job. That is a very sad comment.

Minimum credit scores rating for mortgages in Canada

You can either be approved or declined for a mortgage based on your credit score. It can affect your mortgage interest rate, the type of mortgage available, as well as the mortgage lenders that you can choose from.

A mortgage requires a minimum credit score of:

  • in the case of major banks, 600;
  • for B lenders, 550;
  • private lenders have no minimum requirements; and
  • for CMHC mortgage default insurance mortgages, 600 points are required.

For a mortgage with bad credit, your only options are B lenders and private lenders, and they may require a large down payment or equity in your home. A lower credit score is generally associated with a higher mortgage interest rate. Low mortgage rates require a credit score of at least 680.

Having a credit score above 600 is good for getting a mortgage in Canada, as it opens up more options. In most cases, CMHC mortgage default insurance is not available to people with credit scores below 600. When you have a low credit score, your mortgage loan application may be denied, your mortgage rate may be higher, or you may be limited in the amount of money you can borrow.

A credit scores rating must be 680+ to qualify for the low-interest rates advertised in the media. CMHC mortgage default insurance is another issue some borrowers need to be concerned about. As long as you have sufficient income and property value to service the mortgage, a low score may suffice, however, the private lender will charge you higher fees and interest rates.

credit scores rating
credit scores rating

Credit scores rating summary

I hope that you found this credit scores rating Brandon Blog. Credit scores do not always properly reflect people who have problems because they are cash-starved and in debt. There are several insolvency processes available to a person or company with too much debt. You may not need 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.

credit scores rating
credit scores rating
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