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

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Difference between credit report and credit score: Introduction

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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#VIDEO – NEW YEAR’S DEBT RESOLUTION: 3 SIMPLE STEPS TO ACHIEVE SUCCESS

New year’s debt resolution: Introduction

New Year’s resolutions are hard to keep and new year’s debt resolution is no different. OK, so first, Happy New Year 2017. And maybe more importantly, the world didn’t end with Donald Trump’s election! Now because it’s the new year we know exactly what’s going to happen. People are going to go and make promises that they won’t keep. Get more fit, lose weight, start a business, have better relationships with family and friends, make more money, budget better and of course, pay off debt.

New Year’s debt resolution: How successful are we at keeping new year’s resolutions?

According to Wikipedia, the success rate for New Year’s resolutions is about 12%, which means that there has to be something wrong with our resolving, right? How often do you discover people you know resolving to do a whole range of things, like write a song, read 100 novels or go to the gym twice a week?

All of that is really hard. I mean, our hearts are in the best place, but it requires self-discipline, and periods of prolonged firmness. And willpower, much like those flabby muscles, requires an effort. Psychologist Roy Baumeister writes in “Willpower” that those bad at resolving should mention, “put the blame where it belongs, on the list.” Instead of resolving to learn to master the guitar, quit smoking, lose weight and climb all the mountains, just choose one. Start small-time and end large-scale.

New year’s debt resolution: 3 simple steps to meet success

3 Simple-minded tips for starting the new year right. It’s the start of a brand new year. It really is the start where people reevaluate their lives in originating resolutions to change for the better. So in the spirit of self-improvement why not widen this to your personal business.

Now are three improbably simple-minded tips that do really that:

1. Monitor your business. If you don’t already keep watch over your funds now’s the time to get started.

2. Prevent wasteful spending by creating a simple budget; and follow it! You can download our debt management spreadsheet for free at the bottom of this blog.

3. To jump-start your financial year it’s not a bad idea to get a good look at your credit report. Get any errors fixed and see what you need to do to improve your credit score. To get a copy of your credit report, you can get access to it through one of the two credit bureaus’s; Equifax or TransUnion.

New year’s debt resolution: We can help you make success

Whether you have just one year or several years of new year debt resolutions outstanding, it still needs to be dealt with. To deal with debt you need the help of a debt professional – a trustee. Dealing with debt is not something that you can put off any longer. Start the New Year off right by calling Ira Smith Trustee & Receiver Inc. today and make an appointment for a free, no obligation consultation. We can give you back peace of mind and put you on the road to stress free living Starting Over, Starting Now.

New Year’s Debt Resolution

new year's debt resolution, new year's resolution debt

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#VIDEO – CREDIT FRAUD ALERT CANADA: APPLY THESE 3 SECRET TECHNIQUES TO GUARD AGAINST IDENTITY THEFT#

CREDIT FRAUD ALERT CANADA: SEE OUR FREE OFFER

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Credit Fraud Alert Canada: Introduction

Laurie Campbell joins me now to explain about credit fraud alert Canada. She is the CEO of Credit Canada Debt Solutions. Alright so let’s talk about some practical tips. What are your top three tips that will help people lower the risk that they could go through like this woman from Winnipeg described below went through?

Credit Fraud Alert Canada: Laurie’s top 3 tips

Laurie’s top 3 tips are:

  1. Check your credit rating. Contact both Equifax and TransUnion because those are the two credit reporting agencies in Canada.
  2. Limit the of credit cards you have. So many people are not aware of how easy fraud can happen when you have five or six or ten types of credit out there.
  3. Don’t give out your credit card or personal information to people even if you know them well. Safeguard it like money and make sure you do not give your credit card to people who may phone you asking for it. There are many scammers just phishing for information.

Credit Fraud Alert Canada: A very sad story

This woman’s story has lasted just over three years. Imagine, three years to get your credit fixed. That is unusual, incredibly unusual for it to take that long. Certainly there are some there are processes in place and you know unfortunately for her the only reason she found out about it was because she had a mortgage renewal. This is why it’s important to check your credit rating.

Credit Fraud Alert Canada: The credit rating

So remind us again what a credit rating is. There is a credit rating and a credit score. Both are very important. Your credit rating is a rating on how well you pay your debts and it reflects your credit history. For example, if you pay on time and you have a long period of history reports on the different types of credit that you have.

Your credit score is accumulation of information including not just your credit rating but that how long have you been using credit and your behavior with credit over time. It is personal information so essentially your credit rating makes up your credit score to a certain degree.

Credit Fraud Alert Canada: An ounce of prevention

Both are really important and so what options does a fraud victim have when you’re getting stonewalled by the creditors or the credit agency and there is wrong information about you in your credit report?

First there are certain things we hopefully can do to prevent that from happening but once that does happen you can ask for an investigation by the credit reporting agencies. You are going to need to be able to have some backup information on your set of circumstances to prove that it wasn’t you. In this case you are guilty until proven innocent. The burden is on you as the consumer to point out why they’re wrong and made a mistake.

Don’t forget that the credit reporting agency is merely reporting on information from the date provided to it. So first, you are going to need to have the creditor recognize that there is an error. Keep in mind it could be something as simple as your employment information. If you don’t have up-to-date employment information on you because you haven’t applied for credit since you have a new job or new place of residence. Those types of things are considered errors as well so we start to whittle away it.

Credit Fraud Alert Canada: Always check your credit report

We need to know what our credit report says and that’s why as Canadians we should be checking it on a regular basis. Some families share their credit cards with their kids which makes them more susceptible to being victims of fraud. Anytime you’re giving your giving your credit card out, especially to family members or friends, you’re putting yourself at risk.

First, there is “friendly fraud”. You hope it never happens to you where somebody else is using your credit in a way that you don’t want them to. Also, exposure in the marketplace is a problem. That is where people can leave credit cards behind and people then use it for their own purposes.

You should safeguard your credit like cash, but some people don’t do this.

Credit Fraud Alert Canada: Get your solution

The last thing any of us need is having our identity stolen and a fraud perpetrated on us to ruin our credit. If you are having credit and debt problems, help with your debt issues is available now. Contact Ira Smith Trustee & Receiver Inc. We’re your best defence against debt. Make an appointment for a free, no obligation consultation and you can be well on your way to a debt free life Starting Over, Starting Now. Give us a call today.

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CANADIAN HOUSEHOLD DEBT: WE SEEM TO LOVE IT!

household debt, Canadian household debt, how to pay off debt, debt, mortgage debt, interest rates, financial danger zone, credit card, credit card spending, Moneris Solutions, Equifax, auto loans, seniors, trustee, lifestyle, Canadian debt, Canadian economyCanadian household debt at a record high

The ratio of Canadian household debt to disposable income has hit a record high of 164.6%. This means for every $1 of after tax income Canadians earned, they owed nearly $1.65 in credit market debt – mortgages, credit cards and other kinds of consumer loans. The reality is that many Canadians are living in a financial danger zone. They’re walking a financial tightrope where anything like the loss of a job or an increase in interest rates can throw off this delicate balance and plunge them into financial disaster.

Increase is no surprise

TD Bank economist Jonathan Bendiner wrote about Canadian household debt, “The increase came as no surprise. Rising mortgage debt drove most of the growth as interest rate cuts by the Bank of Canada earlier in the year spurred borrowing, especially in the hot housing markets in British Columbia with all the homes for sale in Mission BC and Ontario”. The great concern now is what happens once interest rates rise to more typical levels. How many Canadian will no longer be able to pay their bills or carry their household debt?

5 reasons why for the increase in Canadian household debt

Why is Canadian household debt at an all time high? In addition to rising mortgage debt it may come down to one simple word – lifestyle:

  • Credit card spending rose by 8% this year (Moneris Solutions Corp.)
  • Spending on restaurants and fast food rose by more than 12% (Moneris Solutions Corp.)
  • Home improvement spending soared nearly 10% in the second quarter of the year compared with the same time last year, led by sales of glass, paint, wallpaper and flooring (Moneris Solutions Corp.)
  • Furniture sales are up more than 17% (Moneris Solutions Corp.)
  • Auto loans rose nearly 4% in the second quarter on the back of record vehicle sales (Equifax)

Has income kept pace with Canadian household debt? No!

Unfortunately incomes haven’t increased in the Canadian economy to compensate for the increase in spending and Canadian household debt. A Bank of Montreal report states that approximately 80% of Canadians are in debt and nearly 66% would have trouble affording their household debt if interest rates went up by just two percentage points. Canadians now spend an average 14% of after tax income on their debts. Sadly, the group that’s struggling the most is seniors. According to Equifax, for the first time in five years, 90-day delinquency rates rose among seniors in the second quarter.

What is a person to do?

Are you walking a financial tightrope? If interest rates rise will you be able to afford your household debt? Better yet, would you know how to pay off debt?

Don’t wait for disaster to strike! The time for professional help is NOW. Contact Ira Smith Trustee & Receiver Inc. We’re experts in debt and debt management. We approach every file with the attitude that corporate or personal financial problems can be solved given immediate action and the right plan. Starting Over, Starting Now we can give you financial peace of mind.

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VICTIM OF IDENTITY THEFT: TAKE QUICK ACTION

identity theft, victim of identity theft, credit report, Equifax, TransUnion, credit bureaus, Canadian Anti-Fraud Centre, CAFC, starting over starting nowIn our last blog we discussed How to Prevent Identity Theft – Recognize if You’re a Victim. This week we’ll be discussing what to do if you are a victim of identity theft.

If you believe that you are a victim of identity theft, speed is of the essence. Take immediate action and keep a paper or electronic trail of your conversations and correspondence. Here is a check list of things that every victim of identity theft must do:

  • Review all of your bank and credit card statements with a fine tooth comb: Note all suspicious transactions and notify the bank and/or credit card company immediately. Close all compromised accounts. Have new bank cards/credit cards issued. Change all PIN numbers.
  • Review your credit report: Be on the lookout for any accounts that you didn’t open and for creditors who have made inquiries on your credit report when you didn’t ask for credit.
  • Close any accounts you didn’t open and decline any new accounts you didn’t request: Contact each of the creditors individually and explain that you’ve been a victim of identity theft.
  • Contact both major credit bureaus: Let them know you have been a victim of identity fraud and request that a Fraud Warning be placed on your credit file instructing creditors to contact you personally before opening new accounts in your name.
  • Equifax Canada
    1-800-465-7166
  • TransUnion Canada
    1-877-525-3823
  • Contact the Canadian Anti-Fraud Centre (CAFC): Report your identity theft to the Canadian Anti-Fraud Center on their website or by calling 1-888-495-8501.The CACF is the central agency in Canada that collects information and criminal intelligence on all forms of mass marketing fraud, including advance fee fraud letters (e.g. West African fraud letters), Internet fraud, identity theft complaints and others.
  • Contact your local police: Report your identity theft to your local police. Be sure to advise them of any suspicious activity on your credit report. Make sure that you get a police report number.
  • Contact Canada Post: If you’re not receiving your usual mail, someone may have had your mail re-directed. Notify Canada Post of your identity fraud.
  • Contact your service providers: Report your identity theft to your service providers – Internet, cable, telephone, mobile phone, electricity, gas, water, etc.

If you are a victim of identity theft, debts have been incurred in your name and you are looking at your options in dealing with debt in general, you must now take that action too. The Ira Smith Team is here to help. With immediate action and a solid financial plan you can be well on your way to Starting Over, Starting Now. Don’t delay! Contact us today!

 

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BAD CREDIT: CAN IT HURT YOUR JOB SEARCH?

bad credit, credit, job search, Equifax, TransUnion, BackCheck, credit history, credit report, credit check, medical debt, marital breakdown and bankruptcy, starting over starting now, good credit and bad credit, credit check, living paycheque to paycheque, credit ratingBad credit showing up on your credit history can impact your job search. Many companies will check your credit as part of the routine background check. Some people believe that how you pay your billsgives employers an indication of the quality of your work. These employers believe that an applicant with bad credit indicates either an inability to live up to your commitments or a belief that it is not important to honour your commitments. This belief, correct or not, are traits that potential employers do not wish to inherit.

Of course this is painting a picture with very broad strokes and doesn’t take into consideration the reason for your financial problems causing the bad credit, which may be due to a divorce or a layoff. But, employers want to avoid situations when collectors start calling the office or try to garnish wages. Previously, we have written many blogs on such causes of financial problems, including:

According to Dave Dinesen, President and CEO of BackCheck, a pre-employment screening services company, they’ve screened over three million Canadians for more than 5,000 organizations, and the vast majority of employers use credit checks for identification verification purposes (such as employment history and address history). By doing so, they can also differentiate between candidates who have good credit and bad credit.

Before a potential employer can pull your credit history, you must sign a release. Protect yourself and know exactly what’s in your credit report before your potential employer does. To get a copy of your credit report contact either of the two major reporting agencies – Equifax or TransUnion. They are required to provide you with a free copy of your credit report once every 12 months, if you ask for it. Have them correct any inaccuracies that you find. If you discover anything in your credit report that could be potentially damaging, the best thing to do is be upfront with your potential employer. The likelihood is that a few late payments won’t prevent you from being hired. However, if you believe that a credit check will expose that you have bad credit and would negatively impact your job search, you may want to consider applying to smaller companies that don’t do routine credit checks as part of the hiring process.

Bad credit is serious and can impact many aspects of your life. Don’t ignore your financial problems; face them head on with professional help. Contact Ira Smith Trustee & Receiver Inc. We’ll work with you to get your life back on track so that Starting Over, Starting Now you’ll never have to be afraid of a credit check again.

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BAD CREDIT HAS COSTS – IMPROVE YOURS NOW!

bad creditBad 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.

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

credit report, credit score, bad credit score, credit bureau, TransUnion, Equifax, credit reporting agencies, poor credit score, trustee, insolvency, bankruptcy, starting over starting nowHave 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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