If you’ve been looking up the steps to applying for a loan online or in general, having discussions about loan applications with your friends and peers – you must have come across the term “credit report” a lot.

What is this credit report and how does this benefit you?

Find out this and more below.

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What Does “Credit Report” Stand For?

Your report is nothing but the history of all your debts and repayments, prepared by a credit bureau.

Credit bureaus engage themselves in drafting credit report for loan applicants to provide credibe information to interested lenders.

The lenders then use this report and other collected information to determine whether it is safe and wise to lend their money to the applicants.

Why is it Important to Have an Updated Credit Report?

As already discussed, your report functions as a mirror to your present financial situation.

It contains crucial information such as your address, social security number, employment history, credit card history including details about high balances, limits and date of obtaining said card.

An updated report could be the difference between being trusted by your lender for your ability to repay and being passed over by him/her for somebody with an up-to-date report.

How to Receive and Update Your Report

You can use the following steps to obtain your credit report and update it to make it error-free –

  • Check Your Report America has three consumer credit bureaus which are tasked with drawing up credit reports. You can visit https://www.annualcreditreport.com/ and keep a check on the annual report prepared by these bureaus every year.
  • Look Out for Mistakes – Once you’ve received your report, keep yours eyes out for any mistake or failure in updation of information. If you notice that your report bears a mistake or still reflects unpaid credit incorrectly, you can proceed to make the necessary changes.
  • Correct Found Mistakes – You can formally apply to correct the mistakes in your report by supplying evidence of your argument. Similarly, you can also write to the credit bureau and ask them to have your comments attached to the report, so the lender is aware of the mistakes.
  • Make it More Attractive – You don’t simply want to stop at correcting the errors in your credit report, you want your report to fetch you that mortgage. So, what do you do? You make active efforts in lowering your debt load. Prioritise paying off high interest debts over those which owe lesser interest rates. You want to impress your financial trustworthiness upon your potential lender and paying off your existing debts is a great way to start.

Repair Your Credit

A good credit report if often all the document you need to convince an interested lender to lend you their money.

In such a light, maintaining impressive credit should be high on your list of responsibilities if you’re considering applying for a loan/mortgage anytime soon.

That said, it is never wise to let your debts grow.

Make it a practice to repay your debts whenever you can and you will have yourself a sturdy and dependable credit history by default.

Source –

https://www.creditcardinsider.com/learn/errors-mistakes-in-your-credit-report/

https://www.investopedia.com/terms/c/creditreport.asp

Credit counselling in Alberta is a non-judgemental and free way to get your finances back on track.

We are proud to provide non-profit consumer debt and credit counselling services in Alberta.

Our professional debt relief experts can help you explore your options and determine the right solution for your personal situation.

With our help you:

  • Will put an end to collection calls.
  • Save money on high interest charges.
  • Get your finances under control.
  • Consolidate your debts into one low monthly payment.

Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation

Call 877-879-4770

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To learn how we can help you get your debt under control we are pleased to offer free appointments to speak with one of our licensed Alberta credit counsellors.

Due to the Covid-19 pandemic we offer consultation meetings by phone or video chat, as well as in person consultation meetings if you prefer.

We are pleased to share our knlowedge and expertise so you can make an informed decision about getting out of debt.

Schedule a free, non-judgemental and confidential meeting with a licensed Alberta credit counsellor today!

Consumer Debt is Rising in Alberta

The level of personal debt has been rising across Canada for many years.

However, consumer debt in Alberta is growing faster than the rest of the country.

Albertans have been trying to get control over this debt.

In certain cases they have gone bankrupt or filed for a consumer proposal.

However, many have turned to credit counselling in Alberta.

What is Credit Counselling and Will it Help Me?

Credit counselling is a comprehensive process of dealing with debt and money problems with a professional counsellor. Credit counselling works to address the source of your money problems and how you can avoid such problems in the future. In some cases, credit counselling is enough – in other cases, the counsellor might recommend bankruptcy or a consumer proposal.

You can get credit counselling from a licensed insolvency trustee, who are the only debt relief professionals that can provide bankruptcy and consumer proposal services.

During a typical credit counselling session you will learn:

  • How to create a proper household budget.
  • How to work with your creditors to negotiate lower interest charges and payment plans.
  • How you can enter into an affordable repayment plan, if necessary (a consumer proposal).

The credit counsellor can help you set up a debt repayment plan that will work for your budget and household.

When Should I Opt for Credit Counselling?

Consumers with debt problems can always take advantage of meeting with a credit counsellor. However, if you are dealing with the following issues, you should definitely consider credit counselling in Alberta:

  • You are borrowing from one creditor to repay another.
  • You struggle to make the minimum payments on your debts.
  • You are unable to qualify for any more loans.
  • You are dealing with collection activities, such as collection calls or wage garnishments.
  • You have no money left over at the end of the month.

Learn About Your Options

If you are struggling with consumer debt, the only way out is to reach out to a licensed debt relief specialist who can help you explore all of your options, including credit counselling.

Alberta Credit Counselling

Calgary
Edmonton
Red Deer

Being in debt can raise many emotions, including shame, fear and guilt to name but a few; and all of them are emotions that can be difficult to stand up to.

With emotions flared and creditors on their backs, it’s unsurprising that many people try to ignore their debt as a tactic for dealing with the stress.

Here at Bankruptcy Canada, we’ve seen hundreds of cases where people have tried to ignore their debt and here’s what we have learnt.

Ignoring your debt rarely helps

Unless you are approaching the end of your statute of limitations liability period, then ignoring your debt is rarely the answer.

Burying your head in the sand and trying to pretend that your debt doesn’t exist, tends to only lead to further problems and complications that make your financial situation worse in the long run.

Creditors won’t stop calling, your interest will continue to compound and your debt will grow, leaving you in more of a mess than you started with.

Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation

Call 877-879-4770

or

If ignoring debt isn’t the answer, then what is?

Instead of ignoring your debt, there are several other options available to you that will help you to pay back what you owe, or to start a new financial slate if your debt is too much to pay back.

Some of the things that you could do instead of ignoring your debt include:

Negotiating with your creditors

Believe it or not, your creditors want to help you to pay them back, and many are willing to negotiate payment plans, interest rate freezes and lower interest rates to help you.

If you’re worried about negotiating with your creditors yourself, then speak with a Licenced Trustee who will be able to liaise with them on your behalf.

Consolidating your debts

If you have multiple debts and are feeling overwhelmed, then consolidating your debts into one more manageable monthly repayment could be the answer.

Consumer proposal

If you have a large amount of debt, but don’t want to risk losing your assets by filing for bankruptcy, then a consumer proposal can help you to pay back affordable repayments to your creditors.

Consumer proposal payments last for a fixed period of time (usually five years), after which any remaining debt will be discharged.

Bankruptcy

Even if you have no way to repay your debt and are declared insolvent, then you can still start a new financial slate by filing for bankruptcy.

Contrary to popular belief, many people get to keep more than they think during a bankruptcy proceeding, exiting the process with most of their personal belongings and without the stress of debt on their shoulders.

Choosing the right debt relief service for you

Here at Bankruptcy Canada, we understand that debt can be scary but trust us when we say that ignoring it won’t make it go away.

With just one phone call, we can match you with a local Licenced Trustee who will be able to assess your debt and advise you on the best debt-relief route to take.

To find out more about what we do or to be matched with a Licenced Trustee, call us on (877) 879-4770 or fill out our online form. 

Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

Need a Licensed Insolvency Trustee?

Licensed Insolvency Trustees Near Me

If you have heard of good debt and bad debt before then you should know that such debt is a sensible investment for your financial future.

Your good debt should leave you way better off in the long-term and it should also not have any negative impact on your financial position.

With this kind of loan, you would have a clear reason for taking the debt on and you will also have a realistic plan for paying it back as well.

Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation

Call 877-879-4770

or

Here are Some Examples of Good Debt

There are a few examples of good debt.

This could include taking out a student loan to pay for university because when you graduate, you can then go on to make more money.

The great thing about having a student loan is that the interest rates tend to be relatively low.

A mortgage is another example of how good debt can be used to your advantage.

If you get on the property ladder then you will have your own home to live in and when you have paid your mortgage you will have one of the best assets you could hope to have.

Lastly, another example of good debt is investing in your very own business.

If your business does really well then it could end up being worth way more than the loan you took out.

Examples of Bad Debt

Unfortunately, bad debt does exist, and it is vital that you talk about it with someone if you feel as though you are facing financial difficulties.

Bad debts can be ones that drain your financial wealth, are not affordable or do not pay themselves in the future.

Bad debts won’t have any kind of repayment plan and they also run up when people make impulse buys.

Some examples of bad debt include a luxury holiday that you cannot afford the repayments of, or a brand-new car that you just don’t need.

New cars lose value the second you drive them off the lot, so instead of getting into debt, put the work in and try to save up first.

If you do this then you may find that you are able to pay for the car without having to take out any kind of debt at all.

How do you Avoid Bad Debt?

If you want to avoid bad debt, then ask yourself some of these questions.

If the answer is no to any of them, then there’s a high chance that the debt is bad.

 

  •       Have you shopped around to get the best deal?
  •       Are you borrowing money as cheaply as humanly possible?
  •       Can you cope if interest rates were to rise?
  •       Do you understand the terms and conditions?

 

If you are in bad debt and you do not see a way out, then Bankruptcy Canada can help.

We can work with you to make sure that you are comfortable with the solution you have been suggested, and that you understand every aspect of your debt plan.

Contact us today to find out more.