Are debt problems keeping you awake at night? Are you are struggling to make your monthly minimum credit card payments, loan payments, Revenue Canada debt payments? Are you worried about losing your house, car, or investments?
When you are faced with financial difficulties it is important to seek professional help to determine how to best tackle the problem. This can save you valuable time, money and eliminates stress.
At Kevin Thatcher & Associates we have certified Credit Counsellors who offer credit counselling services and consultations that allow you assess all your options and make the best financial choices available to you.
Our friendly counselling staff can assist with your budgeting and financial management questions so you can make the decisions that will free you from a looming debt crisis.
Contact our office today to schedule one of our free initial consultations.
Credit Rating
Learn more about what affects your credit rating and how to restore it.
Your credit rating is based on your credit history, kept by a credit bureau. It is calculated from monthly reports from lenders. When you file for a bankruptcy, proposal, or consumer proposal, the Office of Superintendent of Bankruptcy (OSB) reports this information to the credit bureaus. A credit bureau creates a credit report available for purchase by all potential creditors.
You are eligible to receive a copy of your own credit report once a year by mail, for free. You will be charged a fee for any additional copies.
Bankruptcy will definitely affect your credit rating. However, if you are unable to pay your bills and are in such an overwhelming financial situation that you are considering bankruptcy or a consumer proposal, you will already have a credit rating problem.
Once you are discharged from bankruptcy, you can start to rebuild your credit score.
The main credit bureaus in Canada are Equifax and Trans Union.
- For a first bankruptcy, Equifax keeps the record on your credit report for 6 years from the date of your discharge. Trans Union keeps it for 6 to 7 years from your discharge. This may vary between provinces, as provincial legislation differs.
- For a second bankruptcy the records are kept for up to 14 years
Taking steps to repair your credit score is important moving forward. Ways to do this are:
- Make sure you are discharged from your bankruptcy or proposal as soon as possible by making all monthly payments and reports, and fulfilling all your bankruptcy or proposal responsibilities.
- Start saving money, to prove that you are financially responsible. Creditors will look favourably if you have a growing savings account.
- Pay all your bills on time. Any late payments will reflect badly and could prevent you from receiving credit.
- After your discharge you may want to start with a secured credit card (a credit card with a credit limit secured by your savings or an initial deposit), and make sure you use it wisely.
Take the first step to fixing your debt problems and contact us today for a free consultation.
