FAQ - Frequently Asked Questions

Credit is basically an agreement. It is an established trust so to speak, that allows one party to entrust a valuable in the hands of another. Here, the borrower makes a promise to repay/return the value at an agreed-upon date. However, an interest accompanies a credit as well as a charge, for providing the service. Credit takes on different forms including installment loans for large purchases, such as a car or a home. Also, revolving credit arrangements which include credit cards and lines of credit.

Imagine you walk down a neighborhood, gazed upon a fine house perfect for your family. But you sure do not have money to buy or rent it. What do you do? It’s simple, that’s where credit comes to play. Credit is that rescuer that makes purchasing major items (such as a home or cars) possible for many Canadians. Without credit, everything we need assumes an on the spot payment process. But with credit, expenses are spread over time in a convenient, safe, and easy-to-manage plan.

When you make a promise and you keep it – trust is built. That’s pretty much the same way you build good credit. But why is that important? Just like your reputation good or bad, which would you rather choose? In reality, when you maintain good credit, a lender can trust you. What does that mean? Means you are sure to gain access to a wide array of lending products

Ever applied for a credit card, loan, or mortgage recently and been approved? If yes, then this was made possible by your good credit. Conversely, if you miss payments, make late payments, or consistently exceed your credit card limit, it spells distrust. This negatively impacts credit scores and hampers future opportunities. Parties that check your credit include banks when you apply for credit; insurance companies for auto, home, or life insurance. More so, a prospective employer, your future landlord, a potential phone company. Credit rubs off on so many aspects of our lives so you want to be careful.

Credit reports are a detailed collation of your credit history and they include:

1) Loans that have been used in the past

2) Loans that are currently in use

3) How much money is borrowed

4) Required minimum monthly payments

5) Your payment history (including defaults and late payments)

6) Records such as bankruptcy, consumer proposal, foreclosure, etc.

7) Any loans that have been defaulted on and are in collections

From this master report, a credit score is calculated. With that, lenders easily decide if they are going to approve you for credit.

Aforementioned, a credit score is an outcome of the analysis of your credit history (report). Based on your credit report information, a score between 300 and 900 determines your creditworthiness. For Canadians, credit scores are officially calculated by two major credit bureaus: Equifax and Transunion. The higher the score, the better your credit:

— 300 – 574: considered a low score and in need of repair

— 575 – 649: considered fair to lenders but interest rates might be higher

— 650 – 749: a good credit score that leads to a variety of credit options

— 750 – 900: an excellent credit

It is worthy of note that there could be a slight variation on the above stated, depending on the provider. Be sure to always check your credit report for any discrepancies

It doesn’t matter where you are in Canada, contact any of the following bureaus to request your credit report:

You should review your credit report at least once a year. Furthermore, if you are planning an important financial transaction over the next few months, you should order a report too. If you can, check your credit score online. You never know what errors you may find. By so doing, you can afford enough time to contact the appropriate body regarding any incorrect appearances.

No doubt, bad credit does limit your borrowing options. However, is it still possible to find a loan? Yes, certainly! But one thing worth considering: is a bad credit loan worth the disadvantages it carries?

Usually, when a lender approves a loan, they attach an interest rate. And, this rate is fashioned based on your credit score and past payment history. When your credit score is low, a lender assumes that you are at greater risk of defaulting. Of course, to offset the risk they experience, they increase your interest rate on getting credit.

While this is quite logical, it is sure to cost you more in the long run. Consider the following example:

Steve’s credit score is 770, ranking him among the top scores in the country. He recently bought a $400,000 home with a 30-year fixed mortgage. His credit score allowed him to secure the best interest rate on the market.

Across the street, Bill is attempting to buy a house that also requires a $400,000 loan. Despite the identical price, Bill’s credit score is 599. As a result, the bank will only approve Bill’s loan with a high interest rate attached. Over the next 30 years, Bill will pay over $650,000 more than Steve in accrued interest.

For this reason, instead of considering a bad credit loan, why not take steps to improve your financial stability. Credit Repair Now can help you achieve that credit score you deserve. Play it smart, go for gold and focus on credit repair first!

My husband’s credit score is fine so I don’t have a problem. Well, this is not true. Ordinarily, couples do not have any sort of collective credit score. However, when applying for a large loan like a mortgage chances are creditors consider both partner’s credit. If one partner has a flawless credit score, and the other poor to fair what happens? The resulting situation boils down to either higher interest rates or outright denial of the loan. Strive to make your credit scores as good as possible – it’s essential.

It’s a common myth that negative items must remain on your credit report for a minimum number of years. Truly, there is no such thing. Creditors control the information they provide to the credit bureaus. Eventually, they have the option to remove negative items as per discretion. Conversely, creditors may sell their bad debt to debt purchasers. This means you now owe the debt purchaser, and your debt on the other hand is now seen as a new debt
When your car battery goes dead, you either jump start or replace as the case may be. This is you going for a fix. When your credit is poor, there is also the need for a fix. Those steps taken to improve poor credit standing defines the term “Credit repair”. It is simply the process of cleaning up inaccuracies on credit report. This includes removing wrong or inaccurate information, protecting your identity, and becoming more informed on your credit issues. If you have bad credit, they would only improve when you rebuild your credit file. So, this is where Credit Repair Now specializes, and will help to get your credit back on track!

Since everyone credit history is different we cannot give you an estimate before we see your credit report. To get your credit repair estimate, shoot us a message via the contact form below and we’ll get back to you shortly. 

Your credit record either spells good or bad on your credit worthiness. The results of bad credit are not far-fetched as they influence your qualification for that credit, job, mortgage or insurance. That said, it is important to repair if your credit score is low. With the stakes and high interest that accompanies a bad credit, recovering from that state is to your advantage.

Certainly, you can repair your credit on your own. There is nothing a credit repair agency can do for you that you can’t do by yourself. However, all you need is the commitment and willingness. Also, you need to educate yourself about credit law – in and out. In fact, you can find DIY kits, books, and other resources online that will give you the tools necessary to begin repairing your credit.

While this is a lot of work some persons can do it on their own. On the other hand, most persons resort to having credit repair agencies do this work on their behalf. At Credit Repair Now, diligence is the watchword. We know the ins-and-outs of credit repair better than anyone, you can bet on it!

Is best to consider “How well” by the way. But to answer the question, it can take anywhere between two weeks to six months to start seeing noticeable results. Most importantly, it all boils down to your goals, current situation, and how much work needs to be done.
Is credit repair worth it? Inarguably! Still unsure? Have a look at what your credit impacts. You’ll see that your credit impacts just about everything. If you don’t repair you credit, it can cost you thousands and thousands of dollars. It can keep you from getting a job, a home or car loan, an insurance coverage. No doubt, it’s a very bitter pill to swallow. In contrast, the confidence and assurance that comes with good credit and overwhelming opportunities is priceless. Fortunately, with the experts at Credit Repair Now working on your credit issues you’re a step away from landing your dreams.

Didn’t find the answer to your question? Give us a call on +1 647-373-9651! or leave a message here.