Career Opportunity: Debt Negotiator/Settlement Specialist

EXPERIENCE IN A COLLECTION AGENCY OR A COLLECTIONS LAW FIRM IS A MUST, DO NOT APPLY UNLESS YOU MEET THIS QUALIFICATION!

LAW FIRM in Kitchener, Ontario is seeking a candidate to join its Debt Resolution Team.

Responsibilities:

Devise a debt resolution strategy and manage client expectations;
Negotiate and settle client’s outstanding debt accounts with creditors, collection agencies and bill collectors;
Negotiate with creditors to have the debtor’s credit reported by the creditors in the best possible way that is most advantageous to the debtors’ position;
Ensure clients receive the best possible settlements;
Ensure client’s interests are protected by ensuring to receive Full and Final Releases plus following up with creditors to ensure the settlement is reported to credit reporting agencies;
Communicate with clients about settlements.

Skills:

experience in a collection agency or collections law firm is a must
excellent negotiation skills
excellent customer service skills
bondable: dealing with sensitive client information including financial information
able to multitask and manage time effectively
basic reporting skills using excel and outlook
knowledge of the collection industry is required
able to work independently as well as part of a team
strong vocabulary and interlocutory skills
patience and empathy to deal with and alleviate client concerns
basis administrative skills
experience in sales is an asset.

If you fit the above noted skills and think that you would be an invaluable asset please feel free to forward your resume to info@debtlaw.ca

Career Opportunity: Client Care Representative

EXPERIENCE IN A COLLECTION AGENCY OR A COLLECTIONS LAW FIRM IS A MUST, DO NOT APPLY UNLESS YOU MEET THIS QUALIFICATION!

LAW FIRM in Kitchener, Ontario is seeking a candidate to join its Client Care Team.

Responsibilities:
manage client accounts
communicate effectively with clients and assist them with any questions or concerns they may have.

Skills:
excellent customer service skills
bondable: dealing with sensitive client information including financial information
able to multitask and manage time effectively
basic reporting skills using excel and outlook
experience in collections is required, knowledge of the collection industry is required
able to work independently as well as part of a team
strong vocabulary and interlocutory skills
patience and empathy to deal with and alleviate client concerns
basis administrative skills
experience in sales is an asset

If you fit the above noted skills and think that you would be an invaluable asset please feel free to forward your resume to info@debtlaw.ca

Want to know if you are going to owe this tax season? Here's how.

As we get near tax time most of us are wondering whether or not, this year, we’ll have to pay income taxes. If so, should we contribute more to our RRSP to avoid paying income tax to the CRA?

Well here is a great calculator provided by Ernest & Young that will help you to calculate whether you will need to pay extra income tax when you file. It also tells you how much of a refund you will receive if you contribute to your RRSP.

http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2015-Personal-Tax

How to Use it

  1. Simply input your 2015 salary in the “Taxable income” field. If you have a T4 look at Box 14 in your T4 titled Employment Income. If you’re self-employed simply enter your net income after expenses.
  2. Then look at the Ontario row under the province column.
  3. Look at the column titled Tax payable. If the amount of tax payable in that field is more than what was withheld in Box 22 on your T4, then you may have to pay.
    If you are self-employed and have not made quarterly installments that is what will be payable.
    If either of these is the case then you might want to look into investing further into your RRSP to avoid owing money to the CRA.

Biggest Canadian Collection Agencies Contact Information

A relatively small number of collection agencies dominate the collection industry in Canada. If you are receiving collection calls from a collection agency in connection with monies owing to a chartered bank, a credit card company, a large retailer, or a major utility or you have an outstanding student loan the odds are pretty high that you are receiving collection calls from one of the following—the biggest Canadian collection agencies.

Allianceone Ltd. (Alliance One)

www.Allianceoneinc.com

1220 Sheppard Avenue E. #300
Toronto, ON M2K 2S5
Ph. (215) 354-5511
Fax. (215)396-7255

Allied International Credit Corp. (AIC)

www.Aiccorp.com

Corporate Head Office
16635 Yonge Street, Suite 26
Newmarket, ON L3X 1V6
Ph. (905) 470-8181
Fax. (905) 470-8155

Montreal
4200 Boul. St- Laurent, Suite 803
Montreal, QC H2W 2R2
Ph. (866) 368-9718
Fax. (514)868-0195

Vancouver
1200 West 73rd Avenue, Suite 400
Vancouver, BC V6P 6G5
Ph. (866) 259-4317
Fax. (604) 629-0150

A.R.C Accounts Recovery Corporation

www.arc.ca

777 Guelph Line, Suite 204
Burlington, ON L7R 3N2

General Inquiries
Ph. (250) 953-6900
Toll Free (888) 769-9272
Fax. (250) 953-6999

Client Relations – Ombudsman
Ph. (888) 771-9111
Fax. (877) 206-3824

Human Resources
Ph. (888) 256-5399

ARO Inc.

www.Aro.ca

Corporate Head Office
1001 Sherbrooke E., Suite 700
Montreal, QC H2L 1L3
Ph. (514) 322-1414
Toll Free (877) 322-1414
Fax. (514) 322-5554
Toll Free Fax. (866) 253-5554

British Columbia
111-565 Bernard Street
Kelowna, BC V1Y 8R4
Ph. (250) 762-7070
Toll Free (877) 250-7070
Fax. (250) 762-4111

Ontario
7030 Woodbine Ave. Floor 7
Markham, ON L3R 6G2
Ph. (289) 789-1001
Toll Free (877) 789-1001
Fax. (905) 470-6595

CBV Collection Services Ltd.

www.Cbvcollections.com

British Columbia
100-814 Richards St.
Vancouver, BC V6B 3A7
Ph. (604) 687-4559
Toll Free (866) 333-4559
Fax. (604) 661-7926

Alberta
1333 8 Street SW, Suite 315
Calgary, AB T2R 1M6
Ph. (403) 543-0500
Toll Free (866) 922-0500
Fax. (403) 263-3581

Manitoba
242-240 Graham Avenue
Winnipeg, MB R3C 0J7
Ph. (204) 944-8639
Toll Free (866) 887-0749
Fax. (204) 956-5699

Ontario
1200-100 Sheppard Ave E.
Toronto, ON M2N 6N5
Ph. (416) 482-9323
Toll Free (866) 877-9323
Fax. (416) 482-9359

Montreal
2 Place Laval, Suite 320
Laval, QC H7N 5N6
Ph. (450) 972-1611
Toll Free (888) 493-4646
Fax. (450) 975-1702

Collect Com Credit Inc.

www.Collectcom.com

3680 Victoria Park Ave., Suite 100
Toronto, ON M2H 3K1
Ph. (416) 916-9162
Fax. (416) 916-9163

Collectcorp Inc.

www.Collectcorp.com

415 Yonge Street, Suite 2000
Toronto, ON M5B 2E7
Ph. (800) 900-4238
Fax. (888) 432-2923

Common Collection Agency Inc.

www.Commoncollections.com

11 Progress Avenue, Suite 205
Toronto, ON. M1P 4S7
Ph. (416) 297-7077
Toll Free (888) 851-8699
Fax. (416) 297-7439

Contact Resource Services Inc.

http://www.contactresource.com/

2070 Hadwen Rd., Suite 300
Mississauga, ON L5K 2C9
Ph. (905) 855-8106
Fax. (905) 855-2457

Financial Debt Recovery Ltd. (FDR)

www.Fdr.on.ca

Head Office
40 West Wilmot, Suite 10
Richmond Hill, ON L4B 1H8
Ph. (800) 763-3328
Fax. (905) 771-6005

Eastern Call Centre
1117 Ste. Catherine St. W., Suite 920
Montreal, QC H3B 1H6
Ph. (877) 651-9259

Global Credit and Collections Inc.

www.Globalcollection.net

1490 Denison St.
Markham, ON L3R 9T7
Ph. (905) 479-2222
Toll Free (800) 563-4929
Fax. (866) 915-5199

iQor Canada Ltd.

www.iQor.com

255 Consumers Road, Suite 130
Toronto, ON M2J 1R4

Consumer Advocacy Group
Ph. (800) 811-4214

Solutions and Services:
Ph. (866) 657-2057
Fax. (514) 493- 7892

Metropolitan Credit Adjusters Ltd.

www.Metcredit.com

Alberta
400-10310 Jasper Ave.
Edmonton, AB T5J 2W4
Ph. (780) 423-2231
Toll Free (888)797-7727
Fax. (780) 425-1522
Toll Free Fax. (888) 252-2022

Ontario
6811 Century Ave.
Mississauga, ON L5N 7K2
Ph. (905) 819-8939
Toll Free (866) 463-9161
Fax. (905) 858-9166

Quebec
Bureau 600, 1155 Rue Universite
Montreal, QC H3B 3A7
Ph. (514)878-9444
Toll Free (866) 878 9444
Fax. (514) 878-9422
British Columbia
475 West Georgia St, Suite 430
Vancouver, BC V6B 4M9
Ph. (604) 684-0558
Toll Free (800) 835-7094
Fax (604) 684-0515

MJR Collection Services Limited

www.Mjrcollections.com

7033 Telford Way, Suite 17
Mississauga, ON L5S 1V4
Ph. (905) 671-4151
Fax. (905) 671-2225

NCO Financial Services Inc.

Ncogroup.com

Quebec Mailing Address
75 Port Royal East, Suite 240
Montreal, QC H3L 3T1

Ontario Mailing Address
6700 Century Avenue, Suite 210
Mississauga, ON L5N 6A4

Consumer Hotline
Ph. (800) 550-9619
Fax (866) 269-8669
General Inquires
Ph. (514) 385-4444

Nor-Don Collection Network Inc. (NCN)

www.Ncn.ca

Corporate Headquarters
325 Milner Avenue, Suite 1111
Toronto, ON M1B 5N1
Ph. (416) 412-3070
Fax (416) 412-3042

Ontario
325 Milner Avenue, Suite 1100
Toronto, ON M1B 5N1
Ph. (416) 291-2113
Toll Free (800) 268-5638
Fax. (416) 291-3756

Alberta
1409 Edmonton Trail N.E., Suite 202
Calgary, AB T2E 3K8
Ph. (403) 276-7243
Toll Free (866) 379-8621
Fax (403) 230-3835

10162-100th Street, Suite 200
Edmonton, AB T5J 0P5
Ph. (780) 426-5800
Toll Free (866) 437-5461
Fax (780) 426-6254

British Columbia
555 Sixth Street, Suite 409
New Westminster, BC V3L 5H1
Ph. (604) 540-1200
Toll Free: (866) 599-8364
Fax. (604) 540-1220

Quebec
50 Cremazie Blvd. Ouest, Suite 400
Montreal, QC H2P 2T1
Ph. (514) 383-5711
Toll Free (800) 567-7017
Fax (514) 383-3616

Partners in Credit Inc.

www.Partnersincredit.com

Ontario
9225 Leslie Street, Suite 201
Richmond Hill, ON L4B 3H6
Ph. (905) 886-0555
Toll Free (888) 730-6333
Fax. (905) 886-5784

Quebec
1255 University St., Suite 503
Montreal, QC H3B 3V8
Ph. (514) 739-2900
Toll Free (877) 677-4214
Fax. (514) 875-9337

Saskatchewan
1870 Albert St., Suite 260
Regina, SK S4P 4B7
Ph. (306) 525-9843
Toll Free (877) 525-9843
Fax. (306) 525-9870

Total Credit Recovery Limited

www.Totalcrediting.com

Head Office (Ontario and USA)
225 Yorkland Boulevard
Toronto, ON M2J 4Y7
Ph. (416) 774-4000
Fax. (416) 774-4001

British Columbia & Yukon
205-6011 Westminster Highway
Richmond, BC V7C 4V4
Ph. (604) 231-1500
Fax. (604) 231-1570

Alberta, Saskatchewan, Manitoba, Northwest Territories and Nunavut
10250-101 Street, Suite 1090
Edmonton, AB T5J 3P4
Ph. (780) 423-1515
Fax. (780) 423-1616

Quebec
Agence de Recouvrement TCR Ltee.
4455 Autoroute Laval (440) Ouest, Suite 295
Laval, QC H7P 4W6
Ph. (450) 680-1800
Fax. (450) 680-1900

New Brunswick/Newfoundland/Labrador
Terminal Plaza Building, 1222 Main St., Suite 5001
Moncton, NB E1C 1W6
Ph. (506) 853-0553
Fax (506) 853-7117

Understanding Credit – Part Five

Checking your credit Score

Because lenders check your score, it makes sense to see how lenders see you.  It’s easy to order your own credit report with your credit score online.

An important time to check your score would be six months or so before you plan to make a major purchase, such as a car or home. This will give you time to verify the information on your credit report, correct errors if there are any, and take actions to improve your  score if necessary.  In general, any time you are applying for credit, taking out a new loan or changing your credit mix is a good time to check your score.

How can mistakes get on my credit report?

If your credit report contains errors, it is often because the report is incomplete, or contains information about someone else. This typically happens because:

  • You applied for a credit under different names
  • Someone made a clerical error in reading or entering name or address information from a hand-written application
  • You gave and inaccurate Social Insurance number or the number was misread by the lender.
  • Loan or credit card information was inadvertently applied to the wrong account.

Checking Your Credit Report

Because your score is based on information in your credit reports, it is important to make sure that the information in your credit report is accurate.

You should review your credit report from each credit reporting agency at least once a year and especially before making large purchase, such as a house or car. You have the right to obtain one free copy of your credit report a year from each of the three major credit reporting agencies.

If you report an error to a credit reporting agency, it must investigate and respond to you within 30 days. In addition, if you are in the process of applying for a loan, immediately notify your lender of any incorrect information in your report.

You can also dispute any errors by contacting the credit reporting agencies directly:

Protect your privacy: To reduce the possibility of identity theft, protect your personal information:

  • Don’t carry your Social Insurance card in your purse or wallet. Provide it to others only when absolutely necessary.
  • Shred any documents that contain your Social Insurance number for financial information if you no longer need them. Don’t just toss them in the trash.
  • Keep all you payment tools in a safe place, including credit cards, debit cards, checks and account information.
  • To correct an error on your credit report, work directly with the credit reporting agencies and your creditor, don’t send your corrections to third parties.
  • Don’t send you Social Insurance information in emails.

Monitor for Identity theft:

Another important reason to regularly check your credit report is for an early detection of identity theft. Identity theft is when someone uses your personal information –such as your name, Social Insurance number or other identifying information-without your permission to make purchases, open accounts, take-out loans, buy cars and even get new jobs.

By regularly checking your credit report from each of the credit reporting agencies, you can make sure they are accurate and don’t include activities you haven’t authorized. If you suspect that your personal information has been hijacked and misappropriated to commit fraud or theft, take action immediately, and keep a record of your conversations and correspondence. These four basic actions are appropriate in almost every case.

  1. Call the toll-free fraud number at any one of the three major credit reporting agencies to place a fraud alert on your credit report. You only need to contact one of the credit reporting agencies to have the alert placed on all three. Once you place the alert, you are entitled to order one free copy of your credit report from each of the three reporting agencies.
  2. Contact the lender and close any accounts that have been tampered with or opened fraudulently.
  3. File a report with your local police or the police in the community where the identity theft took place.

Understanding Credit – Part Four

How to improve your credit score

The actual formulas used to calculate credit scores are the property of private companies and are not available to the public. This means it is not possible to know exactly how many points your score will go up or down based on the actions you take.

However, the main factors that are used to calculate your score include:

  1. Payment history
  2. Use of available credit
  3. Length of credit history
  4. Number of inquiries
  5. Types of credit

1. Payment history

This is the most important factor and accounts for 35% of your credit score. It shows:

  • when you paid your bills
  • late or missed payments
  • debts you did not pay that were written off or sent to a collection agency
  • whether you have declared bankruptcy.

Your score will be damaged if you:

  • make late payments—the longer it takes you to make your payment, the worse the impact on your credit report and score will likely be
  • have accounts that are sent to a collection agency
  • declare bankruptcy
  • withhold payments due to a dispute and the lender reports your payments as late.

With certain financial products, any payments you make on time will not be counted and will not improve your credit score. However, if you miss payments and your account is sent to a collection agency, this can be included and will damage your credit score. These products include:

  • chequing and savings accounts
  • student loans
  • prepaid cards (these are not the same as secured credit cards).

Telecommunications accounts, such as mobile phone and Internet, are exceptions. Payments you make on time as well as late payments may be considered for your credit score.

2. Use of available credit

This is the second most important factor and accounts for 30% of your credit score. It is also called “credit utilization.”

To figure out your available credit, add up the credit limits for all your credit products, such as credit cards, lines of credit and other loans.

What counts toward your credit score is how much of your available credit you actually use, not your credit limits by themselves.

When you use a large percentage of your available credit, lenders see you as a greater risk, even if you pay your balance in full by the due date.

Tip to improve your credit score

Try to use less than 35 percent of your available credit.

For example, if you have a credit card with a limit of $5,000 and a line of credit with a limit of $10,000, your available credit is $15,000. Try not to borrow more than $5,250 at any time (35 percent of $15,000).

3. Length of credit history

The longer you have had an account open and used it, the better it is for your score. The length of your credit history accounts for 15% of your credit score.

Your credit score may be lower if:

  • you have credit accounts that are relatively new
  • you close your older accounts and your remaining credit accounts are newer—for example, if you close a credit card account and transfer the balance to a new card.

Tip to improve your credit score

Consider keeping an older account open even if you no longer need to use it, especially if there is no annual fee. Use it from time to time to keep it active.

4. Number of inquiries

When lenders and others ask a credit reporting agency for your credit report, it is recorded as an inquiry. This usually happens when you apply for credit. The number of inquiries accounts for 10% of your credit score.

It is normal and expected to seek credit every so often. But if there are too many inquiries on your credit report, lenders may be concerned. It can seem like you are desperately seeking credit or that you are trying to live beyond your means without the ability to pay back the money you want to borrow.

Multiple credit requests also represent greater credit risk. However the agencies do a good job of distinguishing between a search for many new credit accounts and rate shopping for the best mortgage or auto loan. Your score takes into account:

  • How many new accounts you have. Your Score looks at how many new accounts you have by type of account (for example, how many newly opened credit cards you have). It also may look at how many of your accounts are new accounts.
  • How long it has been since you opened a new account. Your Score may consider this information for specific types of accounts.
  • How many recent requests for credit you have made, as indicated by inquiries to the credit reporting agencies. Inquiries remain on your credit report for two years, although Scores have been carefully designed to count only those inquiries that truly impact credit risk.
  • Length of time since credit report inquiries were made by lenders.
  • Whether you have a good recent credit history, following past payment problems. Re-establishing credit and making payments on time after a period of late payment behavior will help to raise a Score over time.

‘Hard hits’ versus ‘soft hits’

Inquiries that are recorded on your credit report and count toward your credit score are sometimes called “hard hits.” Anyone who views your credit report will see these inquiries. An application for a credit card is an example of a “hard hit.” Rental and employment applications may be treated as “hard hits.”

“Soft hits” are the opposite. Only you can see “soft hits.” These inquiries do not affect your credit score in any way. Examples of “soft hits” include:

  • requesting your own credit report
  • businesses asking for your credit report to update their records about an existing account you have with them. They do this to see whether you qualify for promotions, credit limit increases and so on.

Will shopping around for a car or mortgage hurt my score?

When you are shopping around for a car or a mortgage, try to do it within a two-week period. All inquiries related to auto or mortgage loans made during this time are usually combined and treated as a single inquiry.

Tip to improve your credit score

Limit the number of times you apply for credit in a short period of time. It is a good idea to seek credit only when you really need it.

5. Types of credit

Your score may be lower if you only have one type of credit product, such as a credit card.

It is better to have a mix of different types of credit, such as a credit card, auto loan, line of credit or other loan. It can even help if you have a second but different type of credit card, such as an account with a store.

Tip to improve your credit score

Having a mix of credit products could get you more points, but don’t go overboard! Make sure you can afford to pay back any money you borrow. Otherwise, you could end up hurting your score by taking on more debt than you can handle.

Tips:

  • Do your rate shopping for a given auto, student, or mortgage loan within a short period of time. S Scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.
  • Be careful about opening new accounts that you don’t need. Opening new accounts can lower your Score in the short term. Beware of discounts or low interest rates being offered to entice you to open a new charge account that you don’t need
  • Re-establish your credit history if you have had problems. Opening new accounts responsibly and paying them off on time will raise your Score in the long term.
  • Note that it’s OK to request and check your own credit report and your own Score. This won’t affect your Score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers .
  • Apply for and open new credit accounts only as needed. Don’t open accounts just to have a better credit mix-it probably won’t raise your Score.
  • Have credit cards– but manage them responsibly. In general, having credit cards and installment loans (and making timely payments) will raise your Score. People with no credit cards, for example, tend to be higher risk than people who have managed credit cards responsibly.
  • Note that closing an account doesn’t make it go away. A closed account will still show up on your credit report, and its history will be considered by your Score.

Continue to “Understanding Credit – Part Five”

Understanding Credit – Part Three

How are my debts rated on my credit report?

Lenders may use codes when they send information to the credit reporting agencies about how and when you make your payments. These codes can have two parts: a letter and a number. For example, an account may be coded as R2. The letter stands for the type of the credit you are using.

I – Installment credit

  • You borrow money for a specific period of time and repay it in fixed amounts, on a regular basis, until the loan is paid off.
    ex. Car loan

O – Open status credit

  • You can borrow money when you need to, up to a certain limit.
    ex. Line of credit

R – Revolving or recurring credit

  • You can borrow money up to your credit limit on an ongoing basis. You make regular payments in varying amounts depending on the balance of your account.
    ex. Credit card

M – Mortgage loan

  • Mortgage information may be included on your credit report.
    ex. Mortgage

The codes also use numbers that range from 1 to 9. The best rating is 1. It means you pay your bills within 30 days of the billing date. Ratings of 1 will help you achieve a strong credit score.

Any number higher than 1 will likely hurt your credit score. The worst rating you can receive is 9. It usually means the lender has written your account off or sent it to a collection agency.

0 – Too new to rate, Approved, but not yet used

1 – Paid within 30 days of billing, Pays as agreed

2 – Late payment: 31–59 days late

3 – Late payment: 60–89 days late

4 – Late payment: 90–119 days late

5 – Late payment: more than 120 days late, but not yet rated “9”

6 – This code is not used

7 – Making regular payments under a consolidation order, orderly payment of debts, consumer proposal or debt management program with a credit counselling agency

8 – Repossession

9 – Written off as a “bad debt”, Sent to collection agency, Bankruptcy

Each of your credit accounts will have one of these codes. The codes can be different depending on how you make your payments for each account.

For example, if you have a credit card account that you paid on time, it will be reported as “R1.” If you also have a line of credit, and you missed your payment by 45 days, it would show up as “O2.”

How can I build my credit history for my credit report?

It is important to begin building your credit history early. If you do not have a credit history, it is much harder for lenders to make a decision about you, since they have nothing to base it on.

One of the best ways to build a credit history is to apply for a credit card and make your payments on time.

It can sometimes be hard to get a regular credit card if you are a young person, a recent immigrant or have had trouble with credit in the past.

An option is to apply for a secured credit card. You need to provide the credit card issuer with a deposit. Usually, the amount required for a deposit is equal to the credit limit for the credit card. When you make payments on the balance of a secured credit card, it will be reported to the credit reporting agencies in the same way as a regular credit card. This can help you build a credit history or rebuild a poor one.

Continue to “Understanding Credit – Part Four”

Understanding Credit – Part Two

Who can use my credit report and score?

There are regulations in place to protect your personal information, including your credit report. Usually, your credit report can only be used to:

  • lend money or extend credit to you
  • collect on a debt you owe
  • consider you for rental housing or for a job
  • provide you with insurance (some provinces have restrictions)
  • meet a direct business need.

Lenders, employers or landlords can only use your credit report when you give your consent and, in some provinces (including Nova Scotia, Ontario, Quebec, Prince Edward Island and Saskatchewan), after they tell you they will be checking your report.

Usually, when you sign an application for credit, you allow the lender to access your credit report. Your consent generally lets the lender use your credit report when you first apply and anytime afterward while your account is open.

In many cases, your consent also lets the lender share information about you with the credit reporting agencies if your application is approved.

Some provincial laws permit government representatives, including judges and police, to see parts of your credit report without your consent.

In some provinces, your credit score cannot be used to decide whether you qualify for insurance or to determine how much you will be charged for insurance coverage. In some cases, insurers are not allowed to use your credit score when deciding whether to offer you specific types of coverage, such as auto or mortgage insurance.

Some provinces require lenders and others to tell you if your credit report led to you being refused for a benefit or service, or if you have to pay more for it.

What is in my credit report?

Your credit report may contain the following information:

Personal information

  • Name
  • Date of birth
  • Current and previous addresses
  • Current and previous telephone numbers
  • Social insurance number (SIN)
  • Driver’s licence number
  • Passport number
  • Current and previous employers
  • Credit accounts and transactions, such as credit cards, retail or store cards, lines of credit and loans
  • Telecommunications accounts, such as mobile phone and Internet
  • Negative banking information, such as chequing and savings accounts closed “for cause,” due to money owing or fraud committed by the account holder, and bad cheques (also called non-sufficient funds or NSF cheques)
  • Public records, such as bankruptcy and legal judgments, and registered items, such as a lien on a car or house that allows the lender to seize it if you do not make payments
  • Debts sent to collection agencies
  • Inquiries from lenders and others who request your credit report
  • Remarks including consumer statements, fraud alerts and identity verification alerts.

Is my mortgage included in my credit report?

Your mortgage information and your history of mortgage payments may appear in your credit report and may count toward your credit score. This depends on the practices of each credit reporting agency.

A home equity line of credit that is added to your mortgage will be treated as part of your mortgage for your credit report. If your home equity line of credit is a separate account from your mortgage, it can be reported separately.

How long does information stay on my credit report?

By law, negative information can only be kept on your credit report for a certain length of time. For most information, the maximum is six or seven years. The exact amount of time varies by category and by province or territory. Positive information, such as accounts that you paid on time, may be kept longer.

Equifax and TransUnion keep your information for different lengths of time, up to the maximum time limits allowed by provincial laws.

Type of information​

How long agencies keep information​

Date when agencies start counting​

Credit transactions

  • Negative information about accounts such as credit cards, lines of credit and loans
  • Also called “trades” or “trade lines” by credit reporting agencies
  • 6 years
  • Equifax counts from date of last activity (for example, a payment you made)
  • TransUnion counts from date of first delinquency—the date you first defaulted on the account (for example, by making a late payment) without returning to good standing

Secured loans

  • Loans backed by an asset, such as a mortgage, a car lease or loan
  • 6 years
  • Equifax only: 7-10 years in P.E.I
  • Equifax counts from date of filing
  • TransUnion counts from date of first delinquency

Banking items

Negative information, including:

  • chequing and savings accounts closed “for cause” due to money owing or fraud committed by the account holder
  • bad cheques (also called non-sufficient funds or NSF)
  • 6 years

  • Equifax counts from date of transaction or default
  • TransUnion counts from date of write-off or date closed, whichever is sooner

Inquiries

  • ​Equifax: 3 years
  • TransUnion: 6 years
  • Counted from date inquiry is made

Judgments

  • Legal judgments against you and other information in public records

  • 6 years
  • Equifax: 7–10 years in P.E.I.
  • TransUnion: 7 years in Ontario, Quebec, New Brunswick and Newfoundland and Labrador; 10 years in P.E.I
  • Counted from date of filing

Collections

  • Debts sent to collection agencies
  • ​6 years
  • Equifax counts from date the debt is assigned to a collection agency
  • TransUnion counts from date of first delinquency (when the account became delinquent with the original lender, not when it was sent to a collection agency)

Registered items

  • Items registered in public records, such as a lien against your property

 

  • Equifax: 6 years,
    except in P.E.I. where it is 7–10 years
  • TransUnion: 5 years
  • Counted from date of filing

Bankruptcy

  • Legal procedure used as a last resort if you are unable to repay your debts

 

  • 6 years
  • TransUnion only: 7 years in Ontario, Quebec, New Brunswick, Newfoundland and Labrador, and P.E.I

  • Counted from date of discharge.
  • If not discharged:
    • Equifax keeps for maximum of 7 years from filing date
    • TransUnion: no time limit

Multiple bankruptcies

  • Legal procedure used as a last resort if you are unable to repay your debts

  •  14 years

 

  • Counted from date of discharge for each bankruptcy​

Consumer proposals

  • Formal procedure to repay your debts, arranged by trustee in bankruptcy or other authorized agent
  • 3 years
  • Equifax counts from date paid.
  • TransUnion counts from date satisfied or 6 years from filing date, whichever is sooner
  • If not paid or satisfied, maximum is 6 years from filing date

Orderly payment of debts (OPD)

  • Also known as a consolidation order
  • Formal procedure to repay your debts, arranged through a court
  • Only available in Alberta, Saskatchewan and Nova Scotia
  • Equifax: 3 years
  • TransUnion: OPD itself is not reported
  • Equifax counts from date paid
  • TransUnion: individual accounts included in OPD stay on file for 2 years from date OPD is satisfied or 6 years from date of first delinquency, whichever is sooner

Debt management program (DMP) with credit counselling agency

  • Program to help you repay your debtsNote: credit counselling by itself (without DMP) is not noted on your credit report

 

  • Equifax: 3 years
  • TransUnion: DMP itself is not reported

  • Equifax counts from date paid. If not paid, counts for a maximum of 6 years from filing date
  • TransUnion: individual accounts included in DMP stay on file for 2 years from date DMP is satisfied or 6 years from date of first delinquency, whichever is sooner

Remarks

Statements you can add to your credit report, including:

  • consumer statements
  • fraud alerts
  • identity verification alerts.
  • 6 years

  • Counts from date reported to agency

 

 Continue to “Understanding Credit – Part Three”

Understanding Credit – Part One

Understanding Credit

In Canada we have two major credit reporting agencies, Equifax and TransUnion. These two agencies receive monthly updates from your creditors on payments made and any delinquencies. The creditors that report to Equifax and TransUnion would be your credit cards, loans and lines of credit, in addition to certain bills, such as telephone, cable, internet as well as some utility companies. Some mortgage companies would also report.

The information your creditors provide allows the agencies to create your credit report and credit score and this score and report are used by other creditors to determine if they want to offer you credit facilities, to lend you money, to determine how much they will charge you in interest and is sometimes used by employers and landlords to determine your reliability.

As you might be aware, Equifax and TransUnion are not government bodies but are independent businesses; therefore, you have the right to receive a free copy of your credit report. However, this free report does not contain the credit score, in order to receive a copy of your credit score you would need to purchase your credit report and score from the agencies. This can be done online at their respective websites: Equifax.ca and TransUnion.ca.

What is a credit report?

A credit report is a summary of your credit history. It contains factual information about your credit facilities, such as:

  • when you opened your account
  • the credit limit
  • how much you owe
  • whether you make your payments on time
  • whether you miss payments
  • whether you go over your credit limit.

Chequing and savings accounts that have been closed “for cause,” due to money owing or fraud committed by the account holder, can also be included.

What is a credit score?

A credit score is a three-digit number that is calculated using a mathematical formula based on the information in your credit report. You get points for actions that demonstrate to lenders that you can use credit responsibly. You lose points for things that show you have difficulty managing credit.

In Canada, credit scores range from 300 to 900 points, with 900 being the best score.

Lenders and credit reporting agencies produce credit scores under different brand names, such as Beacon (Equifax), Empirica (TransUnion) and FICO®.

Your score will change over time as your credit report is updated.

It is up to each lender to decide on what their lending guidelines are. For instance, major banks will have more stringent lending requirements and would normally require a higher credit score, of approximately 640 plus. Whereas, smaller less known lenders may be willing to lend with a score closer to 600, as long as you have the income to make the payments.

Lenders may also use your score to set your interest rate and credit limit. If you have a high credit score, you may be able to get a lower interest rate on loans, which can save you a lot of money over time.

While they are very important, credit scores are usually not the only thing a lender will look at when trying to determine if they are going to offer you credit. Often, they will also consider other factors, such as your income, job or any assets you own.

 Continue to “Understanding Credit- Part Two”