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
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.
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.
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.
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!