FAQ's
What is the Credit Bureau?
The Credit Bureau is a clearing house of credit history information. Credit granters provide the bureau with factual information on how their customers pay their accounts. The bureau then assembles this information into a file on each customer. The file also includes identifying information; a list of who has inquired on the file in the past three years; public record information such as liens, judgements and bankruptcies; accounts listed with various collection agencies; and Debt Management Plan (DMP) from credit counselling.
Why is my DMP program included on my credit file?
Your Debt Management Plan is an important part of your credit history. The DMP notice indicates to creditors that you have endeavoured to resolve your debts equitably.
How long does my DMP stay on my credit file?
DMP notice remains on file three years from the date of successful completion of the program. Your DMP is considered successfully completed when all debts included in the program are paid out. All debts paid through the DMP program will be removed from the credit file at the same time as the DMP notice.
How will my credit file be affected if I do not complete my DMP program?
Credit Counselling only reports successful DMP to the Credit Bureau. If you do not complete your program the DMP will not be reported to the credit file. Debts reported on file and included in the program may remain on file longer if you do not complete your DMP program than if you do complete the program. Length of time information remains on file when it is not included in a completed DMP program is:
How does my DMP affect my Credit Rating?
It is difficult to say, the Credit Bureau does not rate the information contained in the credit reports and there is no overall standard rating for any credit file. The decision to grant credit is made by every creditor individually. Each creditor has its own credit-granting criteria and rates your file accordingly.
How can I get a copy of my credit file?
You can request a copy of your credit file by mail. In the letter include: your current address, any former addresses in the past two years and two or three pieces of ID. At least one piece of ID should include a signature and address information. Although not a requirement, you should also provide your date of birth, Social Insurance Number and current employment. Your birth date, SIN and employment are used to identify you. Your file will be mailed to you and should arrive within ten days from the day your request is processed.
Credit Bureau Reporting Agencies are:
Address: Equifax Canada Inc., Box 190, Jean Talon Station, Montreal, P.Q. H1S 2Z2
Telephone: (800) 465-7166 Fax: (514) 355-8502 Email: consumer.relations@equifax.com
Address: Trans-Union Of Canada Inc, 170 Jackson St. East, Hamilton , Ont. L8N 1L4
Telephone: (800) 663-9980 Fax: (905) 527-2360
How do I read my credit rating report?
R0 -Too new to rate; approved but not used.
R1 -Pays within 30 days of billing, or pays as agreed.
R2 -Pays in more than 30 days but less than 60 or one payment past due.
R3 -Pays in more than 60 days but less than 90 or two payments past due.
R4 -Pays in more than 90 days but less than 120 or three or more payments past due.
R5 -Account is at least 120 days past due but not yet rated "R9".
R6 -No rating exists.
R7 -Paid through a consolidation order, consumer proposal or credit counselling debt management program.
R8 -Repossession.
R9 -Bad debt or placed for collection or bankruptcy.
Your credit file is a history of how you have handled the privilege of credit. Credit is a responsibility that must be treated wisely, otherwise careless use or irresponsible use of credit will usually lead to financial trouble.
How do I deal with my creditors when they call?
Keep a concise and accurate record of the person you talked with, company name, date, time, phone number and what was said and how it was said.
Avoid making promises you can’t keep.
Never mail cash, keep receipt/copy of all your cheques/money order.
Be realistic - If you offer to make payment make sure you can afford it.
Be reasonable- Creditors will want to get paid back within a reasonable amount of time.
Be specific- Tell the creditor when you will contact them in the future. Tell them which month or what day. Make sure to follow up with a letter.
For more information on the proper use of credit call Credit Counselling Service of Simcoe County at (705) 726-2705 or 1-800-284-6525.