{"id":802,"date":"2020-06-29T16:44:53","date_gmt":"2020-06-29T16:44:53","guid":{"rendered":"http:\/\/gothandcompany.com\/\/?page_id=802"},"modified":"2020-07-28T18:25:07","modified_gmt":"2020-07-28T18:25:07","slug":"and-credit-ratings","status":"publish","type":"page","link":"https:\/\/gothandcompany.com\/consumer-proposal\/and-credit-ratings\/","title":{"rendered":"Consumer Proposals and Credit"},"content":{"rendered":"\n[et_pb_section fb_built=”1″ _builder_version=”4.4.8″][et_pb_row _builder_version=”4.4.8″ width=”100%”][et_pb_column type=”4_4″ _builder_version=”4.4.8″][et_pb_text _builder_version=”4.5.1″ header_font=”||||||||” header_line_height=”1.3em” custom_padding_tablet=”|80px||80px|false|true” custom_padding_phone=”|40px||40px|false|true” custom_padding_last_edited=”on|desktop” hover_enabled=”0″ header_font_size_tablet=”6vw” header_font_size_phone=”9vw” _module_preset=”73e9af3e-a756-470b-a76a-6dad72cf9ad8″]

Consumer Proposals & Credit Ratings<\/h1>\n

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Rebuilding Your Credit After A Consumer Proposal<\/h2>\n

For many insolvent Canadians, the burden of a high debt-load is often made worse by long-term implications arising from poor credit history. Having \u201cgood credit\u201d is often just as much a priority as getting out of debt. It is important to remember which should come first. It will be impossible to achieve a high credit score if there are unpaid debts on your file. Once you get out of debt, you can take steps to rebuild and improve your score. First, get out of debt, then start working on your credit. Consumer proposals<\/a> will eliminate your debt and result in an R7 consumer proposal credit rating, laying a solid foundation for you to start rebuilding a strong history of “good credit”. This article has information to help you develop the habits that support a good credit history and improve your credit score after completing a consumer proposal.<\/p>\n

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Your Credit Report<\/a> \u2013 How does it work?<\/h3>\n

Your credit report summarizes your credit history, which is a record of borrowed money and credit usage that follows you throughout your life. Financial institutions and companies that lend money or provide credit send your account information to credit reporting agencies, which are private companies that record and interpret the data to provide an overall credit score.<\/p>\n

There are two major credit reporting agencies in Canada<\/strong>: Equifax<\/a><\/strong> and TransUnion<\/a><\/strong>. These two agencies keep a collaborated history of debts and obligations including credit cards, cell-phone networks, utility bills, and more. Any creditor can report a debt<\/strong> to these agencies and many are automatically reported<\/strong>. Your credit report includes your credit history and a statistical analysis indicating how likely you are to pay your bills on time. There is also a risk-based score based on your history and multiple other factors. This is what future creditors will use when considering if you qualify for their offerings.<\/p>\n

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R7 – Consumer Proposal Credit Rating<\/strong><\/h2>\n

Where Does it Come From?<\/h3>\n

Did you know that there is a Financial Consumer Agency of Canada<\/a> that is responsible for protecting your rights and responsibilities as a consumer? This is where we can find the policies surrounding credit and lending in Canada, including what information can be collected by the credit reporting agencies and what it all means. The ratings on your credit report<\/a> are actually codes with information about how you make payments.<\/p>\n

The “R” from the consumer proposal credit rating indicates that it is a revolving or recurring credit. This simply means that you are making regular payments depending on how much you owe. The “7” from the consumer proposal credit rating indicates that the payments are being made as part of a debt management solution.<\/p>\n

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A Complete List of Ratings for R-Type Credit:<\/h3>\n