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Credit Advice & Questions

Credit Advice - "4 things that may surprise you that can effect your credit"    (Wednesday, January 15th, 2020)

Here are 4 different things that can effect your credit score and they are ones we run into frequently with clients who fall within all ranges of credit score.

1. Municipal Debts - Depending on where you live in Canada there can be a number of different things that may report to your credit bureau. These can include things like parking tickets and in Alberta a very common one is ambulance trips as a portion of these are billed to the user.

2. No Current Loans - In Canada your credit takes into account a number of factors and this includes things like loans and credit cards. If you have credit cards but no loans this lack of diversity can limit your scoring. A regular loan has a greater impact on credit scoring that revolving credit such as credit cards.

3. Paying Cash - If you have a credit card use it to some extent on a monthly basis while keeping the balance under 30%. After a period of time, if you do not use your credit card, the company may stop reporting it to the credit bureau and may even cancel your card which can create a negative effect as we touch on in our next point.

4. Closing Accounts - When deciding if you are going to close an account, such as a credit card, always keep in mind the length of your credit history can make up around 15% of your scoring. If you close one of your longest standing accounts this can have the opposite effect you may have been planning. Keep this in mind and if you are unsure it is a great reason to speak with someone and this is an area can help.

The topic of next Wednesday's post is:  "5 tips to help improve your credit"

Feel free to contact us via email or live chat with your questions.

Posted: Facebook 1/15/2020

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Q. Is this a loan?

A. No, the credit rebuilding program is designed to give you the ability to use your own savings as a new credit trade line to report to the credit bureau as a monthly payment. Each payment you make will improve your credit score. It is a unique program unlike anything else available.

Q. How can a agreement help me?

A. Simply put an improved credit score will allow you to have access to lower interest rates, will give you affordable lower monthly payments and save you thousands of dollars.

Q. When does it make the most sense to use to improve my credit score?

A. Ideally, before you make any large purchase such as a car or home. Improving your credit score beforehand will ensure that you are getting the lowest interest rate possible which will save you thousands of dollars over the term of your loan.

Q. Is there any benefit to if I am already in a high interest loan or if, due to circumstances, I must make a purchase before I fix my credit?

A. Yes, the faster we improve your credit the faster you can qualify for better rates and save money on interest payments.

Q. How long does it take to improve credit score?

A. The amount of time takes to rebuild credit varies on what is on your credit bureau. The good news is no matter what has happened in the past that is behind you!

Credit care is a great way to re-establish new credit when recovering from a recent bankruptcy, consumer proposal or credit counselling. All these have a huge impact on your credit score. You can use the program to rapidly improve your credit score and help you move toward your goals.

Q. Are you going to do a credit check?

A. No, there is no credit check required to set up your agreement.

Q. Are there any penalties for ending my agreement early?

A. No, your agreement can be cancelled at anytime without a penalty.

Q. Why would I choose a larger vs. smaller agreement amount?

A. While all agreements, no matter what amount, build credit score a larger amount shows potential creditors your ability to make and maintain a higher payment. Think of your credit score allowing you access to higher amounts of credit like steps on a ladder. The larger the amount the higher up the ladder you can access.

Q. How long should I keep my agreement active?

A. Each month your payment reports to the credit bureau there is a benefit to your credit score. To get the most benefit, keep your agreement active for a minimum of 12 to 18 months. This benefits your credit score and shows future creditors your ability to pay consistently over time.

Q. Why do you also recommend getting credit cards to build credit?

A. Credit cards, whether they are secred or not, that report to the credit bureau will give your credit a boost. Although credit cards boost score less than a loan does it is still a good part of a credit rebuilding strategy. However, just making your credit card payment is not enough, you need to know how to use them properly. ( Refer to this article )

Q. Why does applying for credit frequently have a negative effect on my credit report?

A. Typically, every time you apply it costs points off your credit score. If you apply for a lot of credit it will cause your credit score to drop. This can make getting approved more difficult and result in a higher interest rate.

Q. What is the history of

A. is a division of Finance West Inc., a Calgary based company established in 2010. was created to provide Canadians an opportunity to rebuild, repair or establish new credit at fair interest rates and payment options. More information on Finance West is available online at

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