Credit Coaching

If you want a set of instructions and a great headstart, then the Credit Coaching program is the one for you. Mezed financial Services will review your credit reports and provide you with customized options to help you accomplish your credit goals. This plan will include step by step actions and all the required dispute letters. We will make recommendations for more drastic measures such as Consumer Credit Counseling, Consumer Proposal or even Bankruptcy and provide you with the consequences of each option. Unfortunately sometimes these are actually your best options.

• You may be able to negotiate a $1500 debt for $800 instead of $1200
• You improve your score by an extra 20 points leading to a ¼ point reduction in your mortgage rate
• You can now get an unsecured credit card freeing up hundreds of dollars in security deposit
• Having the direction and expertise as well as completed letters saves you the stress and frustration of doing it yourself.

Do-It-Yourself

Step One: Validate the Information

• Order a copy of your credit report. Make sure to get a copy from both Equifax and TransUnion. 
• When you receive copies of these reports (usually two to three weeks), you will need to review and analyze all the information contained within. It is very important that the information contained within is accurate. Make a list of inaccurate information.
• Prepare and send dispute letters to each of the credit reporting agencies for each questionable item. Information as to the format of these letters can be found on each of the Equifax and TransUnion websites. Be sure that these letters are sent via registered or certified mail.
• Wait for a response to these letters; it will likely take at least four weeks. Once you received your credit it will either be updated or you will have to deal directly with the original creditor or collection agency.
• Prepare and send dispute letters to the collection agency or original creditor as well as to the credit reporting agencies. Make sure you give 30 days deadline from receipt of the letter. Your intent is to have them verify the information that they are reporting. The key to this step is in the wording. As original creditors are not required to verify anything they report, you have to request an investigation as to the legitimacy of their claim. This will likely invoke an investigation, which may or may not result in a response.
• If you do not get the response that you are looking for and you do have proof that the information is inaccurate, you will have to deal with your provincial department of consumer affairs and file a complaint.

Step Two: Resolving the Debt

Now that you have verified all of the information that is being reported on your credit bureau, it is time to start addressing current outstanding issues.

• Pay off/settle outstanding debts: start with the smallest balance items first. Clear up any collection/negative items as soon as possible. Once the balance is paid and shown as zero, the future negative impacts will be minimal. Keep in mind that creditors can remove some inaccurate negative items. Use this as a negotiation tool when paying off these accounts.
• Balance control: ensure that all revolving credit items have a current balance that is below 50% of the credit limit. Most creditors will not extend credit when all credit items are at their current limit. This is called overextension and reports negatively towards your credit score.

Step Three: Improve your Credit

• Establish good credit items: this can be achieved through items such as a secured credit. It is very important to have positive items reporting monthly; this is the only way to have your credit score increased.
• Debt management: be sure that you are not late on any monthly payments. Pay off balances as much as possible. Do not apply for new credit unless it is necessary. 

If you find this task overwhelming, then there is value in a proper credit repair company. The experience of Mezed Financial Services is here to help.