Credit Report Analysis

Your credit report is how creditors and lenders determine their financial risk in granting you a loan or line of credit. These reports are provided by credit reporting agencies also known as credit bureaus, and sometimes they contain inaccurate, incomplete, outdated and sometimes even misleading information that could cause you problems including:

• Being denied a loan or line of credit
• Having to pay a much higher interest rate on any credit or loan amount for which you are approved than someone who has good credit would have to pay
• Having to settle for much smaller lines of credit and greatly increased difficulty in getting an increased line of credit than someone with good credit
• Insurance coverage denial or loss and
• Loss of employment opportunities as employers is also requesting credit reports for prospective employees.

Derogatory or negative credit items

A derogatory or negative credit item is a bad mark on your credit. For example, if a creditor says you are 30 days late on a payment, it’s considered a derogatory or negative credit item. Other examples of derogatory or negative credit items include: other late payment information in increments like: 30, 60, 90, 120, days late; loan default; collections; charge-offs; judgments. Judgments are also considered public information. Bankruptcy is also considered a derogatory or negative credit item.

Charge-off

If you become seriously delinquent on an account, which most people who have filed bankruptcy have, the creditor may decide that you probably won’t pay the debt. If this happens, the creditor writes the debt off as a loss for tax purposes—the charge-off. However, even though the creditor writes off the debt, they still will continue to attempt to collect on the debt until they are notified that you have filed for bankruptcy. Charge-offs, like other derogatory items are bad news for your credit report and your credit score. If the debt has been discharged through your bankruptcy, the charge-off should no longer appear on that account because it is included in your bankruptcy.

Length of time negative items remain your credit

The law mandates that a negative item must remain on your credit report for no more than seven years (six years with some items, and in some provinces), the creditor can remove it sooner if they see fit to do so. Inquiries can only stay on your credit report for up to two years (as long as the minimum number is present). However, if an account has been discharged through your bankruptcy, all negative items must be removed and the account should instead indicate that it was included in your bankruptcy.

Time for change

No matter what negative items are on your credit report: bankruptcy, charge-offs, late payments, judgments, or any other derogatory information, we can help remove those items that are inaccurate, erroneous, misleading or outdated from your credit report.