Glossary
Credit repair is when you try to improve your credit rating. Ways to do this include fixing wrong information on your credit report and paying your bills on time.
A credit repair company is a business that promises to “fix” or improve your credit score or credit report for a fee. Usually, these companies can’t do anything that you can’t do yourself.
A credit report, sometimes called a consumer report, shows details of your credit history. For example, it shows whether you have paid back money you owe or paid your bills on time. It will also say if you’ve filed for bankruptcy, or have been discharged from bankruptcy in the last 6 years. A credit report is not the same as a credit score.
In Debt and Consumer Rights, Income Assistance, Other benefits
A credit score is a number given to you by a consumer reporting agency. Creditors check your score to see how likely you are to pay back your debts. They use it to decide whether to lend you money. Your credit score is based on the information in your credit report.
High credit scores are good, and low credit scores are bad. Usually, the lowest score you can have is around 300, and the highest around 850. Good credit is usually considered 700 or more. Sometimes, credit scores are turned into a letter and number combination. In this system, R9 is the worst credit rating and R1 is the best.
A creditor is a person or business you owe money to. For example, this could be:
- the bank that gave you a mortgage loan
- the credit card company that lets you pay for things on credit
- your landlord, if you owe rent
- your utility company, if you pay for hydro or gas
Debt settlement companies are businesses that promise to help you get rid of your debts. They usually charge you a fee to negotiate with your creditors and make a repayment plan.
In Debt and Consumer Rights, Tribunals and Courts
A debtor is someone who owes money. For example, a debtor can be someone who owes money on a mortgage, car loan, line of credit, phone bill, or credit card.
In Debt and Consumer Rights, Family Law, Tribunals and Courts, Wills and Powers of Attorney
Debts are money that a person owes, for example, a mortgage, line of credit, or car loan.
A deed is a legal document that proves you are the owner of a specific piece of land (real estate).
Being in default is when you do not do something you legally agreed to do. For example, defaulting on a loan means that you did not pay back some or all of the money that you owed in the time you were supposed to pay it.