Avoid Credit Counselling
Credit Counselling:
As damaging to a credit rating as a bankruptcy but without reducing the debt;Credit counselling is an option that should be considered with great care because there are so many misunderstandings about credit counselling. For example most Canadians are not aware that non profit credit counselling agencies DO charge their clients fees and sometimes very large upfront fees. First Canadian Debt Solutions Inc., experienced and licensed representatives know the pro's and con's to credit counselling programs. We offer a free and no strings attached consultation that will explain to you all of your options and if credit counselling is right for you. The main concern with credit counselling agencies is that usually credit counselling is the only debt solution they offer so of course they are going to say it is your best and only option. Many also assume that credit counselling is a better option to bankruptcy or consumer proposals. What most don't know is that credit counselling DOES put a notation on your credit report and is very damaging to your credit score.
CAUTIONS REGARDING CREDIT COUNSELLING IN CANADA
The Financial Consumer Agency of Canada (FCAC) advises Canadians to do their homework about credit counseling services before entering into an agreement. There are different fee structures for Canadian profit and non profit credit counseling companies, as well as what services are offered for those fees. Consumers considering entering into a credit counselling program should also be aware that an R7 credit rating will be entered in their credit report and that their report will show they used credit counselling. A notation will remain on the report for at least two to three years after the credit counseling program is completed. Lenders, employers and landlords may view this information on the individuals credit report, if the consumer signs an application form that grant them permission to do so.
