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CREDIT

REBUILDING

ABSTRACT Everything you need to understand about credit

repair: what good credit looks like, what appears on

your credit report and what you can do to improve

your credit score.

Hoyes, Michalos & Associates Inc. Debt Free in 30

pg. 1

CREDIT REBUILDING 101

Contents Building Good Credit ..................................................................................................................................... 2

What Does Good Credit Look Like? .............................................................................................................. 3

Understanding Credit Reporting ................................................................................................................... 4

What Affects Your Credit Score ................................................................................................................ 7

What Credit Score Do I Need? .................................................................................................................. 9

Strategies for Rebuilding Credit .................................................................................................................. 10

Should I Use a Credit Repair Company? ..................................................................................................... 13

pg. 2

Building Good Credit Whether you have been turned down for a loan due to bad credit or have filed a consumer proposal or

bankruptcy and are looking to repair your credit, the steps to building and keeping good credit are the

same.

Your credit rating affects your ability to access credit but even more importantly, it affects what that

credit will cost. Getting a car loan, mortgage or unsecured line of credit after bankruptcy or a proposal

is possible and the better your credit rating when you apply the lower your interest rate will be.

Having good credit is a byproduct of managing debt wisely. This guide will explain what good credit

looks like and how the credit reporting industry works. We will also talk about what actions you can take

to establish and maintain a good credit rating for life.

pg. 3

What Does Good Credit Look Like? Good credit is the ability to borrow money at the lowest interest rate possible, given market conditions.

Lenders want to loan money, but at the same time they want to be repaid. If you are considered a credit

risk because you’ve made some debt mistakes, lenders worry that you might not repay the loan. They

base this assessment on the behavior of past customers. Statistics tell them that if you’ve missed

payments in the past, if you carry a lot of debt relative to your income, or if you’ve filed bankruptcy, you

are a high credit risk and they might not be able to recover all of their money. To make sure they make a

profit on their loans, lenders charge a higher rate of interest to high risk borrowers. The high interest

everyone with poor credit pays offsets the money lenders lose from those who do default on their debt.

Having good credit means creditors classify you with a different pool of borrowers. Again, lenders know

what good credit looks like because they have a large pool of past experience to go by. You can get into

in this group of good credit borrowers by creating the same pattern of behavior as these types of

borrowers. To do this you need to establish a good credit history. Good credit happens when you have a

positive record of borrowing money, making payments on time and paying off loans.

Good credit also means not having too much debt. That makes sense because if you are carrying too

much debt relative to your income, there is a higher chance that you will miss a payment and at some

point not be able to repay all that debt.

IN SUMMARY, GOOD CREDIT MEANS:

HAVING A GOOD HISTORY OF BORROWING AND REPAYING CREDIT;

CARRYING THE RIGHT AMOUNT (AND WE’LL SEE LATER THE RIGHT TYPES) OF CREDIT GIVEN YOUR INCOME AND THE

ASSETS YOU OWN.

pg. 4

Understanding Credit Reporting While individual lenders have a lot of customers whose experience they can draw on to make lending

decisions, in general lenders rely on the credit information contained in your credit report. Gone are the

days when you went in to talk to your lender who loaned you money based on a personal meeting.

Today it’s all about data and credit scores. Rather than analyzing this data themselves, lenders rely on

credit bureaus to do all the tracking and analysis.

In Canada there are two main credit bureaus: TransUnion and Equifax.

Credit bureaus receive information from companies that loan you money or give you credit including

banks, credit unions, credit card companies and mortgage companies. Not all loans are reported on your

credit report. For example, most payday loan lenders and private lenders typically do not report activity

to the credit bureaus.

What’s on Your Credit Report?

Your credit report includes some basic personal information, information about your loans and payment

history, as well as public information including whether or not you filed a bankruptcy, proposal or debt

management plan.

Personal information will include your name, current and prior addresses, employment history, birth

date, social insurance number, contact information such as personal and work phone number, and may

contain your driver’s license and passport.

Credit account and banking information are provided by your lenders to the credit bureau. It covers

what you owe and what your payment history looks like. Information is usually updated every 30 days

and will include when the account was opened, your credit limit, the outstanding balance, and monthly

payment amount. This is where potential lenders can see how many payments are past due (and how

long) and if the account has been sent to collections or has been written off as uncollectible.

Public records and other information is where other legal matters will appear. This includes any

judgments filed against you, liens and secured charges, settlements or partial settlements with

collection agencies and bounced or returned cheques. This is where a bankruptcy, consumer proposal

or debt management plan will be recorded on your credit report.

Credit inquires will list companies who have requested a copy of your credit report, including the date

and company name. In addition to lending institutions, potential landlords and employers may request a

copy of your credit report. Parties requesting your credit report can only do so if you have granted them

permission.

pg. 5

How Are Payments Reported?

Lenders use codes to tell the credit bureau what your payment history looks like. The code consists of a

letter to identify the type of loan and a number to indicate payment history.

Loan Codes:

I: Installment loan (e.g. car loan)

0: Open credit (e.g. line of credit)

R: Revolving credit (e.g. credit card debt)

C: Sometimes used for line of credit (in place of revolving)

M: Mortgage loan

Payment History Codes:

0: too new or approved but not used

1: paid within 30 days or as agreed (i.e. on time)

2: late payment one month behind

3: late payment two months behind

4: late payment three months behind

5: late payment more than 30 months but not yet rated “9”

7: making payments under a debt plan including a consolidation order, orderly payment of

debts, consumer proposal or debt management plan with a credit counselling agency

8: repossession

9: written off as bad debt, sent to collection or bankruptcy

How is a bankruptcy or consumer proposal reported on my credit report?

A reference to your bankruptcy or consumer proposal will appear in two different sections of your credit

report.

The fact that you have filed a bankruptcy or consumer proposal is reported in the legal or public

records section of your report. When you file bankruptcy or a consumer proposal, a notice will

appear in this section listing the type of proceeding and the date you filed. When you are

discharged (or complete your proposal) this information is updated with the discharge or

completion date. This information is provided by the Office of the Superintendent of

Bankruptcy. The notice will be removed based on time periods set by the credit bureau, which

we outline in the next section.

Each individual creditor will also report that the account was “included in bankruptcy” or

“included in proposal”. Individual creditor information is generally purged six years after the

date of last activity. For some creditors, that will be the date of your last payment. For other

creditors that may be the date of filing of your bankruptcy or consumer proposal. Regardless,

the legal section of your credit report will show the start and end date of your filing, and that is

the most important date that credit grantors should review. Occasionally creditors will report

accounts as ‘included in bankruptcy’ when they are actually included in a consumer proposal.

The proper legal proceeding will appear in the public records (legal) section of your report.

pg. 6

When should my bankruptcy or consumer proposal be removed?

TRANSUNION REPORTS THAT

ALL ACCOUNTS REPORTED AS SATISFIED THROUGH THE PROPOSAL WILL BE REMOVED FROM YOUR FILE THREE (3)

YEARS FROM THE DATE YOU SATISFIED THE PROPOSAL OR (6) YEARS AFTER THE DATE YOU DEFAULTED ON THE

ACCOUNT, WHICHEVER DATE COMES FIRST.

A FIRST TIME BANKRUPTCY WILL BE REMOVED FROM YOUR CREDIT REPORT IN ONTARIO SEVEN (7) YEARS FROM

THE DATE OF DISCHARGE

For more information on how long TransUnion keeps information on file see

https://www.transunion.ca/ca/personal/consumersupport/faq/general_en.page#Retention

EQUIFAX STATES THAT:

WHEN A REGISTERED CONSUMER PROPOSAL IS PAID, IT WILL AUTOMATICALLY PURGE THREE (3) YEARS FROM THE

DATE PAID

A BANKRUPTCY AUTOMATICALLY PURGES SIX (6) YEARS FROM THE DATE OF DISCHARGE IN THE CASE OF A SINGLE

BANKRUPTCY. IF THE CONSUMER DECLARES SEVERAL BANKRUPTCIES, THE SYSTEM WILL KEEP EACH BANKRUPTCY

FOR FOURTEEN (14) YEARS FROM THE DATE OF EACH DISCHARGE. ALL ACCOUNTS INCLUDED IN A BANKRUPTCY

REMAIN ON FILE INDICATING “INCLUDED IN BANKRUPTCY” AND WILL PURGE SIX (6) YEARS FROM THE DATE OF LAST

ACTIVITY.

More information about retention periods for Equifax can be found at

http://www.consumer.equifax.ca/dispute-ca/dispute_process/en_ca (click on ‘retend period date

information’ at the bottom)

Sample credit report

How this information is presented will depend on which credit bureau you use, and how you obtain your

report (online, through a lender, or by requesting a free copy by mail). However, the general

information is the same. We have included a sample copy of an Equifax (Appendix A) and TransUnion

(Appendix B) report, annotated with additional information so you can familiarize yourself with what a

credit report looks like.

https://www.transunion.ca/ca/personal/consumersupport/faq/general_en.page#Retention

http://www.consumer.equifax.ca/dispute-ca/dispute_process/en_ca

pg. 7

What Affects Your Credit Score Your credit score is not a part of your credit report. It’s a separate piece of information that is available

to creditors to assess your creditworthiness. While you can get a free copy of your credit report, you

must pay to get your credit score.

Each credit bureau has a different formula for calculating credit scores and they do not disclose what

the formula is. There are, however, five main factors that affect your credit score:

Payment history is the most heavily weighted factor when calculating your credit score. Paying bills on

time will improve your score. Late payments, missed payments, accounts in collection and bankruptcy

will reduce your credit score. These negative items are removed over time and so it is possible to

improve your credit score even after filing bankruptcy or a consumer proposal.

How much of your credit you use is the second biggest factor but is something you can take control of

right away. You can calculate your credit utilization by taking the amount you owe as a percentage of

your total credit limit. The higher this number, the lower your credit score. For example, if your credit

cards are maxed out you have a credit utilization rate of 100%. Reducing your balances owing will have a

positive impact on your credit score. In general, a good credit score means a utilization rate for all loans

of 30% or less.

How long you have had credit will also affect your score. This goes back to proving to the credit bureaus

that you are a reliable borrower. The longer you have used credit wisely, the more experience you have

and this is a positive factor in determining your credit score. If you have filed bankruptcy or a consumer

proposal, you will in effect be starting over and will need to show that you have been able to manage

credit wisely for a while in order to improve your credit score.

The types of credit you carry will also influence your credit score. Credit bureaus look for a healthy mix

of accounts between revolving credit (like credit cards and lines of credit) and term loans (like car loans).

You can begin to rebuild your credit with something like a secured credit card. However, you will need

to add other types of longer term loans to achieve a very good credit score. In addition, having too many

of one type of account can also be bad. If you have a car loan and 10 credit cards, this indicates to the

credit bureaus that you may be mismanaging your credit, which can drive down your credit score.

The number of credit inquiries will also impact your credit score. When lenders ask for a copy of your

credit report, it is called an inquiry. Applying for a loan is considered normal, but if you apply for several

new loans or re-apply multiple times after being turned down for a loan it provides the credit bureau

with a signal that you are a bad credit risk. Applying for loans, having an employer, utility company or

landlord ask for your credit report are considered ‘hard’ hits or enquiries that will impact your credit

score. Requesting your own credit report, or lenders seeking a copy to update their records, are

considered ‘soft’ hits and do not impact your credit score.

Other factors that can have a negative impact on your credit score:

Moving recently and / or frequently. The longer you live at a residence the better your credit

score. If you are moving temporarily (say for school or work), consider using a family member’s

address as a permanent address.

pg. 8

Changing jobs or employers often. As we’ve discussed, your credit rating is based on the

perception that you have the ability to repay a loan. A long employment history has a higher

correlation with credit repayment and thus will increase your credit score. Frequent job changes

will lower your credit score.

pg. 9

What Credit Score Do I Need? Both TransUnion and Equifax use a credit scoring system which gives you a number between 300 and

900. How both report these numbers differs slightly, however the higher your score the more likely you

will be to qualify for credit at a good rate.

Equifax TransUnion

300-560 = Poor 300-599 = Very Poor

560-659 = Fair 600-699 = Poor

660-724 = Good 700-749 = Fair

729-759 = Very Good 750-800 = Good

760-900 = Excellent 801-900 = Very Good

It is not, however, necessary to chase the highest score. Perhaps all you want is an unsecured credit card

for daily use (which you will now pay off every month). If this is the case, you will need to achieve a

score above 560 (600 for TransUnion). Achieving this objective can happen very quickly, without needing

to work hard to build a better credit score.

If, however, you plan to purchase a car or apply for a mortgage then you will need to build a better

credit score. This will take time but can be achieved through the strategies we discuss in the next

section.

pg. 10

Strategies for Rebuilding Credit Good or bad credit is not just a number, it’s the perception that you are a reliable borrower. If you have

a low score today, it’s entirely possible to change the perception of your credit worthiness and establish

a good credit rating with a few basic steps. It will take time but improving your credit score, even after a

consumer proposal or bankruptcy, is possible.

The steps we discuss for rebuilding your credit assume that you have already eliminated unnecessary

debt. One of the determining factors in credit worthiness is not carrying too much debt. If you have not

done so already, begin by reducing revolving credit balances and high cost installment loans. If you

cannot do this on your own in a reasonable period of time (say three to five years) then consider talking

to a Licensed Insolvency Trustee about options to eliminate your debt quicker. Once your debt is gone,

you can begin rebuilding your new credit profile.

Step 1: Get a copy of your credit report.

We recommend getting a free copy of your credit report from both Equifax and TransUnion. Not all

lenders report to both credit bureaus so it’s important to review each agency’s records about your

credit profile.

Getting a free credit report from Equifax:

COMPLETE THE EQUIFAX CREDIT REQUEST FORM AVAILABLE ONLINE FROM EQUIFAX (found here).

MAIL OR FAX YOUR COMPLETED FORM, WITH PHOTOCOPIES OF THE REQUIRED IDENTIFICATION TO:

NATIONAL CONSUMER RELATIONS

P.O. BOX 190, STATION JEAN-TALON

MONTREAL, QUEBEC

FAX: 514-355-8502

Getting a free credit report from TransUnion

COMPLETE THE TRANSUNION CREDIT REQUEST FORM (found here).

MAIL YOUR COMPLETED FORM, WITH PHOTOCOPIES OF THE REQUIRED IDENTIFICATION TO:

CONSUMER RELATIONS CENTRE

PO BOX 338 LCD1

HAMILTON, ONTARIO L8L 7W2

YOU CAN ALSO REQUEST A CREDIT REPORT BY PHONE 1(800)663-9980

Both credit bureaus will want to verify that you are who you say you are. They will require you to send

copies of 2 pieces of ID (front and back) with your application. If you have moved recently a copy of a

recent bill (utility, phone or lease agreement for example) will provide evidence of your correct address.

Step 2: Review you reports for errors and omissions

Negative information on your credit report will lower your credit score and can result in you being

turned down for credit. Errors can include incorrect information about delinquent payments, credit that

http://www.consumer.equifax.ca/ecm/canada/EFXCreditReportRequestForm.pdf

https://www.transunion.ca/resources/transunion-ca/doc/personal/Credit%20Investigation%20Request%20Form_en.pdf

pg. 11

you did not apply for as a result of identity theft, and incorrect personal information. Review both your

credit reports looking for any of the following:

Incorrect mailing address;

Wrong social insurance number;

Credit you did not apply for and other signs of identity theft;

Errors about your account and payment details including inaccurate notices of late payments,

incorrect balances and limits;

Unauthorized credit inquiries;

Correct dates involving any public records including the date of bankruptcy, consumer proposal

or debt management plan (and removal after the appropriate time period).

You can dispute any mistakes or omissions you find on your credit report by contacting the appropriate

credit bureau.

EQUIFAX DISPUTE RESOLUTION PAGE (found here)

TRANSUNION DISPUTE RESOLUTION PAGE (found here)

Correcting information takes time. Diligence and persistence is important. You will also need evidence of

any change you request.

We recommend getting a free copy of your credit report and completing a review for mistakes on your

credit report annually.

Bonus Tip: You are entitled to receive one free copy of your credit report (not including your credit

score) each year. If you want to review your credit report more frequently, you could request your

Equifax credit report now, and then your TransUnion report in six months, and continue alternating

every six months with each credit bureau.

Step 3: Begin to establish a new & better credit history

Damaged credit makes it harder, but not impossible to get new loans and credit cards. While it will take

time to establish the kind of credit score that will qualify you for a good mortgage rate, you can begin

the process right away.

Consider a secured credit card. Home Trust Secured Visa Card are available even to people who have

filed bankruptcy because payment is guaranteed by money you leave on deposit with the lending

institution. Using the card on a regular basis combined with making payments in full, and on time, will

go a long way to re-establishing a positive pattern of credit management. Paying on times means you

will have a positive payment history while paying your balance in full each month will keep your credit

utilization rate low.

Affirm Financial offers an unsecured credit card that is available even during your bankruptcy or

consumer proposal. If you don’t need a credit card, don’t apply, but if you do, or if you want to begin to

rebuild your credit, this card is an option to consider. There is a monthly fee, and some conditions

apply.

https://help-en.equifax.ca/app/answers/detail/a_id/297/~/correcting-errors-on-your-equifax-canada-credit-file

https://www.transunion.ca/ca/personal/creditdisputes/mail_en.page

http://www.moneyproblems.ca/home-trust-secured-visa-card-application-no-fee/

https://www.affirmfinancial.ca/ARPP/HoyesMichalos&AssociatesInc/

pg. 12

Apply for a regular credit card. After a period of time (usually six months to a year) consider applying for

an unsecured credit card. Apply for only one card, not several, and use this card wisely. Set your credit

limit as low as is reasonable given your needs and ability to repay each month.

Apply for a small term loan. Once you have established a pattern of repayment with your credit card,

consider applying for a small term loan through a bank, credit union or other reputable financial

institution. Make sure that you can afford the payments on this loan. If you take on additional debt that

you cannot repay it will have the opposite effect on your credit score than what you wish to achieve.

Generally, you can qualify for a small term loan within six months to a year of using a secured credit card

wisely. An RRSP loan is a good option as you can use your tax refund to begin to pay off that loan.

Confirm with your lender that this new loan will be reported to the credit bureaus.

Ask for someone to co-sign your credit application. If you are not yet able to qualify for credit on your

own, consider asking a friend or family member with good credit to co-sign for you. Be aware however

that if you do not repay this loan you will not only ruin your chances to re-establish your credit score but

you could negatively affect your co-signer’s credit. At a minimum, if you don’t pay back the loan, they

will be required to do so.

Consider changing cell phone companies. Not all cell-phone providers report accounts and payments to

the credit bureaus. While you should not change accounts if it doesn’t make sense financially, if you can

switch to a lower cost provider, also ask if that provider reports to the credit bureaus.

Set aside money for a down payment. While savings do not directly impact your credit score, having

lower balances relative to your limit and your income does. If you are able to put down a larger down

payment towards the purchase of a new vehicle, you will increase your chances of qualifying for a car

loan at a reasonable interest rate.

Step 4: Keep your new accounts in good standing

You can repair your credit by obtaining new credit and showing that you can use that new credit wisely.

Some tips that will help you repair your credit rating faster:

Always pay bills on time.

Consider setting up automated payments to ensure that you don’t miss any payments.

Pay more than the minimum payment in order to keep your utilization rates down. We

recommend paying credit card balances in full every month. This ensures you do not borrow

more than you can safely repay.

If you are denied credit, wait a while before re-applying to avoid the negative impact of multiple

credit applications.

pg. 13

Should I Use a Credit Repair Company? There are many companies that will offer to help you improve your credit score for a fee or will have

some type of credit or saving product they say is designed to help you rebuild your credit. We caution

against many of these programs as they are often not what they appear.

The Toronto Star recently wrote an article about how these credit fix programs often result in individuals

taking on high-interest debt. We also reviewed a similar credit repair ‘savings program which we found

to be very costly considering the potential upside.

We recommend carefully reading any fine print and looking at the numbers before entering into any

such program. You can generally achieve the same results on your own, without the added cost and risk,

if you follow the four steps to rebuilding your credit we have outlined above.

As you can see, it is possible to rebuild your credit even after having filed a bankruptcy or consumer

proposal. Upon completion of your proceeding your debt has been eliminated and you have your fresh

financial start. You have a clean page on which you can build a better credit history without the risk of

further late payments and debt defaults if you borrow and use credit wisely.

Hoyes, Michalos & Associates Inc.

Licensed Insolvency Trustees

1-866-747-0660

hoyes.com

https://www.thestar.com/news/canada/2016/03/09/calgary-companies-pledge-credit-fix-but-deliver-debt.html

http://www.hoyes.com/blog/credit-repair-loan-or-savings-loans-are-they-worth-it/

APPENDIX A: EQUIFAX SAMPLE CREDIT REPORT

Personal Information

Personal Data Other Names: Name: XXXX X XXXX Also Known as: XXXXXXX XXXXXXX XX

SIN: XXXXXXXXX

Date of Birth: 19XX-XX-XX

Current Address Previous Address

Address: XX XXXXXXXX XXX XXXXXXXXX, XX

Address: XX XXXXXXXX XXX XXXXXXXXX, XX

Date Reported: XXXX-XX XXX-XX Date Reported: XXXX-XX XXX-XX

Current Employment Previous Employment Employer: XXXXXXXXXXXXXXX Employer: XXXXXXXX

Occupation: XXXXXXX Occupation:

Employer: XXXXXXX

Occupation: XXXXXXXXXXXX

Special Services

No Special Services Message

Consumer Statement No Consumer Statement on File

Credit Information

This section contains information on each account that you've opened in the past. It is retained in our database for not more than 6 years from the date of last activity.

An installment loan is a fixed-payment loan in which the monthly payment does not change from month to month. Examples of such loans are a car loan or a student loan. Mortgage information may appear in your credit report, but is not used to calculate your credit score. A revolving loan is a loan in which the balance or amount owed changes from month to month, such as a credit card.

Note: The account numbers have been partially masked for your security.

Hoyes Michalos Editor Note: We have added explanatory commentary in [brackets]

CREDIT CARD CO [GOOD STANDING] Phone Number: (###)###-#### High Credit/Credit Limit: $####.##

Account Number: XXX…### Payment Amount: $#.##

Association to Account: Individual Balance: $###.##

Type of Account: Revolving Past Due: $0.00

Date Opened: XXXX-XX Date of Last Activity: XXXX-XX

Status: Paid as agreed and up to date Date Reported: XXXX-XX

Months Reviewed: XX Payment History: No payment 30 days late

No payment 60 days late


Prior Paying History: Comments: Monthly payments

Amount in h/c column is credit limit

CREDIT CARD CO [ACCOUNT CLOSED]

Phone Number: (###)###-#### High Credit/Credit Limit: $####.##

Account Number: XXX…### Payment Amount: Not Available

Association to Account: Individual Balance: $0.00

Type of Account: Revolving Past Due: $0.00






Prior Paying History:

Comments: Account Closed Account paid

CREDIT CARD CO [IN COLLECTION]


Account Number: XXX…### Payment Amount: $####.##

Association to Account: Individual Balance: $####.##

Type of Account: Revolving Past Due: $####.##


Status: Bad debt, collection account or unable to locate Date Reported: XXXX-XX




Prior Paying History: At least 120 days past due ( due date ) At least 120 days past due ( due date ) At least

120 days past due ( due date )

Comments: Acct assigned to third party for collection Monthly payments

BANK LOAN [OVERDUE]

Phone Number: (###)###-#### High Credit/Credit Limit: $#####.##

Account Number: XXX…### Payment Amount: $###.##

Association to Account: Balance: $####.##

Type of Account: Installment Past Due: Not Available


Status: Two payments past due Date Reported: XXXX-XX

Months Reviewed: XX Payment History: 01 payment 30 days late

01 payment 60 days late


Prior Paying History: One payment past due (due date)

Comments: Monthly payments CREDIT CARD CO [WRITTEN OFF]



Association to Account: Individual Balance: $####.##

Type of Account: Revolving Past Due: $####.##








Comments: Written-off Transferred or sold

CAR LOAN [GOOD STANDING] Phone Number: (###)###-#### High Credit/Credit Limit: $####.##


Association to Account: Individual Balance: $###.##

Type of Account: Installment Past Due: $0.00






Prior Paying History: Comments: Monthly payments

Amount in h/c column is credit limit

LOAN [HISTORY LATE PAYMENTS - JOINT] Phone Number: (###)###-#### High Credit/Credit Limit: $####.##


Association to Account: Joint Balance: $###.##

Type of Account: Installment Past Due: $0.00



Months Reviewed: XX Payment History: 08 payments 30 days late



Prior Paying History: One payment past due (due date) One payment past due (due date) One payment past due (due date)

Comments: Account paid

Auto

FINANCE CO [ACCOUNT INCLUDED IN BANKRUPTCY]



Association to Account: Individual Balance: $0.00

Type of Account: Installment Past Due: Not Available








Comments: Included in bankruptcy Monthly payments

[Creditors may incorrectly report accounts included in a consumer proposal as included in a bankruptcy. These should be corrected through dispute resolution]

Credit History and Banking Information A credit transaction will automatically purge from the system six (6) years from the date of last activity. All banking information (checking or saving account) will automatically purge from the system six (6) years from the date of registration.

No Banking information on file

Public Records and Other Information

[This is where information regarding legal actions is reported] Bankruptcy

A bankruptcy automatically purges six (6) years from the date of discharge in the case of a single bankruptcy. If the consumer declares several bankruptcies, the system will keep each bankruptcy for fourteen (14) years from the date of each discharge. All accounts included in a bankruptcy remain on file indicating "included in bankruptcy" and will purge six (6) years from the date of last activity.

Voluntary Deposit - Orderly Payment Of Debts, Credit Counseling

When voluntary deposit – OPD – credit counseling is paid, it will automatically purge from the system three (3) years from the date paid.

Registered Consumer Proposal

When a registered consumer proposal is paid, it will automatically purge three (3) years from the date paid.

Judgments, Seizure Of Movable/Immovable, Garnishment Of Wages

The above will automatically purge from the system six (6) years from the date filed.

Secured Loans

A secured loan will automatically purge from the system six (6) years from the date filed. (Exception: P.E.I. Public Records: seven (7) to ten (10) years.)

[EXAMPLE - HOW A BANKRUPTCY MAY BE REPORTED] Bankruptcy Date Filed: 20xx-xx Name of Court: OFF SUP BKRPT Case Number and Trustee: ######### HOYES MICHALOS ASSO Assets: $####.## Liabilities: $####.## Type: Individual Filer: Subject Date Discharged: Comments: Disposition unknown [EXAMPLE – HOW A DISCHARGED BANKRUPTCY MAY BE REPORTED] A discharged bankruptcy was filed on xx/xx in OFF SUP BKRPT. Case number and or Trustee: ######## HOYES MICHALOS ASSO. Liabilities: $####. Assets: $####. Item classification: Individual. The information is reported on the subject only. Date settled: xx/xx. [EXAMPLE - HOW A CONSUMER PROPOSAL MAY BE REPORTED] A proposal to creditors was filed on xx/xx in OFF SUP BKRPT. Case number and or Trustee: ######## HOYES MICHALOS ASSO. Liabilities: $####. Assets: $####. Item classification: Individual. The information is reported on the subject only. Date settled: Unknown. Additional comments: Disposition unknown.

Collection Accounts

A collection account under public records will automatically purge from the system six (6) years from the date of last activity.

[EXAMPLE ACCOUNT IN COLLECTION]

PAYDAY LOAN COMPANY Date Assigned 20xx-xx Account Number: ###########

Collection Agency: ABC Collection Co. Reason: Amount: $xxx.xx Balance Amount: $xxx.xx Date of Last Payment: 20xx-xx Date Paid: Date Verified: Comments:

Credit Inquiries to the File

The following inquiries were generated because the listed company requested a copy of your credit report. An Inquiry made by a Creditor will automatically purge three (3) years from the date of the inquiry. The system will keep a minimum of five (5) inquiries. [HARD INQUIRIES WILL APPEAR HERE]

The following "soft" inquiries were also generated. These soft inquiries do not appear when lenders look at your file; they are only displayed to you. All Equifax Personal Sol inquiries are logged internally, however only the most current is retained for each month.

[SOFT INQUIRIES WILL APPEAR HERE]

APPENDIX B: TRANSUNION STYLE SAMPLE CREDIT REPORT

Personal Information:

This section includes your Surname, Given Name(s), Middle Name, notification if your Social Insurance Number is ON FILE and Birth Date. Blank areas indicate that this information was not reported to TransUnion.

Surname Given Name(s) Middle Name Suffix Social Insunince No Birth Date

Your Information XXXXXXXXX XXXXXXX XXXXXX ON FILE Dec ##, ####

Address(es):

This section lists all of the addresses on your file. Your most current Since date address is listed first.

Address City Prov Postal Type Own Since Telephone Associations

15 MAIN STREET CITY ON L1L1L1 Home 519######

25 FIRST STREET CITY ON M1M1M1 Home XXX ##, ####

5 CEDAR AVE CITY ON N1N1N1 Home XXX ##, ####

Employment(s):

This section lists all of the employments on your file with the most recent listed first.

Date Employer's Name, City and Province Occupaton Start Date Finish Date Pay Pay Frequency

Jun ##, #### ACME COMPANY OTHER

Feb ##, #### INTERNATIONAL INC

Dec ##, #### CANADA LTD

Telephone Number(s):

This section lists all of the telephone numbers on your file:

Qualifier Number Extension T1111! Date Home ########## Jun ##, #### Home ########## Feb ##, #### Home ########## Dec ##, #### Home ########## Mar ##, #### Home ########## Oct ##, ####

Banking:

This section lists all of the negative information reported by financial institutions regarding your personal banking.

Bank Account

Type Opened Closed Reported Write Off

Date Write Off Amount Banking Information

BANK ONE

Sep ##, 20##

Sep ##, 20##

Sep ##, 20##

$xxx

Reason: Uncollected overdraft or charge. amount written off in balance field Individual

Account(s):

This section lists all the accounts that have been reported by various institutions with which you have established a credit relationship.

Creditor Name Reported

Date Last Payment

Dale Charge OIT Dute High Credit Past Due Terms Account Type

Opened Date Posted Date First Delinquency

Date Credit Limit Balance Ownership Current Payment Payment History

30 I 60 I 90 I #M Closed Date Balloon Payment

Date Balloon Payment

Amount Charge

OIT

CREDIT CARD BANK A 0 0 0 76 xxx xx, xxxx xxx xx, xxxx xxxx 0 0/M REVOLVING

xxx xx, xxxx xxx xx, xxxx xxxx 0 Individual R 1 - PAID AS AGREED xxx xx, xxxx 0 Comments: Account closed/rating non derogatory. Inactive account CREDIT CARD BANK B 1 1 3 18 xxx xx, xxxx xxx xx, xxxx xxxxxx xxxx 18/M REVOLVING xxx xx, xxxx xxx xx, xxxx xxx xx, xxxx 0 0 Individual R5 - AT LEAST 120 DAYS OVERDUE

Comments: GOVERNMENT STUDENT LOANS 0 0 0 68 xxx xx, xxxx xxx xx, xxxx xxxxx xxxx 250/M INSTALLMENT xxx xx, xxxx xxx xx, xxxx xxxxx xxxx Individual R1 - PAID AS AGREED

0 0 Comments: Student Loan TELUS 3 0 0 22 xxx xx, xxxx xxx xx, xxxx xxxxx 0 0/M 30 DAY OPEN xxx xx, xxxx xxx xx, xxxx 0 xxx Individual O1 • PAID ASAGREED

Comments: KOODO 0 0 28 28 xxx xx, xxxx xxx xx, xxxx xx 0 0/M 30 DAY OPEN xxx xx, xxxx xxx xx, xxxx xxx xx, xxxx 0 0 Individual O9 • BAD DEBT. PLACED FOR COLLECTION

0 0 Comments: Account transferred, Bad debt write-off CAR LOAN CO. 0 0 0 36 xxx xx, xxxx xxx xx, xxxx xxxxx 0 0/M I NSTALLMENT xxx xx, xxxx xxx xx, xxxx 0 0 Jnt Cont Resp 11 - PAID AS AGREED

Comments: Paid OLD CREDIT CARD C 0 0 0 18 xxx xx, xxxx xxx xx, xxxx 0 0/M REVOLVING xxx xx, xxxx xxxx 0 Individual R1 - PAID AS AGREED

Comments: Closed at consumer’s request CREDIT CARD D 3 2 43 57 xxx xx, xxxx xxx xx, xxxx xxx xxx 10/M REVOLVING xxx xx, xxxx xxx xx, xxxx xxx xx, xxxx xxx xxx Individual R9 - RAD DEBT, PLACED FOR COLLECTION

0 xxx Comment: Bad debt write-off. Account cancelled by credit grantor with derogatory rating CREDIT CARD D 3 2 43 57 xxx xx, xxxx xxx xx, xxxx xxx xxx 10/M REVOLVING xxx xx, xxxx xxx xx, xxxx xxx xx, xxxx xxx xxx Individual R9 - RAD DEBT, PLACED FOR COLLECTION

0 xxx Comment: Account included in bankruptcy

Registered (s):

This section lists any liens or collateral assignments registered to your name.

Registered (s):

This section lists bankruptcy and proposals in bankruptcy maintained on your file in compliance with provincial regulations.

Collection (s):

This section lists any collections that have been recorded on your file.

Credit Related Inquiries:

When you apply for credit, companies may request your consent to access your credit report to assist in their decision. Each time they request your report for credit-related purposes, an inquiry is listed on your file. These inquiries will be disclosed to other companies viewing your credit file and may impact your credit score.

Date Authorized User's Name Telephone

xxx xx, 20xx Collection agency ########## xxx xx, 20xx Bank ########## xxx xx, 20xx Credit card company ########## xxx xx, 20xx Financing company ########## xxx xx, 20xx Car loan company ########## xxx xx, 20xx Credit card company ##########

Non-Credit Related Inquiries:

When you apply for employment, tenancy, insurance, etc., companies may request your consent to access your credit report to assist in their decision. Companies may request your consent to access all or part of your credit information for identity verification purposes before completing a transaction or entering into a relationship with you. In addition, some organizations are authorized by law to receive your credit information. These inquiries. as well as your own requests to access your personal credit file, will not be disclosed to other companies viewing your credit file and will not impact your credit score.

Account ID Reported By Assigned Reported

First Date of Delinquency Status Original Balance Collection Information

####### Agency: Collection Company, Creditor: xxxxxxxxx

xxx xx, 20xx

xxx xx, 20xx

xxx xx, 20xx

xx

xx Paid


xxx xx, 20xx

xxx xx, 20xx xxx xx, 20xx

xxxx

xxxx


xxx xx, 20xx

xxx xx, 20xx xxx xx, 20xx

xxxx

xxxx Account included in bankruptcy

Reported Secured Party Chattel Number Filed Mature Amount Security Information

xxx xx, 20xx ABC Bank xxxxxx xxx xx, 20xx #######

CONSUMER GOODS EQUIPMENT OTHER ITEMS

Balance not available from credit grantor Individual

Date Trustee Information Filing Information

Reported on Jan xx, 20xx Filed on Jan xx, 20xx Discharged on Last updated on xxx xx, 20xx

Trustee Name SCHAEFER, SCOTT KENNETH Trustee Phone5197470660 Trustee Company HOYES, MICHALOS AND ASSOCIATES INC. Company Phone 5197470660

Assets $##### Liabilities $##### Estate Number ######### Consumer bankrupt

Date Authoriied User's Name Telephone xxx xx, 20xx BANK ########## xxx xx, 20xx BANK ########## xxx xx, 20xx HUMAN RESOURCES ########## xxx xx, 20xx CMHC ##########

Account Review Inquiries:

After establishing a relationship with you, companies may periodically review your credit file for account renewals, limit increases and pre-approved offerings. Since these inquiries are for "account review" purposes only, they are not disclosed to other companies viewing your credit file and have no impact on your credit score.

Dole Authorized User's Name Telephone

xxx xx, 20xx BANK ########## xxx xx, 20xx CREDIT CARD COMPANY ########## xxx xx, 20xx CREDIT CARD COMPANY ########## xxx xx, 20xx FINANCING COMPANY ########## xxx xx, 20xx BANK ########## xxx xx, 20xx BANK ########## xxx xx, 20xx COLLECTION AGENCY ########## xxx xx, 20xx BANK ########## xxx xx, 20xx FINANCING COMPANY ########## xxx xx, 20xx BANK ########## xxx xx, 20xx BANK ########## xxx xx, 20xx CREDIT CARD COMPANY ########## xxx xx, 20xx BANK ##########

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