Credit Canada FAQs

We help people transform the way they use credit, and we do this through a number of different ways. We provide free credit and debt counselling services, credit building advice, and free Debt Assessments. We also provide personal debt management, debt consolidation and resolutions, as well as preventative counselling, educational seminars, and free tips and tools in the areas of budgeting, money management, and financial goal-setting.

Credit counselling is a way to get support with managing your money, paying off your debt and improving your credit rating. A Credit Counsellor from a non-profit credit counselling agency will provide you with free unbiased advice on the best solutions and strategies for your situation.

All our counselling services are free of charge. The only time we charge any fee is for our Debt Consolidation Program (DCP). There is no cost to speak to any of our certified Credit Counsellors or to access our education materials, services, and tools.

Speaking to a Credit Counsellor has zero impact on your credit rating. A Credit Counsellor will let you know exactly how your credit is impacted by every solution.

No, we are not a credit repair company and we strongly advise anyone seeking credit help to be wary of any company claiming to be a credit repair company, as there are no quick fixes to credit repair. Credit Canada is a non-profit credit counselling agency that provides free counselling via our certified Credit Counsellors, who can answer questions about debt management, debt consolidation, credit building, and budgeting.

For-profit credit counselling services will typically charge you a fee for their counselling services. They may also charge you a fee for negotiating with your creditors or enlisting other professionals in your situation. Non-profit credit counselling provides all counselling and education services free of charge; any potential fees for a solution are regulated and worked into your monthly payments. There are no upfront fees involved in non-profit credit counselling.

As a non-profit, our services are funded through a number of different channels. This includes grants, special projects, targeted sponsorships for specific programs, and fair share contributions from financial institutions in connection with our Debt Consolidation Program (DCP).

Call 1.800.267.2272, or you can book online directly with a Credit Counsellor by clicking here and filling out the form on the page. All our counselling services are free of charge. 

A Credit Counsellor will look for financial solutions in any situation. There is no minimum or maximum amount of debt required. All types of debt are considered when determining solutions and helping you manage your money.

Our Credit Counsellors are experienced in helping small business owners get a handle on debt and money management. We know that business and personal expenses can intermingle and we can help find solutions considering both. We can help with personal debts and certain debts from failed small businesses. 

You will need to contact Canada Revenue Agency (CRA) to determine what government benefits you would be eligible for.

No, Credit Canada does not offer loans as we are not a financial institution. However, we do offer an alternative option, our Debt Consolidation Program (DCP), where we are able to negotiate with your current creditors to restructure your debt into a monthly repayment plan. Learn more about the program here.

No, we do not process bankruptcies. In order to file for bankruptcy you will have to work with a Licensed Insolvency Trustee (LIT). Our Credit Counsellors can provide information on insolvency options, like a consumer proposal and bankruptcy, and inform you about their pros and cons. However, if you wish to file a consumer proposal or bankruptcy, you will have to work with an LIT.

No, any information you share with your Credit Counsellor is strictly confidential, and we do not share your information with the government. We do not provide collection agencies with any information they don’t already have access to. We may get in touch with collection agencies who were already collecting outstanding debt to notify them that you are working with our agency and they are to cease all communication with you.  

You can access your credit report from Canada’s two credit bureaus: Equifax and TransUnion. With Equifax, you can access your credit report for free on a monthly basis.

Many banks allow users to access their credit score via online banking, and in most cases, the credit score they provide comes directly from Equifax or TransUnion. You can also access your credit score through CreditKarma and Borrowell, although the credit score offered by these sites may not be the exact same credit score lenders view. 

If you are comfortable with online banking, the easiest way for you to access your credit score is through your bank’s free credit score service.

During a credit building counselling session, we can pull your credit report and score. During the session, we will go over the report and let you know what can be done to improve your credit score and overall credit rating.

Improving your credit score is a balance of two things: Resolving items that are owed and having current positive activity reported. Depending on your situation, this can take some time. For a personalized plan to improve your credit score, we should schedule you for a credit building counselling session. 

Credit building is the process of building a positive credit history on your credit report. If you are interested in booking a free credit building counselling session with one of our certified Credit Counsellors, please click here (include meetings link). 

If you file a consumer proposal, your credit rating will be an R7 for three years following discharge. If you sign up for a DCP, your credit rating will be an R7 for two years following the completion of your Program. 

Speaking to a Credit Counsellor has zero impact on your credit rating. A Credit Counsellor will let you know exactly how your credit is impacted by every solution.

Credit counselling can improve your credit rating by providing a full scope of your financial situation, including debts. A certified Credit Counsellor can review your credit report, budget and outstanding debts and provide tips and solutions that can improve your credit rating over time.

There are several things that you can do to improve your credit score. Some tips for improving your credit score include:

• Paying all bills on time whenever possible;
• Getting (and staying) current on missed payments;
• Don’t write cheques that will bounce;
• Pay off debt instead of shifting it to new accounts;
• Avoid applying for too much new credit too quickly; and
• Apply for and use a secured credit card.

The first step to a Debt Consolidation Program is speaking with one of our certified Credit Counsellors and having a full financial assessment (which includes a review of your income, monthly expenses, debts, and assets). You can call 1.800.267.2272 to book an appointment or you can book online directly with a Counsellor by clicking here. All of our counselling services are free of charge. 

Your Credit Counsellor will determine whether or not our Debt Consolidation Program is a viable option for you based on your income, expenses, how much you owe, and who you owe it to.

The best way to know who you owe money to is by accessing your credit report from Canada’s two credit bureaus: Equifax and TransUnion. Your credit report will contain credit account information as reported to the credit bureau by your lenders, including current balances on the accounts and payment history. 

Your credit report will also contain information on accounts in collections. This includes accounts that are past-due and have been turned over to a collection agency (e.g., credit accounts and outstanding bills from retail stores, cable companies, mobile phone providers, and some doctor/specialists).

You can include unsecured debt (e.g., credit card debt, payday loans, cell phone bills, utility bills, unsecured lines of credit, etc.) in a DCP. Although all forms of debt can be addressed, we cannot include secured loans, tax debt, child support payments, or student loans that haven’t gone to collections.

There are no charges for your appointments with your Credit Counsellor. If you qualify for  a DCP and decide to sign up, there is typically a $50 set up fee, and your monthly payment is determined by your monthly expenses and any outstanding unsecured debts. This can be discussed further with your Counsellor.

Yes, you do have to stop using your credit cards. However, in most cases, clients on a DCP have maxed out their credit anyways. If you need credit for your small business or to book a hotel or rent a car, your Counsellor can help you access a secured credit card, which is a credit card you load with your own money. Secured credit cards are also a great way to rebuild your credit.

Enrolling in a DCP will not impact your existing mortgage nor your ability to do a straight renewal of your mortgage. However, because your credit score may be lowered by going onto a DCP, it may affect your ability to apply for a new mortgage.

No, you will not lose your car if you go on a DCP.

A DCP is a voluntary program to repay the full amount of your debt load whereas a consumer proposal is a legal process administered by a Licensed Insolvency Trustee (LIT) to repay a percentage of your debt load. Each option has its pros and cons.

Credit Canada accepts payments via bill payment, which can be done through online banking, telephone banking, or by teller at your local bank. The payee for the bill payment is Credit Canada Debt Solutions Inc., and the account number is your 7-digit Client ID. Detailed instructions can also be found in your DCP Agreement.

DCP payments are typically due on the 15th of every month. You can send your payment to Credit Canada anytime, from the 1st of the month up to and including the 15th.

Payments are typically disbursed to creditors on the 20th of each month. If the 20th falls on a weekend or a Monday, funds would then be disbursed on the Tuesday of that week.

If there is an additional debt that needs to be added to your DCP, you will need to schedule a review appointment with a Credit Counsellor in order to do so. Adding an additional debt will increase your monthly payment, as there will be another creditor receiving a portion of your monthly payment.

Every creditor has their own timeframe for responding to a DCP proposal. Some will respond within a few days. However, others can take up to 6-8 weeks to respond.

Collection calls and letters may continue until creditors have accepted your DCP proposal. If you receive a collection call, you can inform the creditor that you have enrolled in our DCP and request that they no longer contact you.

Most creditors are receptive to this direction. However, some may continue to call you until they have formally accepted our offer. If calls continue, you can call our mainline (1.800.267.2272) and speak with our administrative team for support.