Richard Romeus- Mortgage Agent
201-85 Scarsdale Rd M3B 2R2 Toronto, ON, Canada

Paying off debt in full versus settlement; all the pros and cons If possible, it is recommended to consider paying off debt in full amount. Even though settling an account is seen a bit better compared to not paying at all, settled status is yet pondered negative. Debt settlement implies that you have agreed on with the loan provider, and they are ready to approve less than the whole amount owed. ... The lender, therefore, will report such an account as settled. So anytime you avoid paying the debt in full amount, your credit score will be negatively affected. The settled status will be there for up to 7 years from the real delinquency date of the debt. Despite the wrath of the COVID-19 pandemic, it is critical to consider protecting your credit scores. If you ponder managing it well, then your future investment options will be easier to handle.

How to avoid delinquencies throughout the pandemic? As the world is trying hard to curb unprecedented COVID-19 pandemic, some individuals are considering it an opportunity to exploit others. During this time, you may receive a message that your friend or relative is stuck in another country, and the only option to get him/her home is sending wire cash to a random account. Other fraudulent companies have been created, and they’ll tell you they already have a cure to the virus..., and they're only waiting for FDA approval. They’ll claim that if you invest in them, they’ll send you some stock to make you rich. With that in mind, you’ve already seen how fraudulent our society seems to be. Therefore, to avoid these delinquencies, you must; Identify vulnerability Engage in employee and customer education Stay informed and calm Partner up

Would deferral payments impact your credit? This is one of the nagging questions for Canadians. Most people don’t really know what can happen to their credit if they ponder deferring payments on their credit cards, bills, mortgage, and auto loans amid the coronavirus pandemic. Actually, all the six big banks in Canada and many other utility providers and lenders have introduced a program to enable clients to defer payments for several months just in case they are experienci...ng financial challenges due to the Covid-19 pandemic. So the lenders have guaranteed the clients not to report late payments or report deferrals as missed payments, which can negatively impact the client’s ratings.

Post-Pandemic Credit Negatively Impact Even in the midst of Covid-19 pandemic, we still need to maintain good credit scores as they play an integral role in the future of financial opportunities. To achieve this, you need to follow some simple basic steps. Get a credit report copy, make the payment if you can, get in touch with your lender if you can’t make payments, make it a routine to check your credit report, dispute, and report if the information is inaccurate.