Ezee Credit's goal is to help you establish, or re-establish, good credit...so we can offer you the best rates and terms.

ESTABLISHING GOOD CREDIT

We know that our customer's first goal is to drive a great vehicle on affordable terms. But right behind that is the goal to either establish for the first time, or to re-establish, an excellent credit rating. A good credit rating can lead to substantially improved interest rates and financing terms on all of your financing needs including automotive loans or leases. An improved credit rating can literally save you thousands of dollars and is a goal very much worth pursuing.

Bad credit re-establishment won't happen by accident. It takes a good plan and the determination to execute that plan to succeed in re-establishing your credit.

AUTOMOTIVE FINANCING A GOOD START

Obtaining automotive financing is one of the best ways to start to re-establish your credit. A vehicle loan or lease is usually a more significant obligation than a small limit on a credit card, although credit cards and small loans can also be helpful.

When financing a vehicle, most established lenders will file a Personal Property Security Act (PPSA) financing statement on the vehicle indicating that they have a security interest in it. This PPSA financing statement will then be reported as a secured debt obligation on your credit bureau. This notifies other potential lenders that you have a loan or lease on a vehicle and the amount involved. When you have satisfied the loan or lease, the lender will discharge its security interest in the vehicle and the debt obligation will then be shown as discharged on your credit bureau.

Other lenders will see that you have paid off a secured loan or lease and your credit worthiness will improve. This credit improvement can be enhanced when combined with a letter from the lender outlining your payment history and indicating that it has been paid off completely.

PERIODIC CREDIT BUREAU REPORTING

Some prospective lenders prefer to see the payment timeliness and other details relating to the loan or lease reported on your credit bureau. Periodic credit bureau reporting generally provides the following information: (i) the date the loan or lease was opened; (ii) the amount borrowed (usually total payments); (iii) the amount remaining to be paid; (iv) the date the last payment was made; (v) the payment amount and frequency (i.e. weekly, bi-weekly, monthly etc.); and (vi) the current status of the loan. For example, a loan or lease which is current is reported as I1 with the I standing for installment as opposed to R for revolving as used on other obligations such as credit cards. Two payments in arrears will be I2 and so forth with a maximum of I5 meaning 5 or more payments in arrears.

Paying an account that is in arrears will improve your current classification once again. Past slow payments, however, including when they occurred, continue to be displayed. A vehicle which is repossessed for non-payment will be reported as an I8 and will be shown as a voluntary (customer dropped off the vehicle) or involuntary (lender had to re-take possession). The bureau can also show when a repossessed vehicle was redeemed by a customer.

Reporting on the credit bureau does not really provide any more information than a good payment letter but it appears to be more accepted by other lenders, perhaps as being more credible. The obvious goal is to keep the loan or lease rating a I1 and if you fall behind, to get it caught up as quickly as possible.

OTHER CREDIT ENHANCEMENT FACTORS

As outlined in Assessing Your Credit, there are more factors that determine your credit status than just one loan. It is important to try and enhance each of the factors that influence lenders so that your whole credit picture starts to look consistent and more inviting to lenders.

So, in addition to paying on time on the bad credit loan or lease, the customer also has to stop defaulting on other credit obligations, making slow payments or becoming over extended. The credit rating will improve more again if old delinquent obligations are paid off or settled. Plus properly managing additional credit, such as credit cards or small loan amounts, that don't exceed their maximum limits, and that are paid on time each month, begin to improve your credit score.

If your score is still too low to get you bought by score alone, your job and residence stability together with your debt service ratio are also factors that lenders will still look at closely.

Overall, one good auto financing experience may not be enough, by itself, to satisfy lenders about your credit re-establishment in the context of your other circumstances. But in most cases, it can significantly help get you back on track to re-establishing your credit.

THE EZEE CREDIT POSITIVE INFLUENCE

Ezee Credit reports a security statement under the PPSA which is reported on the credit bureau for each person obligated on our in-house lease. A secured loan is also reported in most cases by the lenders selected by Ezee Credit for our customers. When the loan or lease is paid off, it is then shown as discharged. Ezee Credit has also provided customers with payment history letters upon request to assist customers getting new credit financing as well as directly advising lenders when applying for new automotive credit for our many repeat customers.

In addition, due to the preference of some lenders to see periodic reporting on the Credit Bureau, Ezee Credit now reports monthly to Equifax, the most recognized credit bureau in Canada. Ezee Credit's selected lenders also report to one or more credit bureaus. We also work with our customer's, especially with our in-house financing, to help you keep on track. Our goal is the same as yours: have you pay off your obligation successfully on time so we can hopefully earn your repeat business by offering you the improved better terms you have earned by re-establishing your credit.

With our approach, we have helped many people improve their credit rating to the point they are now driving new vehicles today at the very best rates available. We have had the most success helping good people with past problems that genuinely wanted to re-establish their credit in all aspects.