Credit Education
Where are you right now?
Pick the one that sounds most like you. Tap a card to jump to the questions below.
Thinking about a proposal? Learn what it is, and who gives the advice.
New to credit, or rebuilding after a rough patch? Start with how scores and reports work.
Frequently Asked Questions
Credit basics
Payment history matters most. Then how much you owe compared to your limits, how long you've had credit, new applications, and the mix of credit types. Each bureau and lender weighs these differently, so your score can differ between them.
Equifax Canada and TransUnion Canada each let you request your report at no cost. Check both, because the information can differ between them.
They're Canada's two national credit bureaus. Lenders use one or both, and each may hold different information about you. Check each one so you know what a lender might see.
Contact the bureau in writing or online and explain what's wrong, with copies (not originals) of supporting documents. Keep a record of everything you send. The bureau investigates and corrects information it can't verify.
Negative payment information generally stays on your credit report for up to six years.
No. When you check your own report or score, it's a soft inquiry and doesn't affect your score.
Getting approved with damaged credit
Sometimes. Lenders and leasing companies weigh more than a score: income, job stability, other debts, down payment, and the vehicle. Nothing is guaranteed, and every application is subject to approval.
Pre-approval is an early, conditional review of what you may qualify for. It's not final approval; the full application is still reviewed. Legacy's form won't trigger a credit check, and we ask before running one.
The dealer makes the credit decision and provides the financing or lease itself, not an outside bank. Legacy reviews applications and provides leases in-house, and reports every payment, including missed ones, to Equifax. Not every dealer reports, so ask before you sign.
It can. On-time payments on a loan or lease that's reported to a credit bureau add positive history over time. Missed payments do the opposite.
Debt and insolvency
The Bankruptcy and Insolvency Act (BIA) is the federal law that governs consumer proposals and bankruptcy in Canada. Licensed Insolvency Trustees operate under it. The Office of the Superintendent of Bankruptcy oversees the system.
A formal arrangement under the Bankruptcy and Insolvency Act (BIA) to repay part of your unsecured debt over time. It's filed through a Licensed Insolvency Trustee, who advises you on whether it fits your situation. If you're considering one, we can connect you with a Licensed Insolvency Trustee.
A legal process under the BIA, administered by a Licensed Insolvency Trustee, that can discharge many debts. It is not right for everyone, and the trustee advises on whether it applies to you. On your Equifax credit report, a bankruptcy stays for 6 years after the discharge date, or 7 years after the filing date if there is no discharge.
Sometimes. Your Licensed Insolvency Trustee looks at the vehicle's value compared with what you owe on it, which is called equity. Provincial law sets an exemption for vehicle equity. In Ontario, the exemption protects up to $8,578 of equity in one vehicle. If the equity is within the exemption, you can usually keep the vehicle. If it's above that, the trustee will explain what you'd need to pay into the process to keep it. Where you owe more than the vehicle is worth (negative equity), surrendering the vehicle is a common outcome, and your trustee will discuss it with you. Ask your trustee before you change anything about your vehicle loan or lease.
No. But if you're considering a consumer proposal or bankruptcy, a Licensed Insolvency Trustee is the right person to advise you before you make big financial decisions.
It combines several debts into one payment. Whether it helps depends on the interest rate, the term, the fees, and whether your spending changes. Compare the total cost of each option before you choose. A Licensed Insolvency Trustee can explain options like a consumer proposal.
In Ontario, collection agencies must be registered and follow the Collection and Debt Settlement Services Act (CDSSA). A registered agency must send you a written notice about the debt, and must wait 6 days after that notice before trying to contact you to collect. They can't call on Sundays (except 1 to 5 p.m.), statutory holidays, or between 9 p.m. and 7 a.m. If you think an agency broke the rules, you can file a complaint with Consumer Protection Ontario.
Rebuilding your credit
There's no set timeline. It depends on what's on your report and your habits from here. Each on-time payment that's reported adds positive history.
On-time payments are the biggest factor. Also: keep balances low compared to limits, avoid opening several new accounts at once, and check your report for errors each year.
Some people move to lower-cost financing as their history improves. When it's the better option for you, Legacy can also arrange financing through a bank partner, subject to approval. Nothing is guaranteed.
About Legacy
For help with budgeting or debt, you can talk to an accredited non-profit credit counsellor or a financial advisor. Advice on a consumer proposal or bankruptcy comes from a Licensed Insolvency Trustee, and we can connect you with one. Legacy doesn't give insolvency advice. For questions about financing a vehicle, see our Get Pre-Approved page.
We deliver vehicles anywhere in Ontario from our Walkerton location.
Menu
Contact Us
Tel. (519) 507-2277
contact@legacyautocredit.ca
131 Kincardine Road Walkerton, ON
