What are Credit Services?

Credit services refer to the business of providing loans, various types of credit and relevant information regarding credit for private consumers and corporate institutions. Credit services can include credit reporting, portfolio management, consumer assistance and consumer credit protection.
Consumers with serious problems in debts need help in credit management, counselling and debt consolidation. This is indeed a big consolation since being overloaded with debt means an unfavourable effect on your credit rating and score. Putting your finances in order is relatively a difficult and complicated task. It is therefore imperative for consumers to know how to cope with these problems.

How do you manage your Debt?

Service Canada suggests that it is essential for Canadians to understand everything about credit reports and scores. The Office of Consumer Affairs provides an online tool that will help consumers to deal with debt issues and concerns. It is equally important to resolve mortgage payment difficulties promptly. Canada Mortgage and Housing Corporation offer adequate information with respect to the education of homeowners so that they can establish communications with their lenders and discuss ways of addressing financial difficulties in the repayment of mortgage loans.
Furthermore, the concept of the GST/HST Credit Program issues payments to Canadians with low and modest incomes to help offset all or part of the GST/HST they pay on the purchase of goods and services. The Canada Revenue Agency Web site provides information on application procedures, eligibility, payment of the GST/HST credit and procedures to follow in case of overpayment.

What is the Relevance of Credit Reporting?

Credit reporting is one of the most important responsibilities of companies which provide credit services. These companies make available consumers' credit information to banking institutions and make information such as borrowing and bill paying behaviour of the individual. This information provided by these companies is very helpful in monitoring the credit profile of the individual such as capacity to pay back mortgages. This consumer credit information also helps in determining the interest rate on loans taken by that individual. When a consumer's credit history mentions of defaults or if the consumer is having a bad credit history, the banks also tend to increase risk premiums levied on that individual because there are more chances of going bankrupt or inability to pay the loan. This information is given to the bank by credit service firms when the individual applies for a loan or credit card.
There are 127 credit reporting services in Canada at present, according to

What are the Functions of Credit Service Companies?

Credit services companies require active contribution by all creditors and debt collection agencies in the process of gathering consumer credit information of consumers. Debt collection agencies and creditors contribute to the process of elaborating details regarding a person's credit history.
The functions of credit services agencies are not limited to providing assistance to banks and borrowers. These service companies provide secured online access to their credit information and develop protected passwords so that no external agency can intrude into the financial privacy of their clients. These service providers hope to develop more secured passwords amid threats of hacking.
Credit services companies also perform portfolio management of various banks in relation to performance, debtors and respective credit histories. Portfolios managed by the credit services agencies give valuable information about the bank's wealth accumulation abilities and other crucial data. Credit services companies have enhanced the performance rate of banks and financial transactions.
Consumer assistance is also an important service that they provide to the financial sector. The consumer can enquire about the details of his or her account or credit card statement. The consumer can also learn about other facilities which the creditor bank is providing.

Recognizing the Importance of Credit Services

After having gone though the explanations regarding credit services, debt management, credit reporting and the functions of credit service companies, Canadian consumers can now put plan ahead to manage their problems in credit management, ratings and scores


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