Luc:

• works full-time (35 hours/week) and is paid $30/hour
• lives pay cheque to pay cheque
• has no savings
• was late the last two months in paying his portion of the electricity bill which is in both your names
• goes to restaurants and nightclubs regularly (pre-COVID-19!)
• missed his portion of the June 1^st month's rent (lease is in both your names)
• has three credit cards that are maxed out; he has applied for another one (and is waiting for it to arrive)
• bought a BMW in January, he has paid the loan on time every month (the car is important to him
• he was part of Desjardins Group data breach last year (one of the largest data breaches among the Canadian financial institutions for the theft of memberdata)

• Based on the information provided, Luc wants to declare bankruptcy for a fresh start as he thinks this will be an easy way out. You know that declaring bankruptcy is only if no other options exist to deal with the debt. Luc is not at that point. Give Luc two recommendations to start turning things around.

• __________________________________________________________________________________________________________________________________________________________
• __________________________________________________________________________________________________________________________________________________________

• You have recommended that Luc order his credit report. Luc can order a copy from either Credit Bureau called __________________ or _____________________. You let Luc know that a Credit Bureau(sometimes referred to as a consumercreditreporting agency) is a company that collects and compiles information regarding credithistory from banks, other financial institutions, and various other bodies such as courthouses and the Office of the Superintendent of Bankruptcy.

• You let Luc know that a lender will use his credit score to determine if they will lend him money and how much _______________________ they will charge for him to borrow.
• Canada's credit bureaus, as well as many credit card issuers and financial institutions, also offer ________________________ which are services that can provide him with a notification after certain updates to his credit file, such as a credit inquiry. He could consider using this service as he was affected by a data breach. This service can help Luc see if somebody is trying to apply for credit in his name.
• Provide Luc with 3 ways that he can improve his credit score:
• _______________________________________________________________________
• _______________________________________________________________________
• _______________________________________________________________________

• Explain to Luc what are "Hard Hits" (i.e. hard queries) and "Soft Hits" (i.e. soft queries) that appear in his credit report and how they impact a credit score.

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

• What is the potential impact to you, as Luc's roommate if Luc does not turn his lack of credit management around and does not pay the June 1^st rent?

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________