Your credit rating affects all aspects of your financial activities when it comes to borrowing money, as it helps lenders determine the level of risk associated with lending money to you. If you have a solid credit score, lenders believe you’re more likely to make payments on time.
Your credit report is simply a listing of your debt, including credit cards, lines of credit, car loans, student loans, and so on.
Canada’s two credit reporting agencies are Equifax Canada and TransUnion Canada. Both agencies have a credit history file on anyone who has ever borrowed money. Every time you borrow money or make a payment on a loan or credit card, the lender then reports information about the transaction to these two agencies.
In addition to credit information, you’ll also find liens and judgments on your credit report as well as your address and possibly your work history. The accumulation of all this information is called your credit report.
Stay current with your credit report information
It’s a good idea to request a copy of your credit report from both credit-reporting agencies at least once a year, since these two reports can vary widely. You can make these requests online. Not only will this check help verify that your personal information is up to date, but it will also ensure that you have not been the victim of identity fraud.
The information displayed on your credit report varies based on your creditors and what they’ve reported about you. Potential lenders view your credit history as a reflection of your character. There’s no denying that our financial habits have a lot to say about the way in which we live our lives.
Credit scores range from 300 to 900. The higher your credit score, the better, as the mortgage products and interest rate that you’ll qualify for are often determined by your credit score.
Your credit report is a working document. This means that you have the ability, over time, to repair any damaged credit and increase your credit score.
Have questions about your credit report or how to boost your score? Answers are a call or email away!