Credit Bureau Information & Tips
Banks and lenders always ask me about my credit history. What is a credit history?
Basically, it’s a summary of all credit you have applied for and used. Most importantly, it’s a summary of how consistently you paid your financial obligations.
It includes information on:
1. credit cards,
2. lines of credits,
3. car loans and leases,
4. student loans, bank loans and more.
For each of these items, it will show:
1. credit limit and monthly payment
2. how often you made your payments on time,
3. how many payments have been late,
4. how long you have had the credit facility.
It also shows information on:
1. Collections
2. Bankruptcies
3. Foreclosures
4. Judgments.
Credit Reports can also be used to confirm employment, and personal information such as address and date of birth.
A high credit score will make it easier to qualify for a mortgage, and when applying for any source of credit or loan. A poor, or low, score may influence the interest rate you are offered, or may even lead to you being declined on the application.
Your credit score is an indicator of how likely you are to repay future debts based on past performance, and therefore banks will use it when assessing the risk of lending money.
The banks will also use the report to assess what debts you currently have and compare this with your current income. They do this to check how reasonably you can afford the new credit or loan you are applying for.
Equifax and TransUnion are the two principle credit bureaus in Canada and you can contact both directly to check your own score and to find out more. It is always good to check your own score, to make sure information is up to date.
Here are some suggestions on how to maintain a good credit score:
- Check you credit report at least once a year to make sure its accurate.
- If you have outstanding debts or collections, make sure you pay them off as soon as possible.
- Pay all bills and monthly payments on time.
- Do not max out or go over the limit on credit cards or line of credits.
Links:
www.Equifax.ca
www.TransUnion.ca
Contact Us
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Calgary, AB
T2R 1J3
Toll Free 877.284.4009
P 403.284.4000
F 403.284.4010
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