Understanding Your Credit Report: 5 Things To Know

Your background is recorded and kept.

Did you know that all of your credit history is recorded and kept with one of the 2 credit bureaus in Canada? And that the majority of creditors use these tools to accept or refuse to grant you a loan or credit?

The insolvency experts, having many questions from our clients on this subject, have decided to demystify for you what a credit report is! With more information at your fingertips, we hope you will be able to improve your credit report!

2 credit reporting agencies

It is recommended that you review the contents of your file once a year to ensure that your personal information is up to date and without any errors, in addition to ensuring that you have not been the victim of fraud.

What information is entered in my credit file?

A credit report usually includes your personal and banking information, as well as anything related to your credit. Public documents such as bankruptcy or an unfavorable court decision on credit taken after a lawsuit as well as secured loans are also archived there. Finally, your file also contains collection information and statements in the event of a dispute, as well as all previous requests made to credit bureaus.

Why check my credit report?

Usually, when you sign documents for a loan or credit card application, you authorize the creditor, or whoever will lend you the desired amount, to search one or more credit reporting agencies in order to find out. make sure you are a good payer. If your credit history is excellent, it can work in your favor, for example, by having a lower interest rate than someone with a bad credit history. Our experts strongly recommend that you consult our article entitled “ How do I consult my credit report? to obtain and correct information on your credit report as needed.

Who can view my credit report?

Besides the creditors to whom you authorize such a check in writing, you are the one and only person who has the right to access your credit report. The information stored there is confidential, unless you allow someone else to have access to it for the following reasons: applying for a credit or loan, collecting a debt, renting a house or an apartment, job application or insurance.

Your credit scores: your credit score and score.

Your payment history is displayed in various ways in credit reporting agencies:

• The credit score contains a letter and a number between 1 and 9. The letter indicates the type of credit, while the number indicates the number. your credit situation. We suggest you read our article titled ‘ How Do I Understand My Credit Score? to learn more about it.

• The credit score ranges from 300 to 900. It comes from a judgment made about your financial health at a specific time. To learn more about your credit score, we recommend that you read our article titled ” How Do I Understand My Credit Score? ”

Be in control of your situation.

With these 5 major points, we hope that you will be able to understand the importance of consulting your credit report, keeping it up to date, and doing everything in your power to improve it. Note, however, that if your credit report is poor and you have difficulty obtaining a loan or credit, it would be imperative to consult an insolvency professional quickly in order to obtain solutions to your debt problem.