Speaking with many first time home buyers and some home owners, they do not realize the importance of assuring that their credit report is correct. A credit report is a summary of your credit history. Your credit report contains factual information about your credit cards and loans in the eyes of the institutions. They know how long the credit has been extended, how much you owe, whether you make payments on time, whether you miss payments and whether you go over your credit limit. Did you realize that the Mobile phone companies have lobbied to be part of the reporting system? so when you’re pissed at your provider….pay the bill because it will bite you in the end. Reports also show bankruptcy, court orders debts written off and judgements.
Equifax and Trans Union are the two major reporting agencies in Canada. Both store and maintain credit information about individual Canadian consumers for use by members of the credit reporting agencies. For example mortgage brokers, banks leasing companies, credit card companies, retailers etc. They also store information such as public records from courthouses and collection agencies. Remember that the date that a creditor reports to Equifax is not always the same date that your last statement was created. There could be a lag in time and it also could be incorrect.

What is your credit score?
Your credit score is a statistical formula that translates personal information from your credit report and other sources into a three digit score between 300-900 with the higher score being more favourable. This should be stated that this is one of many criterion that a lender can and will utilize. For example in mortgage lending, the lender will take into account the property being purchased, other assets, equity and present and future income. There are certain factors that are used to calculate a credit score.
To get a free report call 18004657166 or www.equifax.ca this is also where you can correct your report if there are some real outstanding issues.
A common negative effect on your credit score, are pretty obvious and include continuous late payments to lenders. Also if the credit limits on revolving credit are too high or too many account balances for long time periods.
Your credit score is an important indicator of your credit worthiness. The higher your score or beacon the lower the probability that you will become delinquent on the credit an institution lends to you. Just to let you know they look at more than your score. An ideal score is somewhere between 680-780 but there are other factors such as your employment history.
It takes time to fix your credit report. Make sure you pay all of your bills on time. Try to keep balances below 35% of your available credit. Too many credit inquiries in a short period of time can be interpreted as a sign that you are having financial difficulties. So don’t let the car dealership run your report until you are ready to purchase the vehicle. A flurry of inquiries will prompt lenders to ask why you need the credit and could indicate that you have been declined.
Information was provided by Karen Fritz Centum Mortgage 705 446 5831


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