Understand your credit rating report
What is a Credit Report?
Here are some simple explanations that will help you a lot.
You have probably already made a loan to buy a property or a vehicle. Before you are authorized a loan, the creditor has probably consulted your credit report. This is a list that contains information about your credit history and financial activities, including:
- Your credit rating
- Your address
- Your previous jobs
- Your loans.
- Your payment habits (time and repayment frequency)
- Payments with insufficient funds
- Existing debts
- NSF checks
- Credit used (credit cards, lines of credit and loans)
- Bankruptcy or court verdicts against you
In the eyes of potential lenders, your credit report and especially your credit rating reflect your lifestyle and financial wellbeing. They will use this information to authorize a loan and know whether you represent a risk for them. However, they will focus more on your credit rates to base their decision.
Credit rates
Know your credit rating to better understand the credit report.
The credit report is rated between 300 and 900 points. The higher the score, the better your credit rating. Those who hold an excellent credit rating often have access to better interest rates, such as when applying for a mortgage. Even those who do not have a high score may have access to financing solutions. However, an analysis of the file is required. If this is your case, consult our mortgage brokers.
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Credit rates report
Why is the credit rates important?
Purchasing power :
Your credit rating has an impact on your future financial activities. It directly influences your borrowing capacity and therefore your purchasing power. When it comes to borrowing from a financial institution, your code can earn you a cheaper financial product or a lower interest rate. However, the opposite is also true: you could get a higher interest rate or even get refused a loan.
Professionally :
Your credit code can also play on your job search and your professional life. Indeed, some employers must consider the credit rating before hiring a new employee, for example when the job is related directly to the financial field. A credit rating will then become a criterion for employment.
Is it possible to have a copy of your credit report?
The answer is yes, you are entitled to a copy of your credit report and the information contained there. You can apply by consulting our mortgage brokers; they will guide you through your process and tell you more about your credit report.
Who are the credit bureaus?
Credit ratings provide useful information to investors, corporations and governments because they are forward looking and unbiased. They can be used to evaluate credit quality, monitor counterparty risk, find an investment opportunity or analyze the sovereign debt of a country.
In Canada, you will find two major credit reporting agencies:
- Trans Union
- Equifax
Credit rating and credit report
Is it possible to improve your credit rating and credit report?
Absolutely! Since the credit report is a scalable document, you can improve the score of your credit rating. By adjusting consumer habits and following some key tips, you will definitely enjoy a better financial reputation. Consult us, if you are planning to buy a property or renew a mortgage. Our mortgage brokers can provide you with the required information.
