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You are probably among the 21 million or so Canadians who have credit file or report but don’t know what’s in it.
If you have ever applied for and been approved for a credit card, a loan or a line of credit, then credit bureaus have a credit report on you. They possess detailed information about your borrowing and repayment habits (for example, do you pay on time?}, including personal identification, your credit history, how much you owe, your credit limit on each account, a list of parties you have authorized to access this information and more.
Each of the accounts includes a letter and a number notation. “R” refers to a revolving debt, while “I” means an installment account. The numbers range from 0 (too new to rate) to 9 (bad debt or placed for collection or bankruptcy.) Any company thinking of giving you credit or providing you with a service that you need to pay for an ongoing basis, like electricity or rent, will check out your credit rating. Looking at your credit history, which goes back six years, they want to see that you pay your bills on time (i.e., that you are an R1).
If you have ever been denied credit, think there might be a mistake in your credit history or are just curious about where you stand, then you might want to obtain copy of your credit report. The two main Canadian credit bureaus, Equifax Canada and TransUnion Canada , will mail you copies of your reports for free, or provide you immediate online access for a fee.
You can also learn from these companies what your credit score is. This is a number that represents your credit risk at a given time. The two credit-reporting agencies, use a scale from 300 to 900. Scores in the high range mean that you are a low risk for lenders, which is good. The score also includes an R 1-9 rating as above.
If you find something wrong in your file (as many people do) that, you can write the credit agency in question and point out the error, with any relevant documentation you have to support your claim. You’ll usually get the form you need when you receive your credit report. The dispute forms are online, too, at Equifax and TransUnion.
At Doyle Salewski, we can help you solve your debt and budgeting crises, using our proven expertise and experience to achieve financial freedom and peace of mind. Contact us today for a free consultation, either through our Ottawa headquarters, 613-237-5555, or our fully bilingual Gatineau office, 819-776-7777. Email: [email protected].