Your credit rating influences all aspects of your financial activities related to borrowing money. It can also impact the job you obtain, the apartment you rent, and even your ability to open a bank account.
Your credit report is a detailed record of all your mortgage and consumer debts. In Canada, the two primary credit reporting agencies are TransUnion and Equifax.
These agencies maintain a credit history file on anyone who has ever borrowed money. Each time you borrow money or make a payment on a loan or credit card, the lender reports the transaction information to these agencies. Besides credit information, your report will also include liens, judgments, your address, and potentially your work history. All this compiled information forms your credit report.
The details on your credit report vary based on what your creditors have reported. Potential lenders and other parties, such as employers, view your credit history as a reflection of your character. Whether we like it or not, our financial habits reveal a lot about how we choose to live. Your credit score, also known as a beacon score, gives mortgage lenders an idea of your lending risk. Credit scores range from 300 to 900, with higher scores being more favourable. The mortgage products and interest rates you qualify for are often determined by your credit score. Many people are unaware that they have the legal right to obtain a copy of their credit report.
The positive aspect is that your credit report is dynamic. Over time, you can repair any damaged credit and improve your credit score.
As a mortgage professional, I can assist you in obtaining this report and review it with you to ensure all the information is accurate.
