Canadian credit reports hold a wealth of information about you and it can get very personal. In fact, creditors have access to the same information! So the next time you walk into a bank and inquire about a new loan, credit card or about investing, remember that the person you’re sitting in front can see right through you – well your finances anyway.
If you’ve never checked your Canadian credit report before, it can be overwhelming. Here are 10 things creditor’s can see on your credit report.
1. Your name and addresses
As the loan officer pulls your credit information, they will immediately know your full name, current address, and past addresses. Also included are other names that you may have used when applying for credit. A date log of your addresses – technically they can tell how long you lived at your current address and when you have moved. Credit Reports collect this information so that creditor can identify and find you if needed.
2. Your Canadian Social Insurance Number (S.I.N.)
Have you ever wondered why sometimes when you apply for a credit card they ask for your social insurance number? Well, it is used confirm you are who you say you are. A social insurance number is the single identifying number that is common throughout all credit reports in Canada.
Every Canadian will have 1 S.I.N. and so, every Canadian will have 1 credit report. Essentially, if you have bad credit, you can’t just decide to scrap that credit report and start over with a new one. Your credit report follows you where you go.
3. Employment History
When a mortgage broker or any creditor reviews your credit report, they will be able to tell where you work and your title/job. So you can’t really tell the lender that you are a Doctor when you are not. In fact, they will have access to your previous employment records too.
4. Installment Loans
Installment loans are things like mortgages or a car loan that you make a monthly payment on. It will show the amount of the loan and how much is being paid towards it.
5. Revolving Loans
With revolving loans a lender will be able to see the entire list of credit cards you own and use. Revolving loans are tings such as credit cards where you are given a credit limit and as you make payments towards the loan, you can use the remaining amount. Revolving loans debts can go up and down. Since the balance is showing, creditors and figure out how much debt you have. High debt loan or many maxed out credit cards may be a sign of trouble ahead for lenders.
6. Open and closed accounts
In a Canadian Credit report, the lender will be able to review all the loan accounts that you currently have open and all the past accounts that you have cancelled/closed. Some lists can be extensive, as many Canadians have more than major credit card and several department store cards. Points cards such as Air Miles are not included.
The credit report will also have additional information on how you closed the account – you paid it and closed it, you went through debt counseling or you went through bankruptcy and it was closed.
7. Payment History & Collections
All credit reports capture a history of your payments. Lenders will be able to see when you have made your payment, the amount and the current remaining balance. These same credit lenders will also see if you have any late payments – 30, 60, 90 days late and the date it was late – or if a payment has been sent to collections.
In this section, all information regarding any money you own that is in collections is reported here. Collection agencies put details such as the collection agency name, balance, date of last payment and date paid.
8. Public Records
Public records include things like bankruptcy, foreclosures and repossessions. All information regarding your financials that have gone through legal and court proceedings. Criminal charges, fraud etc can appear in this section.
9. Recent credit applications
One of the last and final sections of your Canadian Credit Report is the recent applications section. Lenders will see all the applications that you have made over a 3 year period. So if you went to multiple banks or brokers to find a car loan/mortgage, the lender will know that you have been shopping around at other banks too.
10. Credit Score/Credit Rating
Credit bureaus in Canada have a system that rates Canadians on their financial health. Credit agencies will give you a 3 digit credit score based on your credit history. This credit score will tell lenders if you have good/bad credit.
In addition to this, each individual loan or credit card will have a credit rating or “R” value attached to it, to give lenders an idea of how you handle your finances.
- R0: Too new to rate; approved but not used.
- R1: Pays (or paid) within 30 days of payment due date or not over one payment past due.
- R2: Pays (or paid) in more than 30 days from payment due date, but not more than 60 days, or not more than two payments past due.
- R3: Pays (or paid) in more than 60 days from payment due date, but not more than 90 days, or not more than three payments past due.
- R4: Pays (or paid) in more than 90 days from payment due date, but not more than 120 days, or four payments past due.
- R5: Account is at least 120 days overdue, but is not yet rated “9.”
- R6: This rating does not exist.
- R7: Making regular payments through a special arrangement to settle your debts.
- R8: Repossession (voluntary or involuntary return of merchandise).
- R9: Bad debt; placed for collection; moved without giving a new address or bankruptcy.