In this article, we will help you explain some of the common terms about credit and credit reporting in Canada. Every Canadian will have a credit report, some of them may be only a page long, while others will have several pages of historical financial information. Having said that, each person will only have 1 credit report. Similar to how you have only 1 social insurance number, no matter where you move or go, your credit report will follow.
The common terms you will read about are,
Credit Report Canada
Have you ever wondered what information your own individual credit report actually contains and do you know what credit report is? Unfortunately, many Canadians have no idea. You may be scrupulous in keeping up to date with your payments but nevertheless, errors on your credit report can create problems for you and these errors can go undetected for many years. They only come to light when you are applying for credit and it may come as a nasty surprise to realise that you have bad credit. You will only have 1 credit report your entire life. It is a living document that constantly changes as you spend and take out loans. If you have bad credit, you can’t easily scrap your report and get a new one. You will need to slowly rebuild it.
A responsible lender will always want to check your credit score. Virtually all Canadian banks will pull a credit history report the moment you apply for a loan. By doing so, they will be able to see how you rank and how likely they will give you a loan. You credit score is calculated by the credit bureau and shared with lenders such as the banks in an effort to help them make a judgement as to whether or not you qualify for a loan. The Credit Score is actually a standard measure of what your credit worthiness is, and takes into account many factors such as payment frequency and spending habits.
This is an in-depth, detailed report of your individual financial information and is only available through two Canadian reporting organisations. Credit histories are always completely up to date and is considered the only standard measure of the current state of your financial health – without this detailed report, no responsible lender will even consider doing business with you.