Canadian Credit Reporting
Many people don't realize how important it is to maintain a good Canadian credit rating. Nor do they understand what is involved in achieving this. This fact sheet is designed to help the individual to learn credit basics and hot to attain and maintain a good credit score.
The first step is to review your own individual credit report. You can contact your local credit bureau for a copy of this usually for a nominal fee.
One thing to note when ordering there are two types of credit reports that can be requested with or without your credit score (beacon score). It is more useful to order the version with the beacon score as this number plays a major role in the credit granting decision and can help you to determine if further steps need to be taken to improve your credit.
In Canada there are two major credit bureaus - Equifax and Trans Union. Each of these companies can provide you with a copy of your individual credit report.
Once you have a copy of your credit report there are few things that should be checked.
- wrong mailing addresses
- incorrect social insurance number
- signs of identity theft
- errors in your credit accounts
- late payments
- unauthorized hard enquiries
The hard inquiries are ones, which affect your credit score while soft inquiries done by your existing creditors don't.
What is a Beacon Score?
Your Canadian beacon score is a predictive credit worthiness score. It forecasts the credit behavior of an individual for 2 years and ranges from 300 to 900.The higher the score the better it is for you.
For unsecured credit, mortgage lenders typically look for score above 650.For mortgage-lending score below 600 may be subject to tighter scrutiny or higher interest rates and/or fees.
How long do items report on my credit report?
Inquiries remain on your report for three years after the date of inquiry. Your credit information remains for six years from the activity date.
Consumer proposals will remain on your report for 3 years while the first bankruptcy reports for 6 years. Should you be unfortunate enough to declare bankruptcy twice or more, the second and subsequent times will report for 14 years each.
One can see how credit abuse can impede your ability to obtain credit in the future.
What about credit repair?
- Never pay for these services
- There is no such thing in the truest sense
- Only responsible credit practices over time can improve poor credit history.
- Ensure timely payments with pre authorized withdrawals
- Re-establish credit as soon as possible after being discharged from bankruptcy
- If necessary obtain secured credit in order to re establish credit ,credit card loan or line of credit
Identity fraud/theft is the single most increasing crime in Canada-protect yourself! Review your credit report regularly
How much does it cost to see my credit report?
Equifax
Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, we leverage one of the largest sources of consumer and commercial data, along with advanced analytics and proprietary technology, to create customized insights that enrich both the performance of businesses and the lives of consumers.
Basic credit report: $15.50
With a credit score: $23.95
Trans Union
TransUnion gives businesses and consumers the power to achieve their goals and helps build stronger economies worldwide. Our dedicated associates support more than 50,000 customers on five continents and more than 500 million consumers worldwide.
We work closely with our clients to understand their specific needs, and develop and recommend solutions designed to help them succeed. Businesses can better manage risk and customer relationships. Consumers can better manage their credit.
Credit report with credit score: $14.99
Free credit score if you are :
- Ordering by mail
- A victim of fraud
- Unemployed
- A welfare recipient
- Denied credit in last 60 days