Mississauga, April 29 (CINEWS): You may not realize it, but two organizations in Canada are actively recording your credit history.
The credit cards you use, the bills you pay, and the loans you obtain all contribute to the story of your credit management, as compiled by Equifax Canada and TransUnion Canada.
“Lenders usually review your credit report, which is available from one or both of those reporting agencies when you apply for credit,” says Lucie Tedesco, commissioner of the Financial Consumer Agency of Canada (FCAC). “Potential employers and landlords can also use your credit history to assess your financial reliability before they offer you a job or housing.”
Your credit report includes details about:
• when you opened an account
• whether you make your payments on time
• whether you go over your credit limit
• whether you’ve filed for bankruptcy
• whether you’ve had an account closed for reasons such as fraud
All the information in your credit report is used to produce your credit score — a three-digit number, based on a mathematical formula, which ranges from 300 to 900.
Your score could rise and fall over time, depending on how you use credit.
A high credit score may help you obtain a lower interest rate on a loan, which could save you a lot of money over time.
If you have a low credit score, financial institutions may refuse to lend you money, or they may ask that you provide a co-signer for your loan. You may also have to pay a higher interest rate.
Tedesco points out that in addition to reviewing your credit report information, lenders will usually check into your income, job status and any assets you own before deciding if they want to lend you money.
More information about understanding your credit score is available on the FCAC website at itpaystoknow.gc.ca. – NewsCanada