People are dependant on credit more and more these days, and therefore, your credit report, and thus your credit rating, has become important in your daily life. Your credit rating will affect all aspects of your financial activities when it comes to you borrowing money. Your credit rating has the ability to affect the job you get, the apartment you want to rent, and even the ability to open a new bank account.

Your credit report is a listing of all of your mortgage and consumer debt. In Canada, the two main credit reporting agencies are Equifix and Trans Union. Both agencies have a credit history file on anyone that has ever borrowed money. When you borrow money, or make a payment on a loan or credit card, the lender reports the information about the transaction to these two agencies. You will also find liens and judgments on your credit report, your current address and possibly your work history. The accumulation of this information is called your credit report.

The information on your credit report varies based on your creditors, and what they’ve reported about you. Potential lenders and others, such as employers, review your credit history as a reflection of your character. Whether we like it or not, our financial habits say much about how we choose to live our lives.

The credit score, or also known as a beacon score, is a number which gives mortgage lenders an idea of your lending risk.

Credit scores range from 300 to 900, and the higher your credit score the better. The mortgage products and interest rate you receive is determined by your credit score.

One thing that many people do not know is that you have the legal right to obtain a copy of your credit report. A mortgage professional like myslef can help you obtain a copy of this report, and go through it with you to verify that all of the information is true and correct.

The good news is that your credit report is a working in progress document. This means that over time you have the ability to repair any damaged credit and increase your credit score.

All the best,

-D