Understanding Your Credit Report in Barrie, ON

Your credit rating influences every aspect of your financial activities related to borrowing money. It can also impact your job prospects, the apartment you rent, and even your ability to open a bank account.

Your credit report is essentially a record of all your mortgage and consumer debts. In Canada, the two primary credit reporting agencies are TransUnion and Equifax. These agencies maintain credit history files for anyone who has borrowed money. Each time you take out a loan or make a payment on a loan or credit card, the lender reports the transaction details to these agencies. Besides credit information, your credit report also includes liens, judgments, your address, and possibly your work history. All this information collectively forms your credit report.

The details on your credit report depend on your creditors and what they have reported about you. Potential lenders and others, such as employers, view your credit history as a reflection of your character. Like it or not, our financial habits reveal a lot about how we live our lives.

Your credit score, also known as a beacon score, is a number that helps mortgage lenders assess your lending risk. Credit scores range from 300 to 900, with higher scores being better. The mortgage products and interest rates you qualify for are often determined by your credit score.

Many people are unaware that they have the legal right to obtain a copy of their credit report. A mortgage professional can assist you in obtaining this report and reviewing it to ensure all information is accurate.

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