There are two types of credit reports.
Your Credit Rating and Your Credit Score
You need to monitor both.
Lenders, Employers, Landlords and others will check your Credit Score first to see if you are worth the trouble of getting your full credit report
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WHAT DO YOUR BASIC CREDIT REPORT RATINGS MEAN?
These ratings are used in conjunction with your Credit Score to determine your credit worthiness
Standard Credit Bureau Ratings in Canada
By law, you are entitled to a copy of all the information a credit agency has on you.
Start by obtaining your credit reports from both Trans Union and Equifax. Each bureau uses different methods to calculate your report, so they will be different and you need to monitor both.
Do not phone, they will not discuss your credit report on the phone.
Errors are very common. You can dispute erroneous items on your report. Correcting them will take a lot of time, work and effort.
Call the credit bureau and point out their errors. They will send you a reporting form The credit bureau must review your complaints, however they will insist on your supplying the material using their forms. The forms explain how to file disputes and get corrections made.
It is an uphill battle and you will have to fight them and be persistent.
You also have a right to place a 100 word statement on the credit bureau file to be given to anyone who obtains a future report. To obtain a hard copy of your personal credit file by mail:
Your Credit Score is used to determine what sorts and amounts of credit you qualify for It is the primary lending tool by most lenders.
It is a numerical score between 300 and 900 calculated by assigning values to all the items in your basic credit report, credit history and financial life. The higher the score the better your credit.
It is used to screen all credit applicants and eliminate those who fall below a certain score.
Past Payment History: Past due items on file, severity of any delinquency, presence of any adverse public records, such as bankruptcy, judgments, lawsuits, liens, etc. This category alone suggests that you should make bankruptcy your last resort option only.
Amount of Credit Owing on Accounts How many accounts you have with balances, proportion of credit lines used to credit available proportion of installment loan amounts still owing.
Length of Time Since Credit Established Time since you opened your account(s) and how active those account(s) have been.
Acquisition of New Credit How often you have recently searched for or obtained new credit and your relative success at establishing positive credit history following past payment problems.
Types of Credit Established Number of and types of credit accounts established.
Lenders (and employers or landlords) will first look at your Credit Score to determine if it is worth processing your application.
WHERE TO GET YOUR CREDIT REPORTS
Consumer Relations Department
Box 190 Jean Talon Station
Montreal, Quebec H1S 2Z2
Tel: ( 514 ) 493-2314
1 800 465-7166
Fax: ( 514 ) 355-8502
WHERE TO GET YOUR CREDIT REPORTS
709 Main Street W
Hamilton, On L8S 1A2
Tel: 1 800 663 9980
Fax: ( 905 ) 527-0401
If you see an error on your report, report it to the credit bureau.
Consumers wishing to dispute items on their credit files can do so by contacting the Credit Bureau directly
You are the only one who can "fix" your bad credit.
There is no shortcut to erasing bad credit records. Building good credit takes time and effort. You cannot pay some scam outfit to magically get you good credit
Credit repair scams prey on the greed and ignorance of people with credit problems looking for a quick fix. Anyone who offers to repair your bad credit rating quickly for a fee is lying to you and will take your money and do nothing.
This is not legal advice, it is information
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