What is a Credit Report?
A credit report is the main tool lenders use to determine a borrower's creditworthiness. In Canada, there are two credit reporting agencies: Equifax and TransUnion. Each uses a different method of calculation so your credit score may vary slightly between the two, but they will both contain similar information. Your credit score generally includes:
Personal information (identifying information, home address, etc.)
Financial information (bankruptcies, delinquencies, record of payment history, etc.)
Current and previous credit usage and limits (credit cards, car loans, mortgages, etc)
Any new credit inquiries (whether approved or not)
Tips to Improve Your Credit Score
1) Establish multiple varied trades for at least 24 months
The longer a trade is active (with timely repayment), the better your score should be
Having various different types of trades should also improve your score (e.g. credit cards, loans, lines of credit etc.)
2) Illustrate regular use of credit at low levels on each trade line
Aim to utilize around 40% of available credit each month
Remember: a lack of credit does not equal good credit
3) Ensure repayment is on time
Set up automatic payments when possible
4) Check credit reports on a regular basis
Allows you to catch any mistakes, inaccuracies, or identity theft
5) Apply for credit only when needed
Information from Canada Guaranty - Credit Tips
Any questions? Please contact me at jessica.kuan@cleartrust.ca
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