Understanding your Credit Report
As credit has become more and more abundant in our society, your credit report, and thus your credit rating, has become more important in your daily life.
Your credit rating affects all aspects of your financial activities when it comes to borrowing money. Your credit rating also has the ability to affect the job you get, the apartment you rent, and even the ability to open a bank account.
How do credit reports work?
A credit report lists all of the places, people and companies that have lent you money. It also includes information about your ability to repay these debts. Here in Canada, two companies do this job: Trans Union and Equifax. The two credit agencies have a credit history on anyone who has ever borrowed money. Whenever you borrow money or make a payment on a loan or credit card, the lender then reports that information to these two agencies. You have a credit report that has information about your credit. You can see where you live if you have any debt, and what you owe.
The information on your credit report will vary based on which creditors you owe money to and what they have said about you. When people want to know more about you, they will look at your credit history. It will show how responsible and careful you are with money.
A credit score is a number that tells mortgage lenders how risky it is to lend you money. A higher credit score (300 - 900 is the range) is more ideal. If you have a good credit score, then the mortgage lender will offer you a loan with low-interest rates, or they might not charge you any interest at all.
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 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 document. This means that you have the ability over time, to repair any damaged credit and increase your credit score. Contact Taylor Mortgages today to get started on the application process now, or to find out more about how we can help you with your credit report.