Any time you apply for financing, whether it be a Mortgage, vehicle finance or perhaps a line of credit at a department store, your credit history will be checked and your score evaluated. Financial institutions that are in the business of lending money use credit scores as their primary source of risk evaluation. A high credit rating is therefore of utmost importance if you wish to gain credit. Credit 'Lenders' consider credit history the most accurate indicator of a 'Borrower’s' willingness and ability to repay debt. Your credit score is linked to your S.I.N (Social Insurance Number) and as a general rule of thumb your credit score is based on the following factors:
Here are some simple tips to establishing and maintaining a high credit score:
CREDIT REPORT AGENCIES:
As already explained, a credit history will be used to obtain a mortgage or when buying a car or when renting an apartment or house.
Some companies that provide this service are listed below:
Trans Union of Canada Inc
Consumer Relations Centre
P.O. Box 338, LCD 1
905 - 525-0262
A consumer can buy a report online at Trans Union for CAD$14.99. This company provides two reports; a basic report for CAD$14.50 and a deluxe report for CA$21,50 (shows the consumer how to correct a score over time). The score is developed by Fair Isaac & CO (FICO) and the scores range between 300 and 900, with the higher score showing a better rating than a lower score. The average Canadian score is about 770.
Jean Talon Station
This company provides two reports; a basic report for CAD$14.50 and a deluxe report for CA$21.50 (shows the consumer how to correct a score over time). The score is developed by Fair Isaac & CO (FICO) and the scores range between 300 and 900, with the higher score showing a better rating than a lower score. The average Canadian score is about 770.
Consumers have the right
Immigrants should also remember as consumers they have the right to access their credit information.
Risk of checking too often
To check once a year is okay, but to check more is risky as some lenders might be concerned about why a certain consumer is checking his/her credit history so many times a year..
Sometimes the credit information held on consumers is incorrect. It is not uncommon for people to be flagged with accounts they do not even have. A consumer can correct these errors - but the onus rests on the consumer to check this out and have it corrected. Immigrants are advised to always keep record of all their communications with credit reporting agencies and should not expect any errors to be corrected unless it is in writing.