How Is the Credit Rating in Canada Obtained?
A credit rating shows a person’s credit worthiness. It is an evaluation of a person’s overall credit history. A poor credit rating can mean loan disapproval. Therefore, it is important to regularly check your credit rating to ensure good standing. Getting a credit report in Canada is very easy. Here's how:
Your credit report
A credit report is made the first time you borrow money or apply for credit. Companies that lent you money or issued your credit cards regularly send credit reporting agencies current information about their financial relationship with you. This is how Equifax and TransUnion are able to obtain your credit rating. The ratings used are the North American Standard Account Ratings or the “R” ratings. The ratings range from R0 to R9, with R0 meaning new account and R9 meaning bad debt.
Equifax
You can request a free credit report from Equifax. You can place your order for a free credit report through telephone (1-800-465-7166), fax (514-355-8502), or mail. You can mail your requests to National Consumer Relations, P.O. Box 190, Station Jean-Talon, Montreal, Quebec H1S 2Z2. You can also download the request form through the website. If you want immediate online access to your credit report, you can do so by filing an order at Equifax for $15.50 CDN (this rate may vary in time).
TransUnion
TransUnion is another credit reporting agency in Canada. You can also request a free credit report from TransUnion. Quebec residents can call or mail requests to TransUnion Canada Centre de Relations Aux Consommateurs. Residents of other provinces can also call or write to TransUnion Canada, Consumer Relations Centre, P.O. Box 338, LCD 1, Hamilton, ON, L8L 7W2. Immediate online access to your credit report is also available at TransUnion for $14.95 CDN per month (rate subject to changes).
Your Credit Score
Your Credit Score is the single most important factor any Creditor will look at when deciding on whether or not to provide you with anything from a small personal loan on up to a Mortgage.
Video Tips
Steve Ely, President of Equifax Personal Solutions gives a Frank and Honest assesment of what you can do to Protect and Improve your Credit Score
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