Your credit history is compiled in a credit report. Credit reports are one of the factors that prospective creditors and lenders consider when deciding whether to provide you credit and at what interest rate. It's critical to routinely examine your credit report since creditors and lenders use it to assess your creditworthiness. Examples of information they may look at include your payment history and the number of current credit accounts. What goes into your credit report. How you can improve it and fix discrepancies. Brought to you by your local Toronto Mortgage Broker.
In Canada there are 2 Credit Bureaus. Equifax and TransUnion. These two national credit reporting companies keep consumer credit reports using information provided to them by creditors and lenders. Due to different lenders reporting information to one, the other, or sometimes neither of the two organizations, your credit report may not be the same with each of them.
The first part is your identity. This contains information of your name, address, date of birth, Social Insurance Number, and any employment that has been reported to the Bureaus.
The second part is the current credit accounts you have. This includes credit cards, loans, mortgages, car loans, phone plans, and many more. There are also details such as amount, credit limit, date opened, date closed, payment history, and any other available information.
The third part is inquiries on your credit report. This include "soft" and "hard" inquiries. Soft inquiries are only available for you to see. Hard inquires is what potential lenders and creditors see. And what shows up when a lender or creditor pulls your credit report. These inquiries only stay on your credit report for 3 years.
The fourth and final main part of your credit report are collections and public records. Accounts that are past due and have been turned over to a collections agency appear in the collections category. Public records include any court matters that are reported such as bankruptcy and consumer proposals.
Contact the Lender First
The one who submits information to the credit bureaus is the lender. Try to get in touch with the lender as soon as possible to sort out the matter. You should first bring up any erroneous information with them if it has been reported by them. It is a good idea to have as much supporting evidence on hand when chatting with the lender. For instance, if you made a payment on time but it shows up as late on your credit report, you'll need to know the precise day you made the payment and be prepared to email the lender screen shots of your bank account. If a lender is in error, they typically have a relatively forgiving attitude. If that's the case, you ought to have little trouble solving the issue. It can take some time for the repair to appear appropriately on your credit record. After a few months, you should follow up again if it hasn't changed. Additionally, having something in writing is a smart idea. In this manner, if a different lender asks about it, you'll have documentation to support that it was an error and not your fault.
Contact the Credit Bureaus
You should get in touch with the credit bureaus directly if getting in touch with the lender doesn't work. It is best to exhaust all options with the lender before contacting the credit bureaus because this process takes more time. Nevertheless, it's a crucial step. Depending on how significant the error is, a mistake on your credit report can prevent you from obtaining finance in the future. It shouldn't be disregarded because it can result in you paying higher interest rates. You should take the necessary actions to have it fixed.
Equifax and TransUnion are the two main credit bureaus in Canada. You should check your credit report with each to determine if the error is present on both. It might occasionally just show up on one. There are a few potential causes for this. It's possible that the error just affects one credit bureau or that the lender only reports to one credit bureau.
Provide supporting documents as soon as possible because the credit bureaus will require it. The credit bureaus will start an investigation and open a case for you. Each credit bureau has its own dispute resolution process, so be sure to follow it and supply everything on time. You also have the option of adding a Consumer Statement on your credit report. You can set this statement to appear only for a certain amount of time, as you wait for the errors to be corrected. Anyone that pulls your credit report, will have a chance to view the statement.
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