Simply put, your credit report is a summary of your financial history. Lenders require this document to determine whether they should grant you credit, funding, or a loan. Understanding how credits report work is crucial, so here is what you should know.
Your credit report contains information about some aspects of your life, but it makes no mention of your ethnicity, income, purchases paid in full, medical history or criminal record. Here is what’s included on it instead:
NEGATIVE ASPECTS
Negative information will stay on your credit report for up to six years, although there are exceptions. When lenders evaluate your credit report, the first things they will look at your payment history and existing debt. Those tend to carry the most weight when determining whether to lend you money. Late and missed payments will make it harder for you to get credit, as will bankruptcies.
THINGS TO LOOK OUT FOR
Considering your credit report is both a complete record of your financial activity and one of the main thing’s lenders use to assess your credit application, its accuracy is essential. Here are some types of mistakes that you should look out for:
If the creditor agrees there has been a mistake, they will correct it. If they don’t, you can make a complaint, attach a consumer statement to your report or file a grievance about the credit bureau itself.
Fox-Miles & Associates Inc. can help you gain your financial independence back. Whether you need a credit counselling service or are considering filing for bankruptcy, a licensed insolvency trustee will help you understand your situation and your options. Contact us today to set up a free consultation or visit one of our offices in Edmonton, Fort Saskatchewan, Spruce Grove or St. Albert.
