Your Credit Report - Why you should see it.
When you apply for a credit card, a loan, or make a large purchase, lenders will evaluate your credit risk based on information contained in your credit report. Your credit report can influence everything from whether you get the credit you applied for, to what the interest rate and payment terms will be.
Reviewing for accuracy
Many financial planners now recommend Canadians view their credit file at least once a year. This is considered an important step in assessing your individual financial situation and drafting a viable financial plan. The first reason is to make sure there are no inaccuracies. Even slight inaccuracies in credit reporting made by lending institutions can have an adverse impact on your credit standing. From a lender's point of view, this can make the difference between considering you a good credit risk or a bad one. By checking your credit report periodically, you can ensure that your report file contains information that accurately reflects your credit history.
Protecting against identity theft
The second reason for checking your credit report regularly is the rising tide of identity theft, not just in Canada, but around the world. Reviewing your credit report will tell you what credit has been granted in your name, and which lending institutions have accessed your credit report file. Strange or unfamiliar activity can serve as an important indication that someone has made an attempt to impersonate you and obtain credit in your name, whether successful or not. Either way, it's simply good to know.
Get your credit report online today!
There are two credit reporting agencies in Canada:
Equifax Canada, and TransUnion Canada.
Each of these companies offers Canadians the ability to obtain their credit reports online for a fee.
Each also offers free credit reports which you can request by mail. Reports are mailed back to you via Canada Post. See their respective web sites for details.
