Anybody that has ever borrowed money to buy a house or a car or applied for a personal loan or credit card has a credit score in Toronto.
Presently, over 21 million adults have a credit score in Toronto and Canada at large. The sad part is that most of them have no idea what is a credit score and how it works.
Did they come with any errors? Have you been rejected for a loan offering and do not know why? Is any fraudster trying to claim your identity? Well, these questions and more will be answered if you look up your credit report.
What Does a Credit Report Contain?
You may be taken aback by the amount of your personal financial data that can be found in your credit report. Basically, your credit score in Toronto contains vital information about every loan you have applied for or taken out in the past six years – whether you are prompt on your payments, the outstanding balance you owe, the limit of your credit on your accounts, and a list of credit lenders that have checked up on your file.
Every account has a notation that contains a letter and a number. In addition, the letter “R” represents a recurrent debt, while the letter “I” signifies an installment account.
Furthermore, numbers can range from zero (representing a new rate) to nine (which signifies bankruptcy or a bad debt due for collection). In the case of a revolving account, the notation to look out for is R1 – which means that you promptly repay all of your bills as agreed within 30 days.
Any company that offers you any service before you actually pay for it (for instance a rental apartment, phone service, or car rental) can always request a copy of your credit report. They are looking to find a good amount of “Paid as agreed” remarks and notations in your report, and the history of your credit report.
All credit information, good or poor will continue to reflect on your credit report for a minimum of six years.
What is a credit score and why is it important?
A credit score or rating also known as FICO score or Beacon is not included in a normal credit report. A credit score is a mathematical expression that interprets the information in the credit report into a number – usually a three-digit number – that can enable lenders to make wise credit decisions.
Are there any cutoffs or average marks?
Well, according to TransUnion, anybody with a credit rating that is below 650 may find it difficult to get new credit. Most mortgage lenders want to see at least a 680 before they can give you a good interest rate. Although, the particular formula that is used to calculate credit ratings by the bureaus is not available to the public. However, lenders will make nothing off you if you regularly pay your bills every month.
Thus, those who carry outstanding balances into different months but still promptly pay off their minimum monthly balances can be given higher credit ratings than those who just pay off all their debt at the end of every month.
This should not come as a surprise as credit bureaus are basically funded by lenders, businesses, and banks, but never by consumers.
How to request a copy of your credit score and credit report?
To request for your credit score in Toronto, simply send a mail to any two of the national bureaus in Canada: TransUnion or Equifax Canada. It is advisable that you check in with both bureaus.
To get your credit report sent to you by post, you would be required to send two copies of your identification along with some general background information about yourself. The report should arrive at your address in two to three weeks. To find out in details about what you need to request for a credit report in Toronto, check the national bureau websites.