Credit Reports

What is a credit report?

Along with the credit histories of millions of other people, your credit history is recorded in
files maintained by at least one of Canada's three major credit-reporting agencies: Equifax,
TransUnion and Northern Credit Bureaus. These files are called credit reports.

A credit report is a "snapshot" of your credit history. It is one of the main tools lenders use to
decide whether or not to give you credit.

Who can see your credit report?

You have the right to see your credit report. No one else can have access to the information in
your report unless you allow it.

Usually, when you sign documents you are allowing the organization that is giving you credit to
check your credit history. Credit-reporting agencies will only give information from your credit
report to someone else when you have given permission.

What is a credit score?

Your credit score is a judgment about your financial health, at a specific point in time. It
indicates the risk you represent for lenders, compared with other consumers.

There are many different ways to work out credit scores. The credit-reporting agencies
Equifax and TransUnion use a scale from 300 to 900. High scores on this scale are good. The
higher your score, the lower the risk for the lender.

Lenders may also have their own ways of arriving at credit scores. In addition, lenders must
decide on the lowest score you can have and still borrow money from them. They can also use
your score to set the interest rate you will pay.

What factors influence your credit score?

Credit-reporting agencies and lenders use a mathematical formula to figure out your credit
score. This formula takes into account various factors described in your credit report, such as
your payment history, outstanding debts etc.

How long do these factors affect your credit score?

Information that affects your credit score is usually removed from your credit report after a
certain period of time.

How can you check your credit report and score?

It's a good idea to request a copy of your credit report from the three credit-reporting
agencies at least once a year to verify that your information is up to date. Because your credit
information can be kept by more than one credit-reporting agency, and because those
agencies do not necessarily share information, it's important to check all three credit reports
carefully.

How to Order Your Credit report:

Although there are many ways to order your credit report the easiest and safest method is by 
Internet. You can order your credit report through the reporting agencies' websites. This
method o ordering you credit report is convenient and fast since you will receive your credit
report online only a few minutes after you have ordered your credit report.

How to Get Your Credit score:

The only way you can obtain your credit score is online, through the credit-reporting agencies'
websites. The cost of your credit score will include an online copy of your credit report. You
will receive your credit score (and credit report) online a few minutes after you have made the
request.

The Loan Guide provides access to free information about Credit Reports.