|
What Is A Personal Credit Rating
What is a Personal Credit Rating? Each and every piece of information from all financial transactions and loans and mortgages are compiled, rated and stored for future reference by the trinity of credit rating companies Equifax, Experian and Trans Union here in Canada.
This comprehensive compilation enables them to rate each individual on the basis of their financial history, number of accounts and loans, mortgages, amortization period, defaults, if any, etc. and this rating is your Personal Credit rating on which basis any future loans or credit cards will be sanctioned or denied. So it is very important and prudent to maintain a good credit history so that you dont get a bad credit rating. The most common rating is the Standard Account Ratings -R rating used in North America, which denotes revolving credit.
R1 is good while R9 means bad debt, while every rating in between stands for the delay in payments. A rating up to R7 is okay, as you seem to make the payments, even though late. Other credit ratings include O for an Open credit line and an I for installment credit. Though under the Consumer Protection legislation, every individual is entitled to a copy of their Personal Credit rating, the rating agency is not obliged to supply him a copy. It is up to the individual to request a copy which will be mailed to him free of cost.
Just remember to provide identification while requesting your copy of your credit rating. Normally it takes 2-3 weeks to get your copy. If you need it urgently you can buy it online or visit any of the provincial offices of one of the three agencies Equifax, Trans Union or Northern Credit Bureaus and get your credit rating document in person. Whichever method you choose, remember to submit two different ID verification documents to speed up the process.
After receiving your copy of your Personal Credit rating, in case of any discrepancies, immediately follow the procedures for reporting the same. The format for dispute resolution is contained in the credit rating report itself. The credit reporting agency is obliged to listen to your dispute and redress the discrepancy. However you need to be persistent, as this is a long drawn up process and can take up to 90 days. Ensure that the report is updated and the discrepancy removed.
Bounced checks, frequent late payments, defaulting on loans and bankruptcy will adversely affect your credit rating and it could take you anywhere up to 7 or even 10 years to get your credit rating improved. Your credit record has to be exemplary for at least a few years before your bad credit rating is changed by a rating agency.
Mostly they are leery of giving a good rating to someone who did not fulfill their obligations once and might do so again. So it is most advisable to go for a secured loan and keep to the repayment schedule without fail, to obtain and maintain a good Personal Credit rating, which will enhance your chances of getting a loan or mortgage in future in these troubled economic times.
This comprehensive compilation enables them to rate each individual on the basis of their financial history, number of accounts and loans, mortgages, amortization period, defaults, if any, etc. and this rating is your Personal Credit rating on which basis any future loans or credit cards will be sanctioned or denied. So it is very important and prudent to maintain a good credit history so that you dont get a bad credit rating. The most common rating is the Standard Account Ratings -R rating used in North America, which denotes revolving credit.
R1 is good while R9 means bad debt, while every rating in between stands for the delay in payments. A rating up to R7 is okay, as you seem to make the payments, even though late. Other credit ratings include O for an Open credit line and an I for installment credit. Though under the Consumer Protection legislation, every individual is entitled to a copy of their Personal Credit rating, the rating agency is not obliged to supply him a copy. It is up to the individual to request a copy which will be mailed to him free of cost.
Just remember to provide identification while requesting your copy of your credit rating. Normally it takes 2-3 weeks to get your copy. If you need it urgently you can buy it online or visit any of the provincial offices of one of the three agencies Equifax, Trans Union or Northern Credit Bureaus and get your credit rating document in person. Whichever method you choose, remember to submit two different ID verification documents to speed up the process.
After receiving your copy of your Personal Credit rating, in case of any discrepancies, immediately follow the procedures for reporting the same. The format for dispute resolution is contained in the credit rating report itself. The credit reporting agency is obliged to listen to your dispute and redress the discrepancy. However you need to be persistent, as this is a long drawn up process and can take up to 90 days. Ensure that the report is updated and the discrepancy removed.
Bounced checks, frequent late payments, defaulting on loans and bankruptcy will adversely affect your credit rating and it could take you anywhere up to 7 or even 10 years to get your credit rating improved. Your credit record has to be exemplary for at least a few years before your bad credit rating is changed by a rating agency.
Mostly they are leery of giving a good rating to someone who did not fulfill their obligations once and might do so again. So it is most advisable to go for a secured loan and keep to the repayment schedule without fail, to obtain and maintain a good Personal Credit rating, which will enhance your chances of getting a loan or mortgage in future in these troubled economic times.
Related Articles
what is an employment history
what is a credit score
what is a credit repair company
what is a credit repair ebook
what is a credit inquiry
what is british columbia consumer protection
what is a credit repair business
Category
credit repair
