What is Credit Information?
Credit is a broad term that includes everything ranging from credit cards to auto loans
to mortgages or even leasing
an apartment building. When a person borrows
a sum of money or resources from another person for an interest over a fixed period of time it is known as credit. Credit information includes various data such as interest rates, the security given by the borrower, various complex calculations pertaining to interests etc.
The interest rates on credit and several other important factors are determined by certain credit information such as credit history
, age of your credit account, how you utilize your credit, etc. Credit history
indicates how good you are at repaying your credits and more importantly repaying them on time. The worse your credit history is, the harder it becomes to get new credit at reasonable interest rates.
Also if you have a good credit history, not much security will be demanded of you. The age of the account
also plays a major role. A person with a credit history, no matter how bad, will find it easier to get credit as compared to a person with no credit history at all. This is because the older your credit history is, the more information it will give your creditors to asses.
Utilization of the credit is also very important. For instance if you have maxed out on your accounts many times, it will reduce your score damaging your chances of getting a good credit in the future.
In Canada, credit information is collected by two organizations - Trans Union
of Canada Inc and the Equifax Canada
Inc. This information is made available to creditors such as banks, credit card companies
, etc. The information that is collected by them is governed by various laws to ensure that it is not misused. Every payment you make, every deadline you miss and any other credit information will be added to your records. Since these agencies use highly advanced technologies to track your credit history, it is not possible to deceive them.
You can obtain the credit information on your report by simply completing an order form online or by giving them a call on the phone. The agencies will then mail you the report within a short time. It is good practice to get the information from both the agencies. They can then be compared for any errors.
In Canada, all citizens have a right to access their credit information and they cannot be denied the right. You need not employ or pay any agency to do it. Also if you keep tabs on the information regularly, you can find out if there are any inaccuracies and report them on time. However if you simply have a bad credit
history that is accurate, nothing can be done about it. Although many companies claim that they can fix it for you for a nominal fee, it is simply not possible. Go get your reports now so that you can stay updated and plan your budget properly! What is Credit Information?