It’s important for people to understand all of the current and historical information that is on the credit reports provided by Transunion and Equifax. The major credit agencies may use close to 50 scores that are provided for banks and other financial institutions that submit a query. Only the most pertinent information is made available on these reports so that individuals can monitor and identify any outstanding obligations that are having a negative impact on their credit.
Some of the more basic information kept on the credit report include personal information, credit information, banking information, public records, collection information, a consumer statement and credit report inquiries as well. It’s important for consumers to understand each of these sections in order to be aware of the type of information that makes it into the credit reports for people living in Canada.
The personal information section consists of the basic data that can be used to verify someone’s identity. Some of the information in this section includes name, previous and current places of residence, current and previous places of employment, social insurance number, date of birth and telephone number as well. This is one of the first places an individual should look for discrepancies if they believe there is a mistake on the credit report or that their identity may have been compromised. If there is personal information on the report that doesn’t look right, be sure to contact the major credit agencies as soon as possible to get it straightened out.
The section with credit information is a record of all the transactions made involving personal credit. Information in the section would include a mortgage, a loan, a line of credit, a credit card or even a retail card. It’s helpful to review this section when your personals credit is lower than you think it should be. It’s not uncommon for a small outstanding payment to slip between the cracks unnoticed; this is especially true for people that have moved around a lot. This is one of the most important sections to review when looking over a credit report.
The section with the banking information is very important as well. This section will have information on bad checks that have been written or bank accounts that were closed or held due to non-sufficient funds. This banking information is important because negative data listed here is one of the quickest ways to get your creditworthiness declined of rejected. It’s important to stay informed regarding outstanding debts or obligations to any banks. This is important because most of the time someone tries to use their credit, a financial institution is involved. Once banks see someone doesn’t follow through on these types of agreements, getting credit applications approved can be seemingly impossible until you get the report rectified.
The public records section contains some of the major events that may have happened in someone’s life that can affect their long-term credit-standing. Some of the information that would be included here involves bankruptcy, lawsuits that carried credit related judgments and secured loans that would be backed by personal assets.
The section with collection information is important as well. This section keeps a list of any outstanding debts someone has that were not paid in time before making it to collections. Anytime someone has to deal with a collection agency it will show up on the credit report. It’s important for people that move around a lot to make sure there’s not anything in this section. Credit payments or other bills will fall into collections if creditors or an organization is unable to reconcile the payments within a reasonable amount of time. Many people have problems with their credit because forgotten bills or payment obligations fell into collections unbeknownst to the debtor.
The consumer statement on the credit report is a section where the consumer can provide a warranted explanation for situations or payments that seem currently outstanding. A fraud warning or dispute with a financial institution would be included in this section.
Credit Report Inquiries:
The credit inquiries section keeps a record of all the people or institutions that have already inquired about someone’s credit. Even if you inquire about your own credit report you can expect the query to show up in this section. Lenders and other authorized organizations will also appear in this section as well.
The information that Equifax and Transunion provides is taken off of the credit reports in Canada eventually once it has been resolved. The time it takes for resolved credit infractions to come off the report depends mostly on the specific province or territory the debtor resides in. The length of time that passes before the infraction is removed from the report also depends on the type of information or delinquency that is under consideration. Many of the delinquencies can take three to six years or more depending on the particular situation. It’s usually best to contact the credit agencies or appropriate province directly in order to get the most accurate information about your specific credit report.