Benefits of Obtaining your Credit Report
It's the beginning of the new year and what better way than starting off the new year than to fulfill one of my new year's obligations immediately. I just filled out my credit report request and have mailed it off.
Today I will talk about the benefits of obtaining one's credit score/report.
There are two major credit bureaus that will do this for you in Canada: TransUnion and Equifax. Provided that you fill out the correct form and provide two pieces of identification (the details are specified on their websites), you can obtain your credit report for free. Not that if you wish to receive your credit report online, there is a nominal fee for this service. If you're like me, and love a good deal, just submit your request through snail mail. It'll only cost you a postage stamp.
So what is a credit score and why does it matter?
Credit reports are important because of what's listed. If your credit score is really low, this could be the result of an unclean credit history. Low credit scores, unfortunately, could affect your ability to borrow from a bank or other company. Also obtaining a credit report will let you see what's listed and verify that everything looks okay. With all the incidences of identity theft, you need to make sure that your credit reputation is as good as you think it is.
Okay So I've got a Good Credit Score now what?
So you've submitted your application and just heard back from the credit bureau. A score of over 700 and a clean credit report will help you out in many ways. If you have a clean credit report, in the bank's eyes they view you as a low risk defaulter. As such, they will often offer you mortgages with more favourable interest rates. Lower interest rates of course means less money you'll be paying to the bank, so it clearly pays.
When I get my credit report back I will do a follow up post. As I always pay off my credit cards on time, and have only taken advantage of credit card arbitrage twice last year, my credit should be good. Hopefully there aren't any gremlins in there.
Today I will talk about the benefits of obtaining one's credit score/report.
There are two major credit bureaus that will do this for you in Canada: TransUnion and Equifax. Provided that you fill out the correct form and provide two pieces of identification (the details are specified on their websites), you can obtain your credit report for free. Not that if you wish to receive your credit report online, there is a nominal fee for this service. If you're like me, and love a good deal, just submit your request through snail mail. It'll only cost you a postage stamp.
So what is a credit score and why does it matter?
Credit reports are important because of what's listed. If your credit score is really low, this could be the result of an unclean credit history. Low credit scores, unfortunately, could affect your ability to borrow from a bank or other company. Also obtaining a credit report will let you see what's listed and verify that everything looks okay. With all the incidences of identity theft, you need to make sure that your credit reputation is as good as you think it is.
Okay So I've got a Good Credit Score now what?
So you've submitted your application and just heard back from the credit bureau. A score of over 700 and a clean credit report will help you out in many ways. If you have a clean credit report, in the bank's eyes they view you as a low risk defaulter. As such, they will often offer you mortgages with more favourable interest rates. Lower interest rates of course means less money you'll be paying to the bank, so it clearly pays.
When I get my credit report back I will do a follow up post. As I always pay off my credit cards on time, and have only taken advantage of credit card arbitrage twice last year, my credit should be good. Hopefully there aren't any gremlins in there.
Comments
You will not receive your "credit score" with your credit report.
If you want that 3 digit number, you have to pay for it. :-(
But your credit report is very useful to make sure your credit file is in order.