How to Get Your Credit Report and Credit Score in Canada
UNDERSTAND WHY YOUR CREDIT REPORT IS IMPORTANT.
The purpose of the credit report is to establish a credit score and rating which potential lenders use to help them decide if you are creditworthy. In other words, should they give you credit and how much? The credit report will also help determine what your interest rate will be.
It’s not just lenders that look at your credit report. Sometimes potential employers and landlords will look at it, with your permission of course.
A credit report contains the details of your credit history. The report is provided by an independent third-party (a credit bureau or credit reporting agency) to potential lenders. The credit bureaus store and maintain information about your payment history, types of credit and amounts of credit among other things. Lenders report to the credit bureaus usually on a monthly basis.
If you don’t have a credit history, establishing credit can be frustrating. For example, to get approved for credit, lenders want to see your credit history and credit score. If you don’t have any credit history, they don’t want to give you any credit!
This step is important to do before applying for any new credit (credit cards, loans, mortgages, etc.) especially if you are concerned that you have a poor credit rating or credit score (which will prevent you from getting approved). Simply applying for credit will have a negative impact on your credit report credit score, so you'll want to be sure that you'll qualify before actually applying for any new credit. It is better to know ahead of time that you meet the lenders credit score minimum requirements.
TIP! Even if you think have a good credit score it’s always a good idea to check your credit score and credit report before applying for any new credit. You can detect any problems or errors on your credit report and get them fixed and avoid being denied credit due to an error, which will also negatively affect your credit score.
If you don't need your Credit Score, you can request a copy of your Credit Reports from each of the credit bureaus, Equifax and TransUnion, by mail and free of charge. You will be required to complete an application and provide copies of 2 pieces of identification. The report can take 2 to 3 weeks to receive. You can’t get your credit score in the mail, you must request it online.
MONITOR YOUR CREDIT.
You should check your credit report at least once a year. If you are trying to repair your credit, you should be checking your credit report every three months. Monitoring your credit helps you detect problems or errors that can be corrected before being denied credit (as this activity will affect your credit score). At the very least, be proactive - make sure you check your credit report and credit score before applying for a new credit card or loan.
