What you should know about your credit report

Nowadays, more and more people choose to apply for a credit when they want to buy a new home. The reality is that in today’s economy few people can afford not to make a credit when they need to buy a new house or apartment, but some of them are not aware of everything they need to have, to be eligible for a good credit. The credit report is one of the most important aspects in a person’s life. While the majority of people do not know exactly what it is useful for and what this report contains, a good mortgage broker in Ottawa can tell them everything they need to know. This report influences your credit rating, which in turn helps you obtain a credit from a financial institution. But what exactly does this report contain? It contains a list of all the consumer and mortgage debt of a person. The two main Canadian credit reporting agencies are Equifax and Trans Union and they receive all the information about your debts from all the creditors you deal with thought your life.

Every time a person borrows money, even from a credit card, that information is transmitted to these agencies and they will add it in your credit report. Furthermore, the creditor also reports other pieces of information to the agencies, such as your work history and even your address. Practically all your financial habits will be in that report and based on them you will receive a score that is usually between 300 and 900 points. Obviously, the higher the score, the better and you will have much higher chances of receiving a loan if your credit score is high. You can always apply for a copy of that credit report in case you want to assess your situation and, in case your score is lower than you would like, the good news is that it can change over time, as you make wiser financial decisions, so you could improve your situation in just a few years. Again, a good mortgage broker in Ottawa can offer you not only useful information, but also advice on how you can improve your credit score in order to become eligible for a mortgage loan in the future.

 

Even certain employers can be interested in your credit report to determine your financial character, but usually the main reason why any person should be concerned about it is when they need to purchase a home. Of course, if you have a positive debt history and your credit score is high, you have nothing to worry about and you can be sure you will receive a good loan as soon as possible. Mortgage broker can definitely help their clients achieve a more advantageous loan and improve their credit score. So if you are not sure about your credit report and you want to assess your situation, always look for a good broker. Every person needs to apply for a loan at one point or another and when you are in that situation, it is always best to be completely informed about your financial situation and the credit report is something that every person should take into consideration.