Understanding your financial situation is for consumers all over the world. This is no different for Canadians, who enjoy a lifestyle that doesn’t saddle them with medical debt. The two major Canadian credit bureaus that track credit history are Equifax Canada and TransUnion. These two agencies are primarily responsible for ensuring that the accuracy of the information that gets reported to them about debtors by creditors. These credit bureaus keep track of your credit files as a reference to compute your 1 time credit score. These details are used as a profile in assessing your ability to repay your loan. Banks and money lenders use these credit bureaus in checking whether you have the ability to repay your debt. The risk here is that if you happen to have a bad credit report result, chances of your credit approval is low, or if not, your credit has a high interest rate to counterbalance their risk.
How is the data obtained? There are certain companies who are responsible for compiling credit data. This includes principle balances and repayment history for any loan, credit card, mortgage or any form of credit. The two major Canadian credit bureaus work with banks and money lenders to obtain your financial data. They have certain formulas that give clear evidence of whether to trust you or not with your loan application. Banks and lenders purchase these data whenever you apply for any form of credit so as to determine your credit credibility. Credit agencies are not just helpful to banks and money lenders on their deciding process; rather it is also beneficial in your part to be responsible enough in repaying your debts and will prevent bad records that might put your credibility at stake.
In addition to financial entities, any Canadian citizen or resident with a valid credit file is entitled to have instant access upon making a request in the proper manner stipulated by the credit bureaus. You can also purchase credit monitoring services from these credit bureaus and have free access to your own credit score and history for your own reference.
Doing this at regular intervals will help you in staying up-to-date about your payment history, debts and credit score. You could also anticipate what sort of interest rates will be given to you by the bank. If you start to consistently take note of your credit standing, you can make smarter decisions on your debt and build your scores up gradually.