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How your credit score affects your life

Learn about the importance of credit checks in Canada
iCASH Okotoks
Male looking at his credit score test on tablet computer showing excellent score

Do you know what’s included in your credit report?

It’s essential to learn more about credit reporting so you know how it affects your life and you can ensure you’re on the right financial path.

Your credit report is a record of your past and ongoing debts, and creditors use it to assess your repayment abilities when you apply for any form of financing in Canada.

When an institution or individual needs to evaluate your personal finances for an application, such as a credit card, a loan, or a mortgage, they will check your credit report.

Why it’s important to check your credit report

It’s important to pay attention to your report with quarterly credit checks to maintain and even improve your creditworthiness. Having a good credit score comes with a wealth of benefits:

  • Reduced interest rates
  • Credit cards and loans
  • Higher borrowing capacity
  • No collateral requirements
  • Better insurance rates

Your report provides a breakdown of your overall credit status as well as your repayment history, the types of credit you have, use of available credit lines, all of which will help with the first step towards having a good credit score.

You can check your credit report by requesting a copy from agencies like TransUnion and Equifax, Canada’s two main credit bureaus.

What’s in your credit report?

Your credit report includes your personal details, such as name, date of birth, social insurance number and more. It will also have your employer name if you’ve ever provided it to a Canadian lender, as well as your current and previous addresses.

It will outline your account payment history for credit accounts such as credit cards, mortgage loans, car loans, etc., and include any missed payments or unpaid bills. It also notes how many companies or lenders have requested access to your credit report in the past two years.

One of the details that will not be included in your credit file is your credit score, even though your report impacts your score. Instead, you have to make a separate request for your credit rating number.

Checking your credit file regularly can help prevent fraud or identity theft. Look for accounts with companies or debts and transactions you don’t recognize. If you find any, dispute the information immediately and request a credit freeze.

Many Canadians can still get a cash advance even if they have a bad credit score. Private lenders such as iCASH offer quick access to funds, no matter your credit rating.

To learn more about credit reporting or to qualify for a fast, easy and secure quick loan online today at iCASH.ca.