When it comes to obtaining a mortgage loan, your credit report is a key piece of the puzzle that will be used to determine how much of a loan you can take out as well as what your interest rate will be. Therefore, it is important for you to have a solid understanding of what your credit report is as well as how it will impact your mortgage loan terms. To that end, here is a look at the type of information you can expect to see in your credit report as well as how to fix your report if it contains errors.
Identification Information
The first part of your credit report will simply contain the information necessary to identify who you are. This information includes:
- Name
- Social Insurance Numbers
- Date of Birth
- Current Address
- Previous Addresses
- Telephone Number
- Marital Status
- Current Employer
- Previous Employers
Credit Information
The next part of your credit report will include your credit information. This portion of the report will contain information about any bank loans, including car loans, mortgage loans and personal loans, as well as major credit cards and retail credit cards that you may have taken out. Information about these loans will include:
- Payment History
- Loan Balance
- Credit Card Balance
- Past Due Amounts
Banking Information
Your credit report will also include information about any bank accounts that you have open as well as how responsibly you handled those accounts. If you wrote any bad cheques or received notification for non-sufficient funds, this information will be included in your credit report.
Public Record Information
Your credit report will also contain public record information, which includes any information that is found in court records. Types of information that may be found in this section include:
- Collections
- Bankruptcies
- Financial Judgments
This section will also contain information regarding any inquiries that have been made into your credit history. Remember, every time you sign a loan or credit card application, you are giving the lender permission to access your credit report. If your credit report is accessed numerous times within a short period of time, it sends up a red flag that you are desperate for money. Therefore, you should be sure to use discretion when filling out loan and credit card applications.
Fixing Errors on Your Credit Report
If you find a mistake in any of the information contained in your credit report, it is essential to take steps to fix it. Even the seemingly smallest mistake could potentially cost you thousands of dollars due to an increased interest rate. You can obtain a copy of your credit report through one of the two credit-reporting agencies in Canada: TransUnion and Equifax. Remember, even if information is accurate, you also have the option to add a statement to explain your particular situation. Whether you are in the midst of a dispute with a financial institution or you were the victim of fraud, this statement can help the lender gain a better idea of what your credit history truly entails.
About the author: Tyler Tost is the Broker / Owner of Conexia Mortgage, a customer service orientated company with several Calgary Mortgage Brokers. Although Conexia Mortgage is located in Calgary, they can do a mortgage across Canada and will ensure you are getting the best Canadian Mortgage terms and rates available in the current marketplace.
