By Jasmin Brown

BDO Debt Solutions

The Basics of Credit Reports

Nov 1, 2022 | 10:15 AM

The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of Pattison Media and this site.

A credit report is essentially a snapshot of your credit history. Information regarding your credit history is maintained by the two major credit reporting agencies in Canada (Equifax and TransUnion), and begins at the time you make your first application for credit. Your credit report may then be used by certain third parties to make decisions about you, such as whether to:

· lend you money

· rent you an apartment

· give you insurance

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· grant you credit, or increase your credit

· give you a job

Lenders may become concerned if there are too many credit checks made on your credit report, as it could appear that you are urgently needing credit or living beyond your means. Inquiries due to an application for credit will impact your credit score, however, checking your own credit does not impact your credit score. You can check your credit score for free once a year by contacting the credit reporting agencies directly.

Information Included in a Credit Report

The credit reporting agencies get their information from banks, other financial institutions, courthouses, the Office of the Superintendent of Bankruptcy, etc. A credit report is made up of five different types of information.

1. Identifying Information – includes things like your name, date of birth, social insurance number, driver’s license number, address, telephone number, and your spouse’s name

2. Employment Information – includes your current and previous employers as well as your job title

3. Credit Information – includes your accounts, account balances, credit limits, credit histories, and whether any of your debts have been sent to collections

4. Public Record Information – includes information about bankruptcies, liens, or civil actions taken against you

5. Inquiries made – by creditors, lenders, landlords, insurers etc.

Errors or Suspicious Activity

It is recommended that you check your credit report at least annually and review for mistakes. You should also review for suspicious activity, because unfortunately, you could be a victim of identity theft. If you find inaccurate information on your credit report, you can file a dispute to correct any errors by reaching out directly to the credit reporting agency. It is recommended that you do so before meeting with your bank about borrowing money so that the errors do not impact your application.

If you are having trouble making ends meet each month, finding the right debt solution can help. Visit the BDO Debt Solutions website for more information about bankruptcy, or call 1 855 BDO DEBT to book a free, no obligation consultation.

Jasmin Brown is a Senior Vice President overseeing the insolvency practice in Saskatchewan. She is committed to providing creative and practical debt solutions with empathy, understanding and professionalism to help people overcome their financial difficulties.