We’ve already explained why your credit score is important to lenders. In this article, we’ll be talking about your credit report (which is used to generate your score) and why lenders care about it too.
Your credit report provides an overview of your history with credit cards and loans, mortgages and lines of credit. And, you can get a version of it from the major credit reporting agencies, TransUnion® or Equifax®.
Depending on your goals, your credit report can hold answers to help you determine the next step in your financial journey. We explain the importance of reviewing your report below.
Preparing for life’s milestones.
Before browsing for a new car or applying for a loan, you likely already know how a budget could come in handy. Most lenders will look at your credit score and report when deciding to extend credit to you. They’ll look at things like your payment history, or whether you’ve ever exceeded your credit limit to get a sense of how responsible you are with your credit. Reviewing your report can give you more confidence about applying for that loan, or it might give you some clarity about what you need to do to help get approved for a loan in the future.
Detecting suspicious activity.
Errors on your report could also be a sign of suspicious activity. When reviewing it, look out for changes to your personal information or an inquiry by an unfamiliar lender. If you see something you don’t recognize, you can reach out to TransUnion or Equifax to have them investigate any concerns.
You may be able to order your credit report for free from the major credit reporting agencies in Canada. Please visit one of the websites above for more information.
Interested in applying for a Capital One credit card? Read this article before you apply.