How To Review Your Credit Score
You must understand the facts regarding your credit ratings and how significant is your credit score. Your credit score is a number that is rated from 300 to 900. Besides, some factors affect your credit score which you should also consider. Moreover, it is important to know how to check it and understand it much deeper.
Why Credit Score Is Important?
By looking at your credit score, lenders or creditors will convey a conclusion about you. This is the significance of your credit score. It is a measure of your creditworthiness. It justifies your capacity to obtain loans. Also, a good credit score allows you to enjoy several advantages. For example, if your credit score is great, you won’t have any concerns getting a mortgage with favored conditions and terms with the privilege of getting low-interest rates. Thus, it is very important to maintain an high credit score.
What is Credit Rating
Obtaining your credit rating with your credit score will depend on the reporting agency that you’re working with. Your credit rating will scale each of your loans from 1 to 9. The lower rating you get on your credit the more it implies how qualified you are to obtain new debt. However, a credit rating of 9, will convey that you’re currently, or have been in a debt management plan.
Moreover, your credit rating is composed of a letter and a number.
An “I” implies for installment credit such as your car loan. This is when you owe money for a contracted time, and you are required to pay it in set amount regularly until it’s paid in full
An “O” implies for Open status credit which is a line of credit. For example, obtaining money at times when you necessitate funds up till your limit.
An “R” implies a revolving credit which is most rampant. It can be your credit card. This refers to borrowing regularly for a specific limit and funding it in variable costs depending on the amount you still owe.
An “M” implies a Mortgage loan that concerns to obtaining a home loan.
Why You Must Check Your Credit Report
If you’re too confident as you pay your bills on time, you might find no reason to check your credit report. Well, I suggest you should. In fact, one study produced by the Public Interest Advocacy Centre implies that 18% of consumers find errors in their credit reports. An error would entail less capacity to borrow and higher interest rates. Besides, it can also warn you about potential identity theft. These errors can take up most of your time as you correct it; hence, the sooner you’re able to check it, the easier it is to correct.
How To Know Your Credit Score
In Canada, Equifax and Transunion are termed as the known credit reporting agencies. These two agencies keep track of your credit. In requesting your credit report to confirm its accuracy, you can obtain it for free via e-mail. It can give you the result longer than the immediate version and will not give you your credit score.
Your credit report will contain your current and past credit cards, loans, and other histories of payments and debt. Should you wish to get your credit score, you are to pay for it, and the result will be immediately delivered online. Though these two sites may be tricky in finding for free options to obtain the information you need regarding your credit, you just have to check the difference and choose which one suits your needs. If you want to get the paid version, it can cost you $25, which is not necessarily much for you to obtain information regarding your credit.
What To Do If There are Errors
If you find any inaccurate information in your credit report or any errors, read and learn from our later articles on how to repair it and also check out the ways on how to improve your credit score.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.