Your Credit Profile

When you apply for a loan or mortgage, the first place a lender goes to check you out is the credit bureau to determine your credit profile. Credit bureaus are private companies. Their business is the collection of financial data regarding the credit habits and history of consumers and businesses.

Lenders often refer to the credit bureau's report as your credit rating. With their vast database and statistical rating system, your credit rating can be summed up in one number, known as the credit score. In addition, some lenders, have incorporated the credit bureau's score into their own statistical rating system to determine the lender's own unique score. All this analysis is done instantaneously and allows the lender to better manage their credit risk. If your score exceeds a set number, determined by the lender, your loan is approved; if you score less than the set number, your loan will likely be rejected.

Develop a positive credit profile

The better you understand what statistics or categories are behind your score, and the more you qualify under, the easier it will be for you to get credit. To develop a positive credit profile, qualify yourself in as many categories as you can based on the list below.

The Major Categories of a Positive Credit Profile In order of Importance:

• A positive up-to-date credit report
• A home with a mortgage
• The age of your credit history
• A job you have held for a year or more
• A current or paid-off bank loan
• A major credit card
• A department store credit card
• A telephone in your name

In addition, other factors influencing your credit profile which you may or may not have control over include:

• The amount of debt you have relative to your income
• Your net worth
• Your age
• You have a chequing and or savings account (chequing & saving accounts do not report to the credit bureau. However derogatory banking information may report.)
• Length of time at current and previous residence
• The number of credit cards you own
• The number of times you applied for credit in the last 6 months

Always remember, a positive up-to-date credit file, listed above as the number one influence on your credit profile, is your responsibility, not that of the credit bureaus. Furthermore, it is something you create, not something that happens automatically.

Strategies for controlling your credit bureau file:

Check your credit bureau file once a year: Your credit report is prepared for you in easy to understand language, without all the jargon and rating codes only a lender would understand. If you need help interpreting your report, our exclusive network of mortgage brokers are standing by to assist you.

Have the credit bureau re-verify and correct any incorrect personal and credit data: The credit bureau has an obligation to use its best efforts to check and correct the file.

Have all missing positive credit data added to your file: Supply the credit bureau in writing with a list of all credit cards, loans, and mortgages, you have kept current, if they are missing from your credit file.

Add your story to the file: You have the legal right to add your side of the story to your credit file; that is, why your payments were late, or that credit data is incorrect and is being re-verified.

Have the credit bureau remove any derogatory information outside the statutory limits: You have the right by law to a credit file that does not contain data older than the statutory limits.

Want to know more about your credit?

MortgageResource.ca has partnered with TransUnion of Canada to give you quick access to all the credit information and resources you need.

Your Credit Profile An easy-to-read version of similar information about your credit history that would be supplied to a creditor. With your credit profile, you have the option to add your credit score, debt analysis and alerts to monitor critical changes.
Consumer Disclosure A complete account of all the information on your credit report. This version is only available to you and it contains additional data that are not provided in a Credit Profile.
Credit Disputes TransUnion is obligated to verify the accuracy of information on a credit report that you dispute. If you do not recognize information on your credit report, or believe an item may be inaccurate, you may request an investigation. You can file your dispute online with TransUnion. It couldn't be any easier.
Fraud and Identity Theft Learn how TransUnion can help you if you are a victim of fraud or read tips on how to avoid becoming a victim of fraud.