How to Get Your Credit Report in Ontario and Why You Should

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How to Get Your Credit Report in Ontario and Why You Should

Posted on October 13, 2022

Do you know your TransUnion and/or Equifax credit score right now? If you don’t, you could find yourself in a world of hurt the next time you need to apply to rent an apartment, apply for a high-level job or buy a car. We're going to show you how to get your credit report in Ontario and use it to your advantage.

 

While most Canadians consider it taboo to discuss money, money, and specifically credit, is something that we all rely on to get by.

 

If you are renting an apartment, there is a good chance the landlord has a mortgage on that property; that landlord needed a good enough credit score to get approved for the mortgage in the first place.

 

Just about every car on the road in Canada that is less than five years old was financed; as you can see, credit is really important.

 

 

This is why we are going to cover how to get your credit report, why it's so important, and what steps you need to take in order to raise your credit score.

 

What goes into a credit report?

 

• Payment History is generally considered the most important aspect of your credit score.  Paying your bills in full and on time is vital to proving you’re responsible.  Since it’s so significant to the calculation, late payments can have a huge impact.

• Utilization Rate is the amount of revolving credit you’re actually using compared to what you have available.  When you keep your spending below 30-35% of your limit, it’s a positive sign for lenders.

• The amount owing, encompassing all forms of credit in your name, factors into your credit score as well.  Whenever possible it’s always best to pay off the full balance every month.  If that’s no possible given the amount you owe, it can reflect negatively.

• Age of Credit refers to how long you’ve been managing specific credit facilities.  Holding the same credit card for years and consistently paying it off show potential new lenders you can be trusted with more debt.
• Your credit mix is the variety of credit account types, including student loans, mortgages, and credit cards you hold.  While it may seem like having multiple lines of credit at once would be bad for your credit score, being ab

 

Paid Vs. Free Access

 

The first thing we need to look at is whether you need to sign up for paid access to your credit report/score or will the free solution meet your needs.

 

For the vast majority of Canadians, you should be able to get by with the free access being offered by TransUnion and Equifax.

 

 

These companies generate revenue by offering a premium service that includes identity theft detection.

 

The majority of the income these companies make is from their commercial clients who pay to run credit reports on their customers.

 

Another way to get access to your credit report/score via 3rd party service providers would be to sign up with Koho and Credit Karma; these companies pull your free credit report from Equifax and TransUnion, respectively.

 

How often should you look at it?

 

It’s not a bad idea to check your credit score once a year.  That way you can be sure there’s no fraudulent activity taking place on any of your accounts.

 

If you’re in the process of improving your credit score, checking regularly is good to see how your efforts are paying off.

 

How to Address Errors Inside Your Credit Report

 

There could be errors inside your credit report; these errors will have a negative impact on your credit score and could prevent you from getting approved for a car loan/mortgage/any other big-ticket purchase.

 

 

The credit reporting agencies are obliged to remove these errors, but you need to inform the agency via its dispute process; this step could take 1-2 months before everything is settled, so you cannot afford to wait.

 

Something to remember is that these items can stay on your credit report for up to seven years, so this issue will not go away by itself.

 

The best way to raise your credit score

 

You can do a few things to raise your credit score quickly. Start by reducing the total amount of debt you are carrying. Interest rates are rising, so you need to do everything in your power to reduce the amount of debt you are servicing.

 

Along with reducing the amount of debt you are carrying, sign up for pre-authorized payments; this way, you will never miss another payment.

 

Missed payments are the leading cause of poor credit scores in Canada.

 

If you need help or advice on anything to do with auto loans or getting your credit report in Ontario, contact Car Nation Canada today, we can help!