Your Credit Report details your credit history, and this is primarily what lenders (like Go Auto Outlet) look at when determining your eligibility and finance rate for a loan! For this reason alone, it’s a good idea to take a look at your report, but there are other reasons too, as you’re about to find out. Here’s what shows up on your Credit Report…
the SIGNIFICANCE of credit reports
A credit bureau is an agency that collects credit information on individuals and then sells this information to lenders, like banks, that offer loans. These lenders need to decide what kind of loans to offer people, so they reach out to credit bureaus for data. Part of this data are our borrowing and bill-paying habits, and this data is interpreted by lenders to determine our ability and reliability when it comes to repaying a loan.
The reports the credit bureaus generate are reviewed by lenders who then decide both how much of a loan you’ll be able to receive and how much the interest on that loan will be. A credit report will contain your credit rating, and typically, the lower that number is, the higher your interest rate will be. In short, your credit history is used to determine your credit future, at least with lenders.
Because of the importance of these reports, it’s a good idea to get in touch with a credit bureau to get a copy of yours. TransUnion and Equifax are the two in Canada.
Why Should I Pull my report?
Occasionally, a credit report will contain errors. You can dispute these errors with the credit bureau, which could end up significantly improving your credit rating.
Speaking of your credit rating, you can request this along with your credit report. You can do so through your bank or credit union for a small fee. We recommend doing this because a lender will eventually pull your report anyway, and requesting and bringing it yourself to a lender will show a little initiative and that you’re prepared to discuss a loan. Your credit report and rating will also give you an idea of what financial problems and opportunities you’ll want to discuss with the lender. Go into that conversation prepared!
The credit rating itself is a number between 300 and 900, with 680 generally being considered on the low end. This number is primarily what lenders look at when evaluating your creditworthiness, so if this number is low for you, then consider discussing this with your bank and rebuilding your credit before you apply for a loan.
What will be on my report?
Your Credit Report is accessible to you anytime and for free, but there’s a negligible fee involved when you request it with your Credit Score. Your Credit Report will indicate a couple things to you. Here’s what shows up on your Credit Report:
- A record of employers which have pulled your Credit Report before
- Your payment history for any accounts that were reported to Credit Bureaus
- Any info that’s on the Public Record, such as collections, bankruptcies, etc.
- Your Credit Score, if you requested it
Interpreting Your Credit report
The different accounts on your Credit Report will have different Ratings reflecting your payment history and status. This Rating will be between 0 and 9, with:
- The number 0 meaning no recent activity
- 1 meaning the account is PAID AS AGREED AND UP TO DATE, which is the best rating
- And 2-9 meaning various issues with the account (Go Auto Outlet can help you determine these!)
what shows up on your Credit Report – Simple as that
You can contact TransUnion or Equifax directly yourself, or if you’ve got other financial questions, just go to your trusted bank or credit union and have them request your report. Go Auto Outlet can do this for you as well! And once you’ve got a copy of your credit report in your hands along with your credit rating, you can apply for a loan with us!