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Tuesday, 6 November 2012

You and your credit score

When going through the mortgage application process, your lender will need to access your credit file. Your credit file contains a history of what you owe, including credit cards with no outstanding balance. This report is one of the ways a lender will assess if you are a favourable candidate to lend to. So what if an application is denied, citing the applicant's credit report as the reason? In this article, Gail Vaz-Oxlade talks about companies who will offer to fix a less than stellar credit score for a fee, and how more often than not, these are fixes you can do yourself.

It is recommended to check your own credit file every six months to ensure the information contained is correct. You can request a copy of your personal file to be mailed to you at no charge by contacting one of the main credit reporting firms in Canada: Equifax Canada Inc. or Trans Union of Canada Inc. If your file contains erroneous information, simply contact the reporting firm, show proof of the error, and your report will be repaired.

In a case that a credit report is damaged because of late or missed payments, higher than normal balances or financial hardships such as bankruptcy, the only thing that will fix it is time. Paying bills promptly and managing credit wisely over time will repair a damaged credit report. For more hints on controlling your credit rating, talk to a qualified Mortgage Broker.

Click here for the full article from Moneysense.

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