Your credit report
Why my credit score is so important?
A credit report in your name begins the moment you make a credit request (loan, credit card, department store card etc). These institutions provide to the credit evaluation agency (Equifax, TransUnion) reports on your payment history and credit worthiness. They make reports if you miss a payment; make a late payment or surpass your limit. All of these infractions negatively affect your score.
Managing your finances in a responsible and informed way will enable you to save a lot of money! How? Simply, banks and other financial institutions such as insurance companies, refer to your credit score while assessing the risks related to providing you with a loan or insurance. If your credit portfolio is solid and contains no infractions you stand to benefit from potential rate reductions and will obtain your loans more easily. Moreover, you will qualify for the best interest rates available on the market.
Also, be careful about making too many credit requests since this can lower your score as well. One advantage of working with Multi-Prêts is that we only make one request and can send it to any bank. Going to each bank yourself will require that each lender make their own credit request on your behalf. This can lower your credit score.
What is a solvability quote?
The credit score, also knows as a ‘‘Beacon score’’ is represented by a number that ranges from 300 to 900. Every person who has a form of active credit (personal loan, credit card, line of credit etc) automatically has a credit score. To make sure your profile is up to date, institutions use various codes: An R1 Score means that you pay within the allotted 30 days and are not late. An R9 indicates that you have a source of credit that has entered into collection; this signifies the worst type of infraction. Credit reports also contain information relating to bankruptcies or legal judgments. Information contained on this report remains active for 2 to 7 years (depending on the type of information).
How to find out your Beacon score?
It is recommended to ask for your credit report at least once a year either with Equifax or TransUnion. This will allow you to fix any potential errors and, more importantly, avoid potential fraud.
Important to Know :
If you make a credit request via Equifax or TransUnion, the credit score indicated is not based on the same criteria as when it is a financial institution that requests the report. The score given to banks and financial institutions is much more severe than the one given to the general public, and can vary by as much as 50 points.
