User Guide
What’s Up With My Credit?
Everything You Need to Know about Credit Reports and Credit Scores
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What you’ll Your credit find inside: matters. Understanding Your Credit Report 3 What is a credit report? 3 Why is it important? 3 Here’s why. What information does 4 my credit report include? Get control and 4 A good credit score makes all the defend against fraud diference when you go to buy a home, How long does information 5 finance your education, or apply for a stay on my credit report? loan or a credit card. The higher your score, What should I do if there’s an 5 error on my credit report? the easier it is ― and the less it costs ― to borrow money. It’s that simple. Credit Scores: Your Questions Answered 7 What is a credit score? 7 Your credit score is based on information Why is my credit score important? 7 contained in your credit report. They’re What afects my credit score? 7 diferent, but both play a role in the way Who determines my credit score? 7 lenders see you. What’s a good credit score? 8 Where can I find my credit score? 9 This guide will answer all your questions How is my credit score calculated? 10 about your credit score and report, and how they afect your financial success How do lenders look at Equifax 11 Risk Score (ERS) 2.0? throughout your life. ID Assist can help. 12 Here’s how it works. Poor Credit? 6 Easy Ways 13 to Boost Your Credit Score
Credit Report & Score User Guide Understanding What information does Your Credit Report my credit report include?
What is a Why is it Personal details Credit check details These include your name, date When lenders run inquiries on your credit report? important? of birth, current address, social credit history, it shows up on your insurance number, and the date your report. Make sure you recognize Your credit report contains information When you apply for a credit card or a file was created. these inquiries, because an about your financial history, along loan, lenders look at credit reports (as unauthorized credit check could with personal data such as current and well as other information) to decide how be a sign of identity fraud. previous addresses and employers. much they’re willing to lend to you, and Financial accounts It lists your financial accounts and at what rate. Your credit report will tell Included here are things like credit payment history from things like student them whether you’ve repaid your loans cards and lines of credit; car loans, Collections and loans, car loans, mortgages, home equity on time and how much you currently mortgages, or student loans; and bankruptcy mobile phone accounts or utility bills. lines of credit, unsecured lines of credit, owe, along with other details about your If you’ve declared bankruptcy or your credit cards and utility bills. It does not credit history. account has been sent to a collection typically include your credit score. agency, it will show up here. This is a big red flag for lenders.
Get control and defend against fraud ID Assist is an identity and credit monitoring U SER 00 7 solution. It’s an early warning system that alerts subscribers to signs of fraud, so they can limit the fallout of identity thef and financial crime and restore their identity if it’s been stolen. Start a free 30-day trial at www.idassist.com
3 Credit Report & Score User Guide | 4 How long does What should I information stay do if there’s an on my credit error on my report? credit report? Your credit report information can date Given that credit information can stay back six or seven years. It varies from on your profile for up to seven years, province to province and according to be sure to check for mistakes. the situation. To correct errors, you can fill out and Have you declared bankruptcy? submit a “Consumer Credit Report Expect to see it on your credit report Update Form” to Equifax or TransUnion for 7 years. online. They’ll compare your input with their own documentation and may Do you have secured loans, such contact you to settle any concerns. as mortgages and car financing (including leases)? These will appear for up to 6 years afer they’re closed out.
Had an account sent to debt collectors? These incidents can appear on your report for up to Need to correct 6 years from the time the debt is assigned to collections. an error now? Access the TransUnion update form Been part of a legal judgment (for example, a lawsuit or dispute that OR results in a financial obligation)? You’ll likely see this on your report Access the Equifax update form for up to 6 years.
5 Credit Report & Score User Guide | 6 What’s a good Credit Scores: Your credit score? % Equifax Risk Score (ERS) 2.0 predicts the likelihood of a consumer Questions Answered going 90+ days delinquent within 12 months. It's the standard used by many lenders today. Scores57 range between 300 and 900. While each lender has its own criteria for ranking borrowers, generally speaking, anything above 660 is good. What is a What afects my credit score? credit score? Compare your credit score with the rest of of the population here: A credit score is not the same as a credit Your credit score is based on information report. Your credit score is a three-digit gathered from financial institutions (and other number that summarizes your credit organizations) that have lent you money or 300 740 900 profile (or ‘creditworthiness’) based on the extended you credit in the past. It’s afected by information in your credit report. Lenders use how long you’ve had credit, how ofen you’ve credit scores to determine how much money applied for it, how much you’re using, and how Lowest Midpoint Highest they’ll extend you for a home or car loan, quickly and reliably you pay it back. whether you qualify for a student loan or how 50% of the population 50% of the population much your insurance will cost. Who determines Why is my credit my credit score? score important? Equifax and TransUnion are independent companies that collect credit information and Quite simply, the higher your score, the easier payment history from your financial institutions, it is to borrow money. With a high score, phone and utility companies. Using this you’re more likely to be approved for a loan, information, they run complex calculations to % qualify for better interest rates, and even produce credit scores. Lenders tend to use one receive special credit ofers. A good credit company or the other when they run checks on score can help you obtain a mortgage, buy a your credit. 57 new vehicle, or start a business. of Canadians have an excellent credit score. How does yours match up? Get access to your score by signing up for a free 30-day trial of ID Assist.
7 Credit Report & Score User Guide | 8 Where can I find How is my credit my credit score? score calculated? You can purchase your credit score from either of Canada’s Several factors from your credit report combine to impact two credit bureaus: Equifax and TransUnion. Or, you can take your credit score. Most of them are within your control. advantage of ID Assist’s 30-day free credit score ofer.
1 Your payment patterns: Do you make your payments on time? 10% Credit Inquiries
2 The length of the story: Have you 10% Credit Mix been out of the country for several years? Are you a new borrower? Creditors like as long a view of your 15% Credit History credit past as possible.
3 How much you use of what’s available: Do you run high 30% Credit Utilization balances? Have you maxed out your cards or lines of credit?
4 Trouble in the past: Have you declared bankruptcy? It can create issues for up to seven years. 35% Payment History
5 Intent to borrow: Are you ofen
seeking new loans or credit cards? Lenders can take this as a sign you’re overextended.
Unlike other services, ID Assist credit monitoring can alert you when lenders run a check using Equifax OR TransUnion. So you’ll find out either way when someone’s interested in your credit. If it’s suspicious, ID Assist experts are ready to help you take corrective action.
9 Credit Report & Score User Guide | 10 How lenders tend to look ID Assist can help. Access at Equifax Risk Score 2.0 your report and score credit scores PLUS monitor your Experts recommend regular checkups on your credit report and personal information. credit score so you can keep track of your accounts, protect yourself from any fraudulent activity and spot errors. Here’s how it works:
1 ID Assist subscribers decide exactly what they want monitored: email addresses, credit card details, Social Insurance Number and a lot more.
% 2 ID Assist scans the dark corners of the internet.
15 3 of Canadians have a Subscribers are alerted to anything suspicious, % GOOD credit score % so they can limit the damage. 10 14 4 And if they are a victim, ID Assist restoration of Canadians have a FAIR of Canadians have a VERY services will help set things right. If required, credit score GOOD credit score lawyers are ready to assist as well, at no extra cost. 4% 57% of Canadians have a of Canadians have a POOR credit score EXCELLENT credit score
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11 Credit Report & Score User Guide | 12 Poor Credit? 6 Easy Ways to Boost Your Credit Score
While there’s no quick fix for a less-than-stellar credit history, there are steps you can take to improve your creditworthiness. 4. Apply only for the credit you need, 1. Pay your bills on time. when you need it. Even one late payment could afect your credit score. Keep Too many inquiries in a short period of time can result in a short-term your accounts in good standing. Avoid frequent late payments decrease in score. Don’t worry about shopping for the best mortgage by setting up automatic payments or reminders. Pay of the rates. Credit bureaus understand why. And ID or credit monitoring minimum amount owing at the very least ― more, if possible. from ID Assist will not negatively impact your score, either.
2. Keep your balance well 5. Establish a below your credit limit. credit history. For example, if the total balance you owe is $5,000 and The longer you’ve had active credit accounts, your total credit available is $10,000, then your credit the better. Some lenders require at least twelve utilization is 50%. Generally, the highest credit scores have months of credit history. under 30% utilization.
6. Maintain a good 3. Reduce your debt. mix of credit. Pay down whatever you can and eliminate unnecessary sources of debt (like having a credit card at each of your Having diferent types of credit can contribute to the favorite department stores). health of your overall score. For example, a mortgage is seen as lower-risk loan than credit card debt.
13 Credit Report & Score User Guide | 14 User Guide
Be Proactive About Your Personal Information
In a digital age, we have to be more vigilant than ever when it comes to protecting our personal information. Keeping a close eye on your credit is just one way to identify potential problems before they can cause any serious loss or damage.
What if you had an early warning system that alerted you to suspicious activity on your accounts? And what if you had help from experts to restore your identity if thieves did steal your personal information?
ID Assist scans the internet and the dark web to find out where your personal details may be exposed. It can even pull in data from both Canadian credit bureaus.
Take charge of your financial wellbeing. Get Your Credit Join the 500,000+ Canadians who trust ID Assist Report FREE technology to help defend against fraud. TM Sign up for the ID AssistTM 30-day free credit with ID Assist score ofer. It’s easy, safe and secure ― and you can cancel at any time. Visit www.idassist.com to choose the plan that suits you best.
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