Controlling your credit rating
Beware of companies offering to fix your credit rating for a fee. In most cases, the fixes are easy and can be performed by you.
Whether you're applying for a mortgage, or any other type of loan, a lender will need access to your credit file. Your credit file is essentially a report that shows how well you handle credit. It contains a listing of everything you owe, including credit cards that have no outstanding balance. It also shows a lender if you consistently pay your bills on time, or if you have any outstanding collections or bankruptcies. In this article from Moneysense, Gail Vaz-Oxlade cautions that although there are companies that will offer to fix your credit for free, it is often just as simple to fix it yourself.
It is recommended to check your personal credit file every six months to ensure the information is correct and up to date. Acquiring a copy of your credit file is as easy as going online to one of the major Canadian credit bureaus: Equifax Canada Inc. or TransUnion of Canada Inc. Both companies will mail you a copy of your report to review at no charge. If there is any incorrect information, correcting the file is as simple as providing the company with proof.
In the case that a credit file is less than perfect because of outstanding collections, late payments or bankruptcy, the only thing that will fix your file is time. For more tips on controlling your credit rating, talk to an Ottawa Mortgage Broker.