Obtaining and checking your credit report is important for many reasons. It allows you to view the information that is available to a potential lender and to address any errors with the lender or otherwise with the credit bureau. Reviewing your report also enables you to analyze where things may have gone wrong in your history so you can work to repair it.
In reviewing your report, you may find that your credit was harmed by several things that added up, such as accepting new credit cards that came in the mail or those offered at the retail stores for extra promotions. Changing your mortgage and banking to another financial institution also hurts your credit because it entails opening new accounts and your history does not carry over to the new bank. In looking at your report, you may see one or more late payments. This can easily happen when bills are due on various dates and payments are sent by mail.
Sometimes, your credit can be damaged by having co-signed a loan for someone who defaulted or having a joint account with a partner who spends and doesn’t pay the bill. Failing to pay child support or amounts ordered by the court can also hurt your credit rating once the credit agency becomes aware of these.
Understanding how credit information is used and how credit risk is determined can help you in your debt management and overall financial planning. For more information contact us at AC Waring & Associates Inc. We offer credit counselling and debt solutions tailored to your situation. Call or drop in to our Edmonton office
for help today. 780-424-9944 or 1-800-463-3328 Alberta Region