Having your 3-in-1 credit report copy is the first thing that needs to be done to avoid credit problem repair. It eliminates the risk that lenders consider when you apply for a loan, credit, or even planning to make a major purchase.
Understanding the Credit Report Through Credit Scores
Generally, the three-digit score will affect most of your financial decision-making. Thus, understanding the report will help you avoid the need for credit problem repair.
The higher the score, the lesser the credit risk, and the more likely the lenders will approve any loan applications.
It is essential to understand the factors that impact your credit scores:
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Making Payments On Time
This may seem too simple, but making payments on time will require personal commitment. Since this is the most vital factor, your score will increase, and upholding this behaviour will go a long way. This will also show how likely you are to meet your financial obligations.
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Maintaining an Account
Credit account includes auto loan, credit card loan in installment and mortgage. Even though these are different types, don’t mix up and only keep the loan you can pay until the end of the term.
Interest rates as well add up to the score in the credit report. Do not open too many accounts just to belong in society. Be financially wise and able.
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Age of Credit Accounts
Lenders will also consider the duration of a credit account’s existence. If the credit age is old, you have been able to handle credit accounts over time. Credit accounts with a long history over the newer ones will positively impact the score.
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Percentage of Due Balance over Credit Limit
Having a high credit limit is a show-off. However, having a low due to this credit limit will make you a “boss”. Lenders prefer to see a lower debt-to-credit ratio (lower risk), meaning if you are most likely to reach your limit, it will negatively impact your score as too much debt.
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Any Litigation Pending Against the Credit Bureau
This information applies only to those with a previous history of financial hardship and inconsistencies. This will negatively impact you once you apply for bankruptcy and foreclosure.
Learning to Determine Credit Score
Below is the almost-exact picture of how your credit score is computed:
- Payment history 35%
- How much do you owe 30%
- Length of credit history 15%
- Type of credit 10%
- New credit (inquiries) 10%
Benefits of a Credit Report
In fact, lenders use credit reports to judge an applicant’s creditworthiness. It does not take long for a person to access your information and begin opening accounts in your name.
Thus, understanding the importance of obtaining a copy of your free personal credit report is beneficial for it:
- Keeps you informed of your credit standing.
- It is essential to improve your credit rating.
- Protects yourself against identity theft.
- Prevents damaging your credit in the long run, which may result in credit problem repair.
For this matter, consumers are advised to obtain a 3-in-1 credit report every six months.
Get Your Credit Report Without A Pay
Most Canadian lenders use the FICO score (a.k.a Beacon score). FICO, a U.S. company, sells its score to credit-reporting agencies in Canada (Equifax and TransUnion), wherein they give you free credit reports.
Each credit-reporting agency may provide different information on how you may have used your past credit transactions. However, this does not affect your credit score.
Important note,
- “Credit File Disclosure” is the term used by Equifax Canada for a credit report while;
- “Consumer Disclosure” is the credit report referred to by TransUnion Canada.
How to Get a Copy of Your Credit Report
Obtaining a copy of your credit report is simple.
Furthermore, because reports are viewable online, it is safe and possible to get yours every 6 months.
These are the three ways to get a copy of your credit report:
By Fax or Mail
- You can request through writing using the forms TransUnion and Equifax provided.
- Present two copies of personal identification, such as a passport, driver’s license or any valid IDs.
Through Telephone
- Contact the corresponding credit bureau from which you would like your credit report.
- For Equifax Canada (Dial: 1-800-465-7166)
- For TransUnion Canada (Tel Nos.: 1-800-663-9980 (except Quebec) /
1-877-713-3393 (Quebec residents)
- Answer any personal and financial questions to verify identity.
- Provide your credit card number or social insurance number if required.
Through Online
You may also obtain a copy of your credit report online. Though it will cost you a fee, you can check your credit report right away on the other hand.
What is a 3-in-1 Credit Report?
A 3-in-1 credit report is also referred to as a triple-bureau credit report. The “3” refers to the top credit-reporting agencies, namely Equifax, TransUnion, and Experian. Each of them may basically provide a piece of crucial information on its report, which may not be present in the other credit bureaus.
Since it is not known which credit report an institution may use to assess your credit standing, ensuring that each report must be accurate and updated is critical.
Thus, being able to see all the information in one credit report from all of the three credit bureaus is beneficial.
Why Each Credit Report May Not Be Identical?
The fact is that each credit bureau may have a minor difference in the credit report file they have for you. This is normal because all credit information received from their sources may not be identical, and the methods of collecting credit information may vary slightly.
However, the difference between each report is usually minor. If inaccuracies are present, contact the bureau and discuss to clarify the matter. Because it may negatively impact your creditworthiness.
Why Obtain Copies of a 3-in-1 Credit Report?
If you hope to improve your credit rating, obtaining a specific 3-in-1 credit report should be the first step. This way, you may:
- Get the idea of what factor needs improving and you can plan based on this
- Know what to anticipate precisely, such as your possible credit limit and interest rates.
At the end of the day, it is just you who will handle your finances. If you need any help, credit repair experts are waiting for you to contact.
How Can Credit Repair Experts Help You?
Once you have a copy of your credit report, you can assess and answer the question, “Where do I stand?” In cases where doubt is present, credit repair experts are willing to serve if your score needs to be improved. Credit repair experts offer services to increase the credit rating and decrease the risk.
Final Thoughts
In conclusion, getting a copy of your 3-in-1 credit report gives you an overview of your credit standing. It provides all credit reports each credit bureau has for you into one file. You are assured that, as to whatever credit report the lender will use as a reference to know your creditworthiness, you have examined all of it already.
But still, living within your means, using debt wisely and paying all bills—including credit card minimum payments—on time are smart financial moves. It shows good credit management leads to higher credit scores, which lowers your borrowing cost.
