credit report (credit rating, consumer report)

noun

A report that outlines how promptly you have made required payments on your debts, such as credit cards and loans.

When you apply for a mortgage loan, the lender will review your credit report to determine how risky it is to lend you money, based on your past behaviour.

The lender will often adjust the interest rate that they offer you based on your credit report. A good credit report will give you access to the best rates, while a poor credit report will mean you have to borrow at a higher rate.

Two organizations administer credit reports in Canada: Equifax Canada and TransUnion Canada. You can request your own credit report from either organization for free.

The most important thing you must do to maintain a good credit report is to make your required payments on time, every time.

However, it's also a good habit to review your credit report annually, to spot and correct any clerical errors. These are known to occur, and can cause embarrassment and inconvenience during your mortgage loan application process.


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