First off I just want to share with you what exactly the Credit Bureaus are and what their role is in Canada.
All three of the Canadian Credit Bureaus are privately owned companies that provide reports about you and your money habits. Every month they receive information from department stores, banks, and credit card companies on all the new accounts opened in their store/bank/card company. The bureaus put together the information they have to create a profile about you. The information in this profile outlines how much money you make, how much debt you have and your record of paying down that debt. Once your profile information is compiled the bureaus sell this information to your creditors! So much for the privacy act here!!
Each bureau compiles information on millions of people every month. There is a huge challenge to maintain a level of accuracy with this many people in the database. All you have to do is look in the phonebook and see how many people have the same names. You can imagine that information can be mixed up fairly easily, especially if you have a relatively common name!
When you are considering going into business for yourself you will want to be proactive about your credit rating. Make sure that all the information is correct including your birthday, social insurance number and your credit history.
You have a few options to achieve this. First the free way is to write a letter to each of the Bureaus asking them to mail you a copy of your credit file. In this letter you will want to include your full name, current address, previous address (if you have moved in the last five years), your birth date, and photocopies of both sides of at least two pieces of identification, one of which shows your signature. Examples of acceptable identification are your driver’s license, birth certificate, social insurance card, passport or a credit card. The addresses of each are:
All three of the Canadian Credit Bureaus are privately owned companies that provide reports about you and your money habits. Every month they receive information from department stores, banks, and credit card companies on all the new accounts opened in their store/bank/card company. The bureaus put together the information they have to create a profile about you. The information in this profile outlines how much money you make, how much debt you have and your record of paying down that debt. Once your profile information is compiled the bureaus sell this information to your creditors! So much for the privacy act here!!
Each bureau compiles information on millions of people every month. There is a huge challenge to maintain a level of accuracy with this many people in the database. All you have to do is look in the phonebook and see how many people have the same names. You can imagine that information can be mixed up fairly easily, especially if you have a relatively common name!
When you are considering going into business for yourself you will want to be proactive about your credit rating. Make sure that all the information is correct including your birthday, social insurance number and your credit history.
You have a few options to achieve this. First the free way is to write a letter to each of the Bureaus asking them to mail you a copy of your credit file. In this letter you will want to include your full name, current address, previous address (if you have moved in the last five years), your birth date, and photocopies of both sides of at least two pieces of identification, one of which shows your signature. Examples of acceptable identification are your driver’s license, birth certificate, social insurance card, passport or a credit card. The addresses of each are:
Equifax Canada Inc.
Consumer Relations Department
Box 190, Jean Talon Station,
Montreal, Quebec,
H1SA 2Z2
Trans Union of Canada Inc.
Consumer Relations Centre,
Box 338, LCD 1,
Hamilton, Ontario
L8L 7W2
Northern Credit Bureaus
Consumer Relations Department
Box 336
Rideau Blvd
Rouyn Noranda (Qc)
J9Z 1P2
The next option you have is instant and easy however it costs money. The one I have found to be most user friendly is http://www.equifax.ca/. You can purchase your Credit Report for $15.50 Canadian from this website. Another option is to purchase what they call your Score Power which includes your Credit Report, Credit Score and your Score Analysis for $23.95. This is the one I usually purchase as it is much more in depth.
Once you receive your report make sure to go through it thoroughly. Check to see that it is actually yours and not someone with your same birthday or name, and that it has your credit information on it and it is current (within the last month). If it is in fact not correct there is a form on their website for you to fill out and make corrections. This process could take up to a month to complete.
Your FICO Score summarizes the information on your Equifax credit report. Typically if your score is over 680 you will have a wide range of loans and credit products available to you. Once you dip below that number you become more of a risk to potential lenders. Keeping in mind that each lender has their own policies and tolerance for risk when making lending decisions, so there is no concrete cut off number.
To learn more about starting your own business visit my website at www.businessdoneright.ca.
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