Unless one can figure out another way, without credit it is difficult to manage with some of the most frequently needed expenses encountered in our day to day lives; purchasing a home, furniture, cars, university or college education, cell phones or internet access to name just a few.
Almost every lender will use your credit track record to determine first if they will extend you credit and the conditions applied to it, along with interest rates you qualify for. Your credit record can even affect the decision of a potential new employer – many businesses now rely on your credit report as a predictor of risk-factor and establishing confidence in their hiring decision!
Therefore, it’s essential that you get and keep up great credit because we all rely on it for the important things and situations in our lives. That’s why it’s critical to understand how credit should work for you, how it can ultimately save you money, and secure your future!
What is your credit track record?
Your credit track record consists of all credit transactions that you currently have, or have had and is represented in two integral ways; by your Credit Report and your Credit Rating.
The payment history of a multitude of credit profiles that makes up your credit track record is summarized through a electronic file that is gathered and stored by major credit-reporting agencies like Equifax or TransUnion.
This illustrates the history of your past credit and current credit and can come from any of the following lenders, or credit-using services we encounter in our lives:
Banks or Credit Unions
Rental Applications (apartments, homes, cars, etc.)
Credit Bureaus gather and maintain data obtained about your credit standing as a consumer every time you make or miss a payment; exceed or stay within limits on your credit cards or on any of the short-list of credit-using services listed above.
Then, whenever you apply for any kind of credit, these agencies sell your credit history data in the form your credit report.
Your credit history follows you everywhere as this valuable information that forms your credit report can be taken into consideration for any kind of lending situation.
Your Credit Report
Social Insurance Number
Date of Birth
Loan and credit account details
The information provided by your credit report is also a public display of your history relating to your work, and current and previous addresses over recent years. Also recorded is any public record information such as liens, bankruptcies, consumer proposals, overdue maintenance and child support are detailed as part of your credit profile.
Your personal data includes your social insurance number, date of birth, your first name and any different spellings you may have used for your name.
Applying for Credit Responsibly
Your credit report prominently features a thorough list of different businesses that have opted to obtain your credit data – these are businesses who have, may have or, have chosen not to provide you credit along with the dates they have “pinged” your credit.
What most people are unaware of for example, when you go out to get car financing, that one application alone could have the credit service “shop your application” out to several credit agencies for approval. Each time your credit score is affected in a negative way by each attempt to approve your application.
The most detailed portion of your credit report outlines your history that includes for original balance, current balance and current status (past and present) on any credit accounts you have and goes back as far as ten years!
Unfortunately, what your credit report doesn’t reflect are any of the personal reasons as to why you had “bad hits” to your credit, it’s only a summary of the facts. Perhaps there were medical issues for you or a family member; a business failure, or one or more job lay-offs that affected your finances that caused your car repossession, or led you to file a consumer proposal or bankruptcy. Everyone is one, two or three difficult life situations away from taking a downward turn on their credit profile.
Here comes the tricky part – in order to fix your credit, you have to get credit! But due to the credit bureau scoring system that lenders rely on it makes it difficult, if not impossible to get approved.
This is why we are here – TransCan Leasing Corp. partners with you to rebuild your credit profile. If you are ready to take steps to re-build and re-establish your financial situation, we will take those steps with you!
NOTHING BUILDS YOUR CREDIT PROFILE FASTER THAN 36 PERFECT CAR PAYMENTS!
Ask us NOW about our quality vehicles as Fair Rates!