When is the last time you checked your credit?
We all want to have a good credit rating. Having a good credit rating allows us access to credit when we need it, helps ensure the best interest rates can be offered when applying for loans and generally leaves people with options should you ever need them.
At the beginning of a new year, most of us do certain things: we clean out our closets, set resolutions for the coming year and prepare to do our taxes. In addition to all of those important tasks, a good idea is to request and review your personal credit history. what you should be checking for are accuracy and potential errors. There are several credit-reporting agencies in Canada that offer a once annual, free personal credit report that can be mailed or emailed to the applicant. The federal Office of Consumer Affairs has links (http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/h_ca02146.html) that can help navigate you to these reporting agencies and with other credit-related issues. Your credit report can detail things like what creditors have recently requested access to your credit information, who is listed as a creditor against you and your actual credit rating amongst other things.
What many individuals are surprised to discover is that there is a reporting error on their report. You may say that is no big deal, but you would be very wrong. The effects of an inaccurate credit rating can be quantitative, costly and can include:
• A lowered credit rating
• Being denied a loan or credit when you need it most
• Paying a higher interest rate on existing or new credit than you should be paying
• Being subject to terms and restrictions on credit and/or re-payment
• Possible job opportunity loss if financial clearance is a condition of employment (i.e banks)
I Have An Error On My Credit Report
Although people and companies make their best efforts, errors do occur. The problem is that sometimes the reporting agency or creditor is reluctant to correct an error; therefore opening themselves up to liability, they deny responsibility for the error all together or your request gets ignored. In other cases, even when an error has been corrected the damage is done and the party has suffered a financial consequence they may not have even been aware of and that is very difficult to quantify.