Credit Bureau Credit Scoring

A credit bureau and credit scoring are very important factors for anyone trying to secure mortgage financing but many do not understand credit bureaus and there impact on the ability to obtain financing

What is credit scoring?

Credit scoring is a quick, accurate and consistent scientific method for assessing credit risk. Your credit scores are based on data stored by a credit repository about your credit history and payment patterns. Statistical models that assign points to factors indicative of repayment calculate credit scores. These scoring models exist in software utilized by credit bureaus or lenders.

The resulting score is a 'snapshot'. It sums up what your past payment performance and current usage of credit say about your level of credit risk to the lender. Because the score is a composite of the entire applicant's credit information, no single factor like a late payment or even a bankruptcy will be the sole cause of an unacceptable credit score.

What the credit score includes
How to improve your Credit Profile and Score

There is no magic to improving your credit score. Credit scores automatically improve as your credit profile gets better. Improving your credit profile is not always a quick fix; however, here are a few things to remember.
Pay down all your credit cards balances to below 30% of the available credit balance.
Do not consolidate accounts on to one or two cards and close other accounts. Low balances on a few cards are better than high balances on the one or two credit cards you have left open. Consolidation of your balances will artificially skew the appearance of your credit utilization.
Keep the number of credit cards you own to a conservative number, but don't close accounts
without the advice of a knowledgeable mortgage consultant/banker.
Review your credit report for accuracy at least 90 days before you intend to apply for a mortgage or loan. Have any inaccurate information on your report corrected at the repository that is reporting the erroneous information on your report.
Understanding that paying off a collection account or judgment, for example, will not eliminate it from your credit profile. Paid or satisfied negative credit items will show a zero balance, but will not disappear from your credit profile for seven years they still reflect a late or a collection account even if you paid it off.

How does Credit Scoring help you?

Credit scoring is not a crystal ball, but it helps lenders make more informed decisions and offers real benefits to the consumer.
Credit scoring evaluates all applicants by the same criteria. Opinions do not enter the scoring equation.
Changes in your credit performance will change your credit score. While 'scoring scales' remain constant, your place on the scale will change as your individual credit patterns change.
Scoring speeds up credit decisions. Scores help the lender make decisions more rapidly, and often with less documentation.
Scoring helps make more credit available to the borrowing public. With more credit available, the cost of credit to you decreases.

How do you correct an error on your Credit Report

You may dispute any information on your credit report. Once the information is received an investigation will be initiated. If the disputed information cannot be verified, that disputed information will be deleted from your credit report. Contact the following credit bureaus for details:
Equifax Canada Inc. Consumer Relations Dept Box 190, Jean Talon Station Montreal, Quebec
H1S 2Z2.
Transunion P. O. Box 338 LCD1 Hamilton, Ontario L8L 7W2 (Provinces other than Quebec)
Transunion 1600 Henri Bourassa Boul. Ouest Suite 200 Montreal, Quebec Quebec Residents
 Tel: 1-800-465-7166 consumer.relations@equifax.com www.tuscores.ca www.tuscores.ca