Contents and Uses of Credit Report Canada
Credit report Canada offers comprehensive information about the identification, credit history, public records, inquiries and other details about the prospective borrower or client. It not only helps the lenders to effectively determine the eligibility of the prospective borrower but such borrower can also have a overview of his or her credit score and standing in the financial market.
Identification Information
First and foremost component in credit report Canada is the identification information of the prospective borrower. It contains the name, address (both past and present), and social security number, date of birth, telephone number, and employment history of the person concerned.
Credit History
Second most important part in Canada credit report and the one having major bearing on the financial prospects of the intending borrower, is the credit history of such person. It contains all the information relating to the accounts of credit, loans obtained from different financial institutions and other sources, the way of addressing the repayment issues, and current status. It would especially focus on the repayment schedule and timely payment of the same and the number of times one has been defaulter.
Legal Documents
Third part of the credit report Canada contains all the information relating to the judgments pronounced for and against the prospective borrower in similar cases; instances of bankruptcies if any; and other registered documents and instruments. In essence it is a comprehensive documented legal history of the credit record, its status, and habits of the prospective borrower.
Credit Inquiries
Credit inquiries will usually be carried by the prospective financiers whenever someone approaches them to get some financial assistance in form of loans. It indicates the numbers of times the prospective lenders have visited the credit report of the borrower. Canada credit report indicating such figures is very important for the lender to determine the risk involved in financing the borrower.
Components that are Not Part of the Report
However there are certain factors relating to the financial status as well as history of the prospective borrower that does not constitute part of the credit report Canada. For instance; the health background and treatment histories of the client won’t be reflected in the report. At the same time the report will also not indicate the purchases and other expenses incurred by the client without getting credits. That effectively means that cash transactions made by a person will not be part of the credit report provided by the reporting agencies. Similarly, the race, ethnicity or ancestry of the borrower does not constitute part of the report.
Debts Not Constituting Liabilities
If any of the debt incurred does not constitute liability for the prospective borrower or for which he or she is not personally liable, such debt will not be reflected in Canada credit report. Perhaps the most important factor is such debts that are never reported to the credit bureaus by the debtors. They will never be the part of a credit report generated by any of the major credit agencies.
That is exactly why a lender will look beyond the credit report generated while considering the feasibility of advancing a loan to a prospective borrower though the report will always have a major impact on the final decision in this regard.
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