Your credit report is a snapshot of your financial situation. Understanding how to read it and what it’s based on can  help you manage your credit and improve your credit score.  You should review your credit report annually for accuracy and to make sure you haven’t been the victim of fraud or identity theft.

Here’s what your report includes:

• Personal Information. Your name, address, date of birth, etc. Check for obvious errors.
• Credit History. A list of your open and paid credit accounts, including total loan amount, credit limit, and how well  you've paid the account. Each account is rated, often with a letter and number. “R” means “revolving debt”. “I”  means “instalment account”. The numbers go from 0 (too new to rate) to 9 (bad debt, collection or bankruptcy). For  instance, “R1” means you pay your bills within 30 days as agreed. Make sure everything is correct (for  example, are closed accounts still listed as open?).
• Credit Inquiries. A list of everyone who’s asked to see your report. “Hard inquiries” are made when you apply for  new credit. Obviously, you should do this in moderation.

These factors are used to determine your credit score,  which can range from 300 (worst) to 900 (best). Higher  scores mean you're more likely to be able to borrow larger amounts at lower interest rates. Lower scores mean you're a higher risk, so you’re more likely to be offered lower amounts at higher interest rates—or be denied
credit altogether!

There are two national credit bureaus: TransUnion and Equifax. Since their credit reports may be slightly different,  you should look at both annually.  You can ask for a free copy of your reports by downloading a form from each  bureau and mailing it in. If you want an instant credit report, there’s a fee.

Once you have your credit reports, if  you’d like some tips on how to improve your credit score, please call us!

Courtesy of :

Sarah Strauss - Broker/Owner
The Place To Mortgage - A Mortgage Alliance Franchise
Direct: 587-316-6367
Toll Free: 1-888-474-8123 ext. 2
Fax: 1-403-398-0231
sarah@ThePlaceToMortgage.com
www.ThePlaceToMortgage.com/Sarah

For more information, please give me a call at (403) 253-7326