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You often hear bankers or loan officers talk about your credit
rating or your credit score. With a bad Canada credit
guaranteed loan, where do they get this information and
what does it mean?
With bad Canada credit guaranteed loans, information about your
credit and payment habits are collected by credit bureaus.
In Canada, there are two major credit bureaus i) Equifax
and ii) TransUnion.
With a Canadian mortgage
lender, credit grantors provide
these companies with information on how their customers
pay their bills. These bureaus then assemble this
information, along with public record information obtained
from courthouses around the country, into a
"file" on each consumer.
In return, credit grantors (e.g., banks, leasing companies, credit
card companies) can obtain credit reports about consumers
before giving them a Canadian
mortgage loan or
issuing them credit.
Credit reports do not approve or reject consumer applications for
credit or a Canada
mortgage. They merely
report the information provided by the credit grantors.
Different credit grantors have different criteria for
evaluating loan requests.
For
example, when applying for an Canada home loan, a lender will look at more than just your
credit score, called the beacon score. They will
look at each of the individual entries and see how you
have done recently. Simply looking at the score does
not reveal everything.
For the best mortgage rate
in Canada, click
here.
Another
article of interest is mortgage
rate Ontario Canada.
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