Credit Score Affects Equifax TransUnionCanada Credit Cares
What Affects Credit Score, with Equifax and TransUnion
Negative information can stay on your credit report for six, seven, ten, up to fourteen years, and become negative for your credit score. Equifax and TransUnion are the two bureaus in Canada that manage credit and have differences in how they handle credit. Research and find out which works the best for your personal financial needs.
Errors on your credit can appear and change your score even if it’s an overlook. Have you been checking yours?
Have all the information. You can use both Equifax and TransUnion if you wish, and they will probably grant you two different credit scores because they each apply unique programs and formulas to come up with the number. But they won’t be too different.
A lot! Have a look:
My apologies for turning to a tough note right now. But this information is relevant and important! Relationships can end because of bad credit. Many studies and articles prove so. It does depend on the person and their stance on money, of course, but money problems could put a strain on any relationship.
Did you see Rachel Lindsay on The Bachelorette? Never, to my knowledge, has a contestant brought up asking the men for their credit scores in the past seasons. It can be an enormous matter in a relationship and whether you want to pursue a future with someone. Financial distress may lead to relationship distress and emotional distress.
To attend university or college with no loans is a marvelous feat, though it’s not a reality for many Canadians. This article from VICE states, “… students are left with a collective debt of $28.3 billion according to a 2012 report from Statistics Canada.”
Student loan payments can become troublesome to wrap your head around if the proper strategy and execution aren’t done. If payments are not on time, it may be negative to your credit score. Then affect many other aspects of life. After getting an education and graduating, students are expected to go into the world knowing everything about their expenditures and being prepared to pay everything right away. Not reasonable!
It always depends on the lender in the end whether they approve an auto loan or not. Interest rates will differ, depending on the individual credit score. Shopping around is crucial. The same vehicle may cost much higher for one individual versus the other, Loans Canada explains.
Parking and traffic tickets can be neglected and escalate. Those pesky and annoying tickets are more hurtful than you may think! Unpaid parking tickets could appear on your report if the figures are that poor. Your score will most likely move back up after paying.
Food, water, shelter, clothing. One can endure without shelter in particular demographics and conditions. What I mean, is the ability to rent a house or apartment could definitely be affected by your poor score. Or ability to become a homeowner. Or approval for a mortgage or property insurance! These things do matter when thinking of your home.
Credit reports can disclose if you pay your rent or not. Landlords, therefore, raise the cost of your damage deposit or turn you down altogether.
When referring to home insurance, both parties do say different things. But sources state, “representatives of the insurance industry will argue that a credit score is an accurate reflection of a person’s behavior and level of financial responsibility.”
The same report from DMW Insurance Ltd. states, “MoneySense magazine reported in 2013 that rates could increase by as much as 80% based on credit scores. In certain instances, coverage may not get approval.”
Premiums and insurance costs could skyrocket with a bad credit score.
Don’t be discouraged. There are options!
Potential employers will check your credit score. Most likely.
If errors are in your report, it is at the will of the employer whether they hire you or not. Or they could glance at your past employment and contact information. Does depend on the job that is being applied for.
The Huffington Post published an article about a Canadian man who did not get a job because of his credit score. The economic downturn affected his credit, but the matter still ended in rejection.
Are you an entrepreneur? Want to open a small business? The bank checks not only your business credit score but your personal credit score. Though, the reasons behind the numbers are taken into account.
According to an article from The Business Development Bank of Canada and Valérie Bornais, Manager at BDC’s Entrepreneurship Centre in Quebec City, “If it’s the result of an unfortunate event, such as a divorce, but the idea is sound, people are more willing to take a risk and help you out.”
From Equifax Canada numbers and Credit Karma, here is the ranking of credit score numbers.