So, you’ve reviewed part 1 of this blog series and you have gained a better understanding of the elements of your credit report and what lenders are looking for. But wait – there is more to just understanding those elements - now there are new things that are reporting to your credit report that were not included in the past.
In the past, primarily loans, credit cards and lines of credit reported in the trade lines area of the credit report. This meant that as long as you paid those creditors on time, if you paid your phone bill for example a month late, it wouldn’t negatively impact your credit report.
Well things have changed.
Mortgages – mortgages now report to your credit report. So, if you make a payment late on your mortgage, it will negatively impact your credit score. With this there is a new M Rating that relates to the reporting of mortgages.
Telecommunication providers – While a few phone providers (both cell phone and home phone services) started this practice a couple of years ago, most are now reporting to your credit report. Make a payment late on your phone bill and risk damaging your credit. Typically telecommunication providers register their rating as an O rating because the payment terms are every 30 days.
To review the entire Equifax Credit Report User Guide – click here: http://www.equifax.com/pdfs/corp/CIS-105-E_Consumer_User_Guide.PDF.
If you have bad credit reporting to your credit report and don’t know what to do – Call us because we can help. DebtCare Canada: 1-888-890-0888.