For any individual who has been credit active
For any individual who has been credit-active – that is, has borrowed money (for a credit card, mortgage, car, etc.) – a credit file is maintained over the past seven years.
Whenever you apply for loan, your credit file gets updated. This credit history affects whether a credit provider will approve your loan.
What does a credit file contain?
Your file contains information about you and your previous seven years of credit activity, including:
- Personal information such as name, residential address, date of birth, number of driver’s license, and current or previous employer
- Credit requests and inquiries that you have made over the past five years
- Records of some existing loan accounts
- Overdue accounts that were reported against your name, including an indication of whether or not the default amount was paid.
- Information on bankruptcy
- Default judgments
- Information on public records
How can anyone get a copy of my credit file?
Before applying for a loan, it is a good idea to get a copy of your credit file if you apply for a home or business loan. Getting a copy of your credit information file will help you understand your adverse credit, evaluate and manage it. That’s why you should choose us, BuildME.
Tips for retaining credit-worthiness
- Paying bills on time. An overdue account is typically a debt owed for a minimum of 60 days. Unpaid accounts will remain for seven years on the database.
- Call your credit provider(s) promptly and alert them if an issue meets your commitments.
- To ensure zero mistakes in the information, review your credit file and find any overdue accounts that have been forgotten about.
- To ensure someone does not fraudulently use your identity, monitor your credit file.
- Limit credit applications only to critical situations. Every new application is recorded on your credit file. Too many applications can be a problem for some lenders, even for loan pre-approval.
- Remember that for seven years from the date of listing, the details of all overdue accounts, even when paid, remain on your file.
When I have past credit problems or bad credit history, what do I do?
You may still be able to secure a competitive home loan, even if you have a bad credit mortgage. Starting with the following information, make sure you are aware of all your options:
- Inform our mortgage advisor and lender of any issues in your credit history at the beginning. Our mortgage specialistwill show you loan products which will be suitable for your situation.
- Explain each issue, why it occurred and how you have corrected it.
- Negative responses to credit requests do not necessarily mean that your credit file is defective. Credit suppliers each have their criteria for lending, so seek an explanation.
- Through a non-conforming lender, investigate securing your loan. They consider applications from individuals with problems with past credit. However, you will need to prove that you are now in a position to support the loan.