About Credit Reports
A
credit report is a history of how consistently you pay your financial obligations. A credit report is created when you first borrow money or apply for credit. On a regular basis, the companies that lend money or issue credit cards to you (banks, finance companies, credit unions, retailers, etc.) send the credit reporting agencies specific and factual information about their financial relationship with you found in your credit report - when you opened up your account, if you make your payments on time, if you miss a payment, or if you have gone over your credit limit, etc.
Major credit bureaus, such as
Equifax Canada, receive this information directly from financial and retail institutions and retain it to help other lenders make decisions about granting you credit. Because your
credit report contains all the information received from your lenders and provides a picture of your financial health, other lenders will request your credit report when they are determining whether or not to grant you a loan. Your credit report is a history that will help them determine what kind of lending risk you are - if you are likely to repay your obligation on time or not.
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