Your credit rating is a measure of your record of borrowing and repayment. If you don't have a credit rating, most institutions will not lend you money.

The credit bureau is a record keeping business of a consumers' use of credit. A credit report provides a credit history, which is a list of facts about how they handle debt.  Information is gathered from credit card companies, financial institutions, retailers and other lenders. Most credit information remains on a file for seven years. Negative information as well as positive information is also reported on your file.

How to build a good credit rating

• Pay all of your bills promptly. Pay special attention to credit cards.
• Don't stretch yourself too thin. Don't borrow more than you are capable of paying back.
• Make sure payments are always made on time.
• Make it a goal to pay all debts off as quickly as possible. Not only does it give you a good credit rating, you will save valuable interest costs.

Checking your credit rating

Everyone has the right to know their credit rating. If your report contains inaccurate or insufficient information, you can denied for a loan or credit card. If you are denied credit or aren't sure of your credit rating you can check your file. Or if you plan to apply for a large amount of credit such as a mortgage you might apply for a report. You have access to your credit report for a nominal charge or in some cases free.

Here are some guidelines

• Contact a credit bureau. They are Equifax and TransUnion.
• You can order your credit report online and you will have it immediately. If it is mailed it could take 2-4 weeks to receive it.  
• Your file will be changed immediately if you notice any errors. You will have to provide written proof. If you are not able to supply proof, the credit bureau will investigate if you give the facts. When your facts are confirmed, your file will be updated.
• If proof cannot be supplied, what happens next varies depending on where you live. Provinces each have their own legislation with regards to credit bureaus. The information you are challenging may be removed your credit file. Another option is that a note may be added stating the information is "in dispute".
• Provincial law requires that if an error is corrected, the credit bureau must notify companies that have inquired about you in the past 6 months.

Use our mortgage calculators to determine the size of mortgage you qualify for.