Vancouver Credit Bureau
Your Vancouver Credit Bureau file contains information on your current and previous credit accounts and assigns a credit rating based on performance and payment history.
When you apply for a loan, the lender will mostly likely check your Vancouver Credit Bureau record. Credit bureaus are privately run companies that collect vast amounts of data about how we handle the credit accounts we already have. The legal standards vary, but the basic principles are that the data must be accurate and you must be given the opportunity to review and correct your file.
Two companies dominate the Canadian credit rating market for individuals - Equifax Canada Inc. and Trans-Union of Canada Inc. Using information from the credit granters, credit bureaus rate each one of your accounts on a standardized nine-point scale. The best rating - "one" - indicates you pay on time or within 30 days.
The rating will rise one point for each 30 days that the payment is late. Your often considered a bad credit risk if your accounts are rated "three" or higher. You get a "three" if you are two payments past due or have a balance overdue by 60-90 days.
Even if your accounts are paid up, your rating may still suffer if your payments were consistently late. If a credit granter has repossessed an item, you get an "eight". If the account has been declared a bad debt or been turned over to a collection agency, you will get a "9".
It's a good idea to check your credit file once a year, and especially before applying for a large loan. If you're turned down for credit, ask the lender for the name and phone number of the credit bureau used.