In Ontario you are entitled to 1 free credit report every six months and if you aren’t already you should absolutely be taking advantage of those free reports. Your credit report is full of very important information and if you’re planning to get a loan or at any point in the rest of your life then you need to stay on top of your report. Here are our reasons why.
Checking for Issues
Credit reports are compiled algorithmically which means errors can slip through all the time. Normally this wouldn’t be too much of a concern but on a credit report, errors can have a serious impact on your credit score and therefore your ability to get a loan. Some errors will only cause administrative problems like if your name or address is wrong, but if a closed account is still marked as open, or a payment that you made on time is marked as late, that will have a negative impact and you’ll want that fixed as soon as possible.
While it’s less common, there is also the possibility of fraud to be on the lookout for, your credit report can give you a clear look at all of your credit activity and you’ll be able to quickly identify any suspicious entries if you know what’s supposed to be there and what isn’t.
Stay Informed
Beyond making sure it’s all accurate, just knowing exactly what’s going on with your credit can be greatly beneficial. If you’re in tune with your finances then you know exactly where you can save money and when. You know what loans will soon be paid off and you’ll have access to some extra cash, and you know what loans you could get away with paying more on.
It also means you’ll know exactly when it’s a good time to get a loan and when you’ll get the best rates based on your credit situation. With that knowledge you can plan big life decisions well in advance.
It’s Free
Even if none of these reasons appeal to you, if getting a credit report every 6 months is completely free then what reason do you have not to do it? Some people believe that getting a credit report negatively impacts your credit score but that’s actually a myth. A Hard credit inquiry might impact your score but that’s something financial institutions do before giving you a loan. And you know what they’re looking at? Your credit report. If they want to know what’s on there, so should you.