What Is A Credit Bureau? / Equifax / TransUnion (Canada) / Credit Score / Credit Report / CREDIT


Hi it’s Mark Albert. I really appreciate you
being with me today. Today we’re going to look at the topic of what is a credit
bureau? What is a credit bureau? We’re gonna answer that and it’s the first of
many videos that I’m gonna do in a series to do with our credit score and
credit report. So it will be very helpful. Just a quick note if you haven’t subscribed
already please do so and then if you want to interact that’ll be great. So
what is a credit bureau? Well first of all there are there are two companies in
Canada that are considered credit bureaus. There’s Equifax and TransUnion
you’ll notice TransUnion spelled all as one word with the capital u in the
middle. And so what they do is in essence is they they collect information on us
personally. They collect data and they don’t just collect it but they compile it
within their algorithm, within their formula, their secret sauce if you would,
to come up with what we call a credit score. And and this and they’ll also put
that into a credit report which has a history of our credit. And what happens
is that then becomes available to lenders and people that are creditors
anyone who maybe you want to lend money to or for different other reasons they
want to assess your creditworthiness. Are you worthy to receive this loan? Are you
gonna be a risk to us as a lender if we give you this money? Are you gonna pay us
back? And so it’s basically boils down to a business decision for them and for you
you just want to make sure that your credit history is all lined up
everything’s in order and you have a very good solid credit score, credit
history. So do these credit bureaus, do they make the lending decisions? Sowhen
decisions are made who makes them? Well basically it’s the the creditor or the
lender they’re the ones who the decision. So the credit bureau all
they do is provide the data. They’re like the vault of your credit
history they are the keepers of the data and and then they’re the ones that we go
to to get that type of information. So we’re talking about information where
does all of this information come from? Well they get it from a lot of different
sources so they may get it from creditors, lenders, credit card companies,
banks, financial institutes, your cell phone company. They’ll report in in terms
of your credit history your paying bills on time are you not paying bills on time
they’ll report all that in there. Public record data, some companies that the
companies the organization that holds your public record data let’s say if you
were bankrupt if you ever filed for a consumer proposal that gets reported in
as well and if you are with the collection so that type of stuff will
get reported in to them. So what type of information would you expect to see on
your credit report what Equifax and TransUnion what’s the type of
information they hold? Well they have your personal information so your your
name your number your your your social insurance number. They have your credit
accounts. So lenders creditors that that report in to them, and keep in mind that
some people who report in to these two companies they may just report into one
or into both and that’s why if you’re getting a report and you want to check
if it’s accurate it’s good to check with both. So your credit account history. So
let’s say let’s say I put an application and get a credit card. Okay?
So every month if I make my payments on time the credit card company is going to
set up so there’s a direct connect between them and these guys and every
month they’ll report in. Say yeah, paid it on time, paid it on time, paid it on time , oh miss the payment I was this late for my I was
two months late on this payment. All that gets reported in and it becomes part of
your credit history. The reliability that you are you’re gonna pay back your
bills. That you’re gonna follow through on your responsibilities on your financial
obligations. So inquiry. So when it comes to inquiries, so let’s say I submit an
application to get credit and that organization runs a credit report on me
that’s what they call a hard pull and that will have a slight negative impact
on my score. And I will say that there’s a lot of companies out there wanting you to check that with them through these other companies not one of these two but other
companies, we’ll give it for free we’ll do this we’ll do that. And on their sites and
their commercials they kind of build it up in such a negative way I think
there’s there’s just been some misconceptions out there and I’m gonna
and I’m gonna clarify there’s been a hard fall soft pull and how many of this
and that and you do what’s the impact on a future video so you want to stay tuned
for that one. But these are pulls. So a soft pull would be you check your own
credit on your own. Your your your monitoring your credit
the credit card company does a pre-approval and then they send you
something in the mail say oh you’re pre-approved those things are soft pulls
there is no impacting credit score. And also type of information mentioned
already but public record and collections so if there was bankruptcy a
consumer proposal if I went to collections I don’t gets reported in. So
the final thing is is it free to get a credit report? Yes it is it is free.
You get one by law once a year from both of these two companies and and you can
do that and you can check the reliability of your information. If
there’s something that’s not accurate on a future video I’m gonna show I’m going
to talk about how to dispute that. What’s the process if you’re using Equifax
versus TransUnion. So that’ll be in a future video. So hopefully this was helpful for you. What is a credit bureau? Feel free to
like. Any questions of clarification would be wonderful. Listen have a great
day. Take care of your credit and understand these things a little bit
better. Thank you very much.

5 comments on “What Is A Credit Bureau? / Equifax / TransUnion (Canada) / Credit Score / Credit Report / CREDIT”

  1. abdo ablat says:

    Hey!
    Let’s say if I want move to CAN from USA. Does my US credit history (equfox &. Trans union)will works in Canada??
    If works, Can I able to transfer my US credit scores or do I need to rebuild in CANADA?

    Thanks.

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