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Something that is very important in the world of finance is your credit rating. Great credit opens doors while bad credit can restrict you for years. This article is going to be focused on how to build and maintain a AAA Credit Rating. You might think that you have great credit but if you haven’t actually seen your credit bureau, or had it reviewed by a professional you aren’t going to know what you have and more importantly, what the Lender will work with and what the Lender won’t accept.  Sometimes the need for financing pops up unexpectedly and the difference between great credit and damaged credit can cost you from hundreds of dollars to tens of thousands depending on the amount borrowed. Maybe you would like to get into the housing market. If so, your credit is the first thing you want to check because if it is in need of repair, it could take weeks to years depending on your situation.

First things first, log on to the Equifax Canada website and pay the $24 to get your score. It won’t be the in depth version that I get but once you have it go over that information carefully and make sure what is on your credit bureau actually belongs to you and that it is accurate.   Believe me when I tell you that I have seen plenty of false entries on credit bureaus. If you happen to find something questionable on your credit bureau phone Equifax and get an explanation – 1-877-227-8800.  Entries that don’t belong to you will be investigated.

I had a Client who was purchasing a house and he had an accepted offer when he came to me. The purchase & sale agreement gave me 6 days to get financing approved or the deal could be lost. Client’s credit bureau showed a collection entered by a business in Calgary, and my Client was adamant that it didn’t belong to him. Now I’m working with Equifax to gather information on the collection agency. Without a word off a lie, when I pressed the agency about the collection they told me that there were only three people in the Calgary phone book with the same last name so they registered a collection against all of them in hopes of finding the right one.

Happy ending……not yet and here is why: No “A” Lender will give you a mortgage with an unpaid collection on your credit bureau whether it is yours or not. The Lender isn’t going to take our word for it that the collection shouldn’t be on the bureau, and the Client isn’t going to pay it because it isn’t his, so we need an official letter from the collection agency stating that the Client doesn’t owe this money. We also need the collection agency to contact Equifax and have the collection removed from Client’s credit bureau which will in turn give some repair to his credit score. This all takes time.

Simple enough…….not yet and the easy answer for this one is, because there is nothing in it for the collection agency. Face it, these companies make a living from harassing the crap out of people at all hours of the day and night, do you think they are going to give a rats rear end about someone that isn’t going to pay them money? My Client needs this now! But….the collection agency will get to it when they get to it. I have hounded many collection agencies to recover necessary paperwork in order to help my Clients and the agencies story is always the same. “Yes it’s on someone’s desk and it will be faxed in the morning” Yeah right. You get the drift.

Leave your comments or horror story.  Add my website as a link to yours and anytime you have a question about your credit you can ask.