What is a credit report?

 

In general, a credit report will show your financial position in life.

 

It will show all the companies that you have 'credit' with, which means who you have borrowed money from, the amount you owe each, and how you are paying these loans back.  Your credit score is a three-digit number that potential lenders can use to gauge if you are a good candidate to extend further money to.

 

Each item listed on your credit report will include:

  • what it is (ex. a bank account, a car loan, a credit card, a mortgage, etc.)
  • the contact information for the creditor
  • how much money is held in that account (for a bank account) or how much money is owed
  • how much your last payment was, when this was made, and if you paid this late

 

What other information is on a credit report?

 

Beyond specific financial information, a credit report will also provide:

  • current and previous contact information, such as addresses and phone numbers
  • current and previous employment
  • the chronological dates involved

 

What is the difference between a hard and soft credit inquiry?

 

When a lender (ex. a bank, a phone provider, a car financer, etc.) asks for your permission to pull your credit report, consider giving you credit, this is most often a hard inquiry.  This means that your credit score, the three-digit gauge of how to judge if you should be granted a loan, may go down by 5 to 10 points.  The lender will also likely be reporting on your credit report, which means that they will ensure your information is up to date.

 

A soft inquiry is when someone looks at your current credit report solely to obtain information.  They cannot change or add to your report.  A soft inquiry does not have any effect on your credit score, although the company who requested to see your report may be listed on it.

 

How might a Private Investigator use the information from a credit report to find someone who has been reported as lost?

 

The activity or non-activity on a credit report should help indicate whether a person is still in an area. For example, if all the phone numbers listed are Not in Service (NIS), and there have been no recent credit requests, it may be deduced that either the person has left the country or the person may have passed away.

 

One other option is if the person has fallen on hard times and is living rough, often due to a substance abuse issue.  In this case, the Private Investigator may have other resources to confirm the person's lifestyle before they were reported as missing and so have other leads of where to look for them.

 

Do all Canadians have a credit report?  Can I not have one?

 

It is incredibly rare to not be able to pull a credit report on someone, using their name, date of birth, and recent contact information.  This is especially the case in our modern technical world where cash is no longer the first choice of currency, and credit is now considered a necessity.

 

Most large financial transactions will automatically be reported, such as buying a house, buying a vehicle, or even buying a cell phone.

 

Can my credit report be accessed without my permission?

 

As per the Canadian Consumer Reporting Act, there are only a few exceptions where your credit report can be pulled without your knowledge.  One of these is if there is a court judgment or order against you, where you legally owe money to someone else.  In this instance, a soft credit inquiry may be pulled to gain your contact information or to help locate an asset.  For example, your credit report may show that you own a vehicle that could be potentially repossessed or a garnishment may be issued to the most recent employer listed on your report.

 

How long will information stay on my credit report?

 

In general, most information on your credit report will be there for 7 years, whether good or bad.  This includes any bankruptcies or legal judgments.  Criminal convictions are not included on your credit report.

 

What if I discover that there is incorrect information on my credit report?

 

Oftentimes, the information on a credit report may be incorrect, usually if you have a common name.  If this is just an incorrect telephone number, it may just annoy the receiver of repeated telephone calls.  However, if it is something major, such as a bank loan, it could detrimentally and unfairly affect your credit score.  You should contact Equifax or Transunion immediately upon discovery of the error to rectify the information on your report.

 

How do I get a resolved debt removed from my credit report?

 

This can often be a tricky question, because most debtors believe that the party that placed that item on your credit report has the power to simply take it off.  Not necessarily.  To show a matter as being resolved, the onus is primarily on the owner of the credit report to provide their evidence of resolution to the credit reporting agency in order to update their report.   This could include a 'payment in full' receipt of the creditor, or a copy of a court endorsement of a settlement.

 

How do I get a copy of my credit report?

 

In Ontario, Canada, there are two major providers of credit reports: Equifax and Transunion.  By law, you as a consumer are allowed to access a free copy of your credit report on an annual basis.  To ensure the information is correct on your report and to protect your credit rating, it is a good idea to take a look at this report annually.

 

 

When Agent K Private Investigations Inc. does a soft credit inquiry for a background check, the potential employee or tenant will be contacted directly to provide their written permission to do so.  Then that person will be provided with a complimentary copy of this report for review and to keep for their records.  www.agentkpi.ca