Understanding Your Credit Rating & Tradelines in Canada on Your Credit Report. http://www.mymoneycoach.ca | http://www.nomoredebts.org
Credit Video 2: In this simple video learn how to read your credit report by understanding the tradelines and credit ratings.
For more information on your credit ratings and credit report please see our other videos by visiting: http://www.mymoneycoach.ca.
If you’d like to book a free and confidential appointment with one of our credit counsellors please call us at 1-888-527-8999 or visit us at http://www.nomoredebts.org. It’s free. All you have to lose is your debt!
In this video we will touch upon:
The different trade lines on your credit report which can be R, I, and O.
•R stands for revolving – an example of this is a credit card where you can use it and pay it regularly.
•I stands for installment – an example of this is a loan where you make regular scheduled payments (i.e. weekly, bi-weekly, or monthly) and the balance goes down. You cannot re-borrow from the loan.
•O stands for open – this is where you are being provided a service for which you are paying for monthly. An example of this is a gym membership or cell phone contract.
Attached to each trade line is a specific number between 1 and 9 and that number is your credit rating which shows your payment behaviour.
1 – means you are paying your creditor as agreed. This can mean making minimum payments, higher than minimum, or paying in full.
2 – means you are late or 1 payment past due.
3 – means you are 2 payments past due.
4 – means you are 3 payments past due.
5 – means you are 4 payments past due.
6 – there is no 6.
7 – means you have restructured your debts.
8 – means a repossession of an asset like a vehicle.
9 – means that your debt is in collections, or you’ve been bankrupt on it, or it’s a bad debt.
All information stays on your credit report for a maximum of 6-7 years depending on the province you live in.
For more information on the cost of making minimum payments or your credit score please see our other videos by visiting http://www.mymoneycoach.ca.
Videos were created by the Education Department at the Credit Counselling Society – if you want to learn more about our team and would be interested in having financial literacy workshops at your workplace/organization please contact us: http://www.nomoredebts.org/credit-counselling-society/consumer-services/credit-budgeting-workshops.html
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