What does your credit record say? Do you have a credit file?
A friend found out the hard way that she didn't have a credit record after
her husband passed away. Since he had always handled everything, from
investments to their joint chequing account, she was a non-person without a
credit record. Add to that her inexperience with financial matters at a high
stress point of life, and you can see the challenges she faced. "It's like
being 19 again and applying for credit for the first time" she told me.
Fortunately, since his life insurance covered their mortgage, and he had
invested wisely, she was in a fairly decent financial position. But it really
hit home, after 30 plus years of marriage, that her contributions to the family
finances had gone unrecorded and unnoticed even though she had signed the
household bills and cheques, every month for years.
How can you determine whether you are building a credit rating and are
considered credit worthy? What can you do to make sure you are establishing a
credit record in your own right? A fast way of finding out whether you have a
credit rating is to look at your financial information. If you have a joint
chequing account, whose name is first? Is it Mr. John Smith, Mrs. Mary Smith 22
Yourtown Drive, Elmira, Ontario.
The name which is listed first is the person who will benefit from the
credit transactions which come through this account. You may wish to have a
separate chequing or savings in your own name to track your credit transactions
and establish a credit record.
Another way is to look at your credit cards. Are they in your name, with
your partner as the second card holder, or are you the second card holder? Are
you the primary borrower or secondary borrower when you and your partner borrow
money as a loan or mortgage? Again, the first listing is the primary borrower
and the person who will benefit from the credit rating if the loan is repaid in
a timely fashion. The second person, has a lesser status for credit reporting
value.
Credit records are accessible by telephoning your local credit bureau, and
requesting an appointment to view your credit file. In some provinces, you are
able to insert an explanation, of up to 500 words, in the case of a disputed
debt to tell your side of the story. This can be helpful if you didn't receive
satisfactory goods or services, and withheld payment for this reason.
Do you want your own credit rating? Ask to establish your own credit file.
Even if you are married, you can ask for your file to be included in a joint
file, having both of your credit files kept together but your credit ratings
earned separately.
Don't wait until you need credit to find out what is on your credit file.
Treat this file of information as you would a resume, and make sure it is a
positive, up to date look at your credit history.
 Article by Marg Spina
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