You and Your Credit
Record You and Your Credit
Record
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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