Ask Your Lender if They Report to a Canadian Credit Bureau

creditWhether you are taking out a mortgage, a home equity loan, a business loan or a loan for personal reasons, you need to be leery of coming into contact with the wrong type of lender. How the lender has conducted business in the past is a good metric to see how they will conduct business with you. Doing your homework on the front end is no guarantee of a flawless experience but it does bode well.

One sure sign that a lender is doing things the right way is when they report to a Canadian credit bureau. Does your lender report to a Canadian credit bureau? How does that impact what will happen with your loan?

Lenders who report to a Canadian credit bureau have a leg up on those who don’t. Unsurprisingly the amount of default by lenders who report to credit bureaus is far lower than those who do. When you are working with a lender who does not report to a credit bureau, you don’t really know what you are going to get. Many of the non-reporting companies will say things like they are “unrestricted” by credit bureau oversight. But when you are talking about huge amounts of money, or even smaller amounts of money, being taken out in your name, a little bit of oversight isn’t a terrible thing.

Lenders who report to a Canadian credit bureau are also going to be looked upon more favorably in the future by other lenders down the road. If you take out a loan, say a car title loan, from a reporting lender and successfully pay this loan back in the time allotted, you will be looked at far more favorably for a home down the road.

Being a “good credit risk” involves doing things by the books over a protracted period of time. Making your loan payments on time, according to the loan agreement will put you in a good position when it comes time to take out future loans.

Another thing about choosing a lender who is reporting is your credit score will be impacted by this reporting. If you do everything you are supposed to and make your loan payments on time, every month, you will benefit from this behavior. If you don’t pay back a reporting lender in the proper manner, your credit score will suffer.

If you choose to take out a loan with a non-reporting lender your credit score may actually suffer. Even if you pay back your loan on time with a non-reporting member, no one will know about it! Your lack of activity while dealing with a non-reporting member may impact you in even deeper ways. Consider profiles of two credit applicants; one has been working with a reporting lender and has done everything as they should. One has been working with a non-reporting member and has no activity to analyze. In a world with only so much money, who do you think the lender will go with?

If you need to find a lender who is in compliance with a Canadian credit bureau for a personal loan, cat title loan or mortgage, turn to Fast Access Finance. Our team can help with all your loan needs and related financial questions!