How to read your TransUnion credit report?

TransUnion Credit Report

We’ve been talking regularly about the credit report. It’s a tricky subject because the score is shrouded in mystery and confusion reigns when you’re trying to optimize your portfolio. Do I have to apply for cards on the same day? What happens if I close my card too fast? etc.

There are two credit scoring agencies in Canada: TransUnion and Equifax. You can request your credit report for free, so you will get a hard copy of your credit report but not your score.

TransUnion offers a $19.95 monthly subscription to access your score and real-time credit report details. This subscription is without obligation so you can stop it at any time.

Open an account to get your TransUnion credit report

After you open your account, you will be taken to your scoreboard displaying not only your score but also essential information from your TransUnion credit report. The first section concerns your subscription and allows you to manually update your score. You can do this at any time, you will also receive an email if it changes.

Let’s explore the rest of the topics.

My TransUnion Credit Rating

It’s the most prominent information. This compares your score to the rest of the Canadian population. A mile hoarder can sometimes fall below 750 but if you are planning a mortgage it is better to stay above it. But the score doesn’t tell the whole story, see our mortgage article for more information.

Alerts

You will receive an email when a new history request is made. Another one can be raised on your first credit card statement, when the financial institution reports it to TransUnion. Finally, a closed account can also trigger an update.

Debt analysis

We can’t say it enough, but the mile hunter must not go into debt to play the points game. So you have to pay your credit cards on every due date! This section allows you to see your debt ratio. This is relative because it is based on the gross monthly income you declare when you register. The high limit considered dangerous is 44%.

Summary

Next comes the “ingredients” of your TransUnion credit score.

It has:

• Balances, the amount itself doesn’t say much. The “credit mix” will give a more or less good image.
• Minimum payments due
• Requests made on your file, too many requests can be a sign of a problemn meaning you open accounts to pay others
• The number of accounts and the accounts opened. It is a pity that TransUnion does not display the average age of your accounts because this is one of the criteria of the score.
• Overdue accounts or derogatory accounts, which we want to avoid.

TransUnion credit report requests

This is where requests for your credit record history appear. Some banks like American Express use TransUnion and others, like CIBC, use Equifax. Please note, however, that institutions will declare account over once it is opened at both offices.

Some organizations may refuse you a card because you have done too many applications in a short period of time. This page therefore contains interesting information.

Personal information

Less important than the other sections, but attention should be paid if any of the information is wrong. Previous addresses are sometimes used to identify you when applying for a new credit card .

List of accounts

This is where we will find the accounts declared by the banking institutions. There are different types of accounts, the first being the most classic: revolving accounts, i.e. credit cards. You see a balance column which is the amount on your statement, and the payment which is the minimum amount to pay.

The other type are installment accounts, i.e. accounts with a due date. This is where you’ll see car loans, appliance store loans. Some mortgages may also be included.

Finally, the other accounts include cell phone lines or Internet service providers. It is always important to pay your bills even if you have a dispute with these companies. A prolonged absence of payment, even for a “trivial” amount, can have very bad consequences for your credit score.

American Express shows up here, because some of the American company’s cards are charge cards whose balance must be paid in full at each statement.

This table also allows you to check the details of an account to see if it is properly closed.

Conclusion

TransUnion has a nice interface and the information is well presented, so you don’t get lost. It’s important to request your TransUnion or Equifax credit report once a year, but if you’re curious to see what’s in it, your report is just a click away.