I was thrilled when I was finally able to pay off the last of my student loan. About a year later I started getting calls from a collections agency asking why I had stopped making payments on that loan. Apparently, there had been a mistake at the bank and my file ended up in the “collections” pile instead of the “paid off” pile.
You’ve probably heard it said before, but this is exactly the reason why it’s important to periodically check your credit report for mistakes, especially if you’re planning to apply for a large loan or mortgage. While mistakes do happen, it’s up to you to correct them.
In Canada, Trans Union and Equifax are the two companies who handle credit reporting. Both companies will let you check your credit report and score online for a fee, but for free you can get a report sent to you by regular mail.
It’s important to give yourself enough time to check and fix your credit score before applying for your home mortgage.
