Credit Facts From TransUnion
Credit is a mainstay of mortgage lending. If you want to learn more about credit, TransUnion has a good website with Q&A's. Here's a sampling of its many facts and tips...
- If you co-sign a loan and the primary borrower doesn't pay on time, it will show up negatively on your report as well. (Keep that in mind if you get divorced!)
- Closing older accounts generally makes your credit history shorter and often hurts your credit score.
- Missing a payment is no joke. Even if you pay off an account that's over 30-days past due, it will stay on your credit report for six years from the date you missed the payment.
- Debts reported as included in a debt repayment (or credit counseling) program will be removed from your file two years after the date the program was satisfied.
- Consumer proposals and all accounts reported as satisfied through the proposal will be removed from your report three years after the date you satisfied the proposal.
- Bankruptcies remain on your credit file for 6-7 years after discharge, depending on which province you live in.
- Collections remain on your file for 6 years after the date of default.
- Judgements remain for 6-7 years, except in PEI where it's 10 years.
Gail V.O. has a good post on why not to close old credit card accounts... Link
Posted by: Canadian Mortgage Trends | September 27, 2008 at 02:54 PM