Humans tend to assume that information coming from higher entities is right. However, individuals with such thoughts should recall how many times in their lives they have made mistakes, thereby recognizing that errors are possible. Before you apply for bad credit car loans, you should thoroughly examine your credit report to ensure that it does not contain errors deleterious to your application.
Check Identifying Information
You might think that an error in your name or address has nothing to do with your credit score. While such an issue might be a mere typo, it could also mean that financial matters have been incorrectly attributed to you. For example, the report might have attributed someone else's late payments to you, which could hurt your ability to receive car loans.
Keeping a personal record of your payment history for all loans, credit cards and so forth is important so that you can make sure that it matches up with your credit report. Imagine that your credit report says that you have consistently made late payments on a certain bill when you know that is not the case at all. Resolving this matter before you apply for car loans in Canada is necessary. You want to get the best opportunity with the car loan, and a history of late payments is likely to hurt that.
Open and Closed Accounts
You also want to ensure that no accounts have been falsely attributed to your name. On the credit report, you should have the ability to see your currently opened accounts and ones that you have closed in the past. Make sure that all of these accounts actually belong to you.
If lenders look at your credit report and see large amounts of debt in relation to the amount of total credit you have, obtaining another loan might prove to be a problem. Take out a calculator. Add up the total debt to see if your calculations match what is on the credit report.
Errors on your credit report can make a mess for you. In fact, the report might contain errors that are seriously lowering your credit score, making obtaining other opportunities challenging or impossible. If you do find errors on your report, you should speak with the reporting agency immediately.