“I advise clients to do their own yearly credit checks and I’ve had a very high success rate,” Omer Quenneville of Centum Regal Financial told MortgageBrokerNews.ca. “I do seminars on getting a first mortgage and I tell people to do their own once a year because it’s free; I even offer to send the forms to them and I’ve had hundreds of people sign up for it.
“They need to know what’s on that file because if a mistake is made, getting it corrected can be done a lot quicker and it’s easier to remedy.”
Quenneville estimates that 10 per cent of his clients encounter inaccuracies and that this simple step not only helps clients rectify the situation – it also provides a great point of contact for him to keep the communication open.
Credit bureau mistakes are increasingly frustrating for brokers, with some reporting deals almost falling apart as a result. And, as a result, an increasing number of industry players are giving the same advice Quenneville has for years.
One broker has encountered several issues with one type of unsecured consumer credit that once delayed a deal by a month.
“Credit file inaccuracies happen quite regularly – especially with Visas through a bank,” Kevin Babin of Dominion Lending Centres
NuVision Mortgage Group told MortgageBrokerNews.ca. “Some client files have shown a balance on Visa cards that have been inactive for a long time when the balance should be zero; it slows down the process for getting a mortgage.
“Some underwriters will see it’s inactive and not consider it but others require it to be rectified first, which can take three to four weeks.”
Clients who check their own credit once a year are better equipped to quickly deal with bureau inaccuracies, says one broker who lends a helping hand.