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Frequently Asked Questions
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FILE UPDATED TIME 19/12/2006 2:02:04 PM
TOTAL READ COUNT 1333
Question:
Why does a financial institution always ask for so much personal information before it makes a decision about granting a loan or a mortgage, or issuing a credit card, or increasing the limit on a card?
Answer:
The financial institution must be sure that you can repay your debt and that your identity is confirmed. To evaluate whether an applicant for a credit card, a mortgage or a personal loan is creditworthy, the institution requests information on matters such as your income and the loans you currently have, and asks for your consent to obtain, verify and use the content of your credit report to check your credit history.
Resource(s):
-
Banks and Your Privacy
(Canadian Bankers Association) -
Understanding Your Credit Report and Score
Classification of this FAQ:
| Category | Sub-category |
|---|---|
| Credit cards | Applications |
| Privacy | |
| Consumer services | Applications |
| Privacy | |
| Loans | Applications |
| Privacy | |
| Mortgages | Applications |
| Privacy |
Related Question(s):
- Can I refuse to provide my financial institution with information about my income when I renew or apply for a mortgage?
- How can I get more information about my credit report?
- How does the amortization period affect the interest cost I pay on my mortgage?
- What is a reverse mortgage?
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