Because most Canadians don't know much about their financial situation as viewed by their bank manager. If she says the bank can't loan you any money because of a poor credit rating, how can you tell what her decision is really based on? As a result, it can also be very intimidating.

Fortunately, with a proactive approach using five easy steps your can successfully tune-up your Canadian credit profile before making your next trip to your bank or credit union.

1. Just the facts, ma'am

Get a clear picture of your credit profile. How? Order your Canadian credit report, credit score and debt analysis online from Equifax Canada and TransUnion Canada to view complete snapshots of your current credit rating. I recommend getting reports from both national credit agencies since I've found different mistakes in each report. Examine the data closely to see that it's all correct! Pay special attention to:

    * Wrong addresses
    * Wrong Social Insurance Number (SIN)
    * Signs of identity theft
    * Errors in your credit accounts
    * Incorrect late payments
    * Unauthorized inquiries by third parties

2. Write the wrongs

It is crucial that you immediately contact any creditors who submitted incorrect information or send letters of dispute to the credit reporting agency to have errors on your credit profile corrected. I discovered that my TransUnion credit report has two wrong missed payments from my credit union since I had never ever missed any payments. I simply called my local branch manager and had her correct the errors with TUC ... it was quick, easy and painless. It also helped improve my credit rating.

3. Credit Etiquette

Perhaps there are legitimate problems identified in your credit reports. Perhaps a missed credit card payment, or too many late payments. So make a plan that corrects this misbehaviour.  For example, if you've had a hard time paying bills on time, enroll in an automated payment service. If your debt levels are above 50% of your available credit limit, craft a payment plan to reduce your outstanding balances. Establish goals for improving your credit and celebrate the milestones you achieve.

4. Check, Re-Check and Check Credit Again!

Check your credit reports again 30-60 days after disputing errors and changing your lifestyle to see how much your credit rankings have improved. If any of the disputed errors remain, contact the credit grantor again to continue your dispute and determine if the mistake can be erased from your credit history. If you want to tell your side of the story, forward a written request to either EquifaxCanada or TransUnions Canada credit reporting agencies to have a consumer statement added to your credit files.

5. Monitor your credit

There is perhaps no worse scam in Canada than identity theft. Once your good credit name is stolen, it can be years repairing the damage caused by con artists. To guard against fraud and keep your credit rating healthy, sign up for Canada's only credit monitoring service from TransUnionCanada . TUC will quickly alert you to any changes in your credit profile, for example if someone applies for a credit card in your name. Keep copies of your old credit reports and letters of dispute in a safe place for future reference. Make a plan to evaluate your progress quarterly.