Credit Bureaus
Credit bureaus are "clearing houses" of information regarding consumers' use of credit. Anyone who has ever
had a credit card, loan or mortgage has a credit report on file with a credit bureau. Creditors make regular reports
to the credit bureau regarding how their customers handle their accounts - whether they pay on time, and if not,
how far behind they are with their payments.
Credit files contain such information as your name, address, age, social insurance number, marital status, spouse's
name, number of dependents, occupation and employment history. They do not contain other personal information about
you. Most importantly, they contain information about how you have handled your debt obligations, including any judgments,
garnishments or bankruptcies which might be of interest to a lender from whom you are trying to borrow money.
To determine if the information in your credit report is accurate and up-to-date, you may contact the credit bureau
for a copy of your file. Some credit bureaus do not release a written copy, but will give you the information verbally.
You must give a third party permission to look at your credit file, as is usually done when you apply for a loan,
credit card, mortgage, rental accommodation, car lease, insurance, and some jobs.
If there is an error recorded on your credit file, you may notify the credit bureau and they will attempt to correct
it. Should your records differ from what a creditor has reported, you may be required to provide additional information
and documentation. If there is a dispute, the credit bureau can advise you as to your rights.
Most information regarding your credit history is on your file for seven years. Therefore, for seven years following
placement of a debt with a collection agency, judgment being filed against you, or bankruptcy, anyone looking at
your credit file will be able to see that you did not fulfill your obligations to previous creditors. Even if you
are a couple of months late with a payment, that will show to anyone looking at your file in the future.
In addition to negative information appearing on your credit file, positive information is reported in the same
manner. If you make payments on time and have no late payments, judgments or bankruptcies on your file, this can
help you with future credit, accommodation or employment applications.
Remember, your credit file is a history of how you have handled the privilege of credit. If you are responsible
and use it wisely, your credit report can be a useful tool. If not, it may prevent you from obtaining something that
is important to you.
If you live in London, you can find out what is on your credit file by calling Equifax Credit Bureau in Montreal
at 1-800-465-7166. The recorded message will give you an address to write to and a list of what to include in your
request. They will mail you a copy of your credit file within two to three weeks.
You may also write to:
Equifax Canada Inc.
7171 Jean-Talon East
Anjou, PQ H1M 3N2
1-800-465-7166
or:
Trans Union LLC
Consumer Relations
709 Main Street West
Suite 3201
Hamilton, ON L8S 1A2
1-800-663-9980
And include the following information:
- full name and former name (if applicable)
- current address and previous address
- date of birth
- social insurance number
- photocopies of two pieces of identification
- daytime phone number where you can be reached
If you live outside London, check with your local credit bureau (listed in the yellow pages) to determine
how to obtain your credit file.
Credit Ratings
Your credit report will contain a code for each debt you have had in the last seven years. Below is an explanation
of what the codes mean:
R0 |
Too new to rate; approved but not used. |
R1 |
Pays within 30 days of billing, or pays as agreed. (This is the rating you want!) |
R2 |
Pays in more than 30 days but less than 60, or one payment past due. |
R3 |
Pays in more than 60 days but less than 90, or two payments past due. |
R4 |
Pays in more than 90 days but less than 120, or three or more payments past due. |
R5 |
Account is at least 120 days past due but is not yet rated "R9". |
R6 |
There is no R6 rating. |
R7 |
Paid through a consolidation order, consumer proposal or credit counselling debt management program. |
R8 |
Repossession. |
R9 |
Bad debt placed for collection, judgment or bankruptcy. |
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