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How long does collection stay on your credit report in Canada?
When it comes to managing your finances, your credit report is one of the most important documents you have. Credit reports help lenders make decisions about whether or not to approve individuals for credit. Maintaining a good credit score can be challenging. If you have missed payments or have fallen behind on your debts, it's likely that the debt has been sent to a collection agency. It is important to be aware of how long collections stay on your credit report in Canada, as this can have a major effect on your credit score.
Collection reported on your Credit Report in Canada
In Canada, collections will stay on your credit report for 6 years from the date of the first delinquency. This means that if you are unable to make payments on a debt, it will remain on your credit report for 6 years, no matter what. It is important to note that this timeline applies to both of the major credit bureaus (Equifax and Transunion).
It is also possible to have a collection removed from your credit report before the 6-year timeline is up through a process known as debt settlement. In a debt settlement, you negotiate with the collection agency to have the debt removed from your credit report in exchange for paying a reduced amount of the original debt. This process is only available if the collection agency agrees to it.
It is also important to note that even when collections are removed from your credit report, they will still appear on your credit report. This is because the information is still considered accurate and must be reported.