What is a Credit Report?

A credit report is your financial health record. It shows how well you handle money and pay back what you owe.

Banks, landlords, and even some employers look at this report when deciding whether to work with you.

What's in your credit report?

Your credit report contains:

• Basic details about you (name, address, SIN, birth date)

• Your credit history (how you've paid loans and credit cards)

• Public records that affect your finances (bankruptcies)

• A list of who has checked your credit

• Other financial information like collections

What you won't find in your report: cash purchases, business accounts (unless you're personally responsible), medical history, ethnicity, political views, or criminal records.

What are credit bureaus?

Credit bureaus like TransUnion and Equifax collect information about how you manage credit. They get this information from lenders and create reports that help businesses decide whether to give you credit.

This system makes buying on credit faster and easier for qualified people.

How information gets on your report

Lenders send updates about your accounts to at least one of Canada's two credit bureaus. Since not all lenders report to both, your reports might differ slightly between bureaus.

Why credit reports matter

Your credit report helps companies judge if you're likely to pay back money. It's checked when you apply for loans, credit cards, apartments, and sometimes jobs.

How long information stays

Positive information stays up to 20 years. This helps lenders see your good track record, even if you have little current credit.

Negative information like late payments and collections drops off after 6 years.

Bankruptcies and judgments stay for 6-10 years, depending on your province. Multiple bankruptcies stay for 14 years after discharge.

Who can access your report

Only organizations allowed by law can view your credit report. Most need your consent first. This includes lenders, debt collectors, landlords, employers, and insurance companies.

You always have the right to see your own report.

Understanding inquiries

When someone checks your credit, it creates an inquiry on your report. Credit-related inquiries (when you apply for loans or credit cards) may affect your credit score.

Other inquiries like account reviews by existing creditors, identity checks, or when you check your own report - don't impact your score.

Adding your side of the story

You can add a statement to your credit report explaining any issues. This stays for six years and might help lenders understand special circumstances behind negative information.

Checking your report

Look at your credit report at least once a year to make sure it's accurate. If you're planning big financial moves like buying a house, check your report a few months ahead so you have time to fix any problems.

Taking control of your financial story

Your credit report tells your financial story to the world.

By understanding what's in it, checking it regularly, and addressing any issues promptly, you can take control of your financial reputation.