What is a Credit Bureau?

A credit bureau is a company that collects your credit history from banks, financial institutions, courthouses, and the Office of the Superintendent of Bankruptcy.

Canada has two major credit bureaus: Equifax and TransUnion. They compile this information into credit reports that help lenders assess your creditworthiness.

Credit bureaus don't make lending decisions

Credit bureaus only collect and provide information. They don't decide if you get approved for loans or credit cards. That choice belongs to the lender, who uses their own criteria to evaluate your application.

Where credit information comes from

Not all lenders report to both credit bureaus, so your Equifax and TransUnion reports might contain different information. Creditors update the bureaus with your:

• Account status

• Payment history

Credit scores can vary because different scoring models are used, even when looking at the same information.

Information found in your credit report

Credit bureaus collect:

• Personal details (name, address)

• Credit account information ("tradelines")

• Credit inquiries

• Public records and collections information

How your credit information gets used

Banks and credit card companies use your credit report to make lending decisions. Other companies with "permissible purpose" can also check your credit.

Credit bureaus help banks and insurance companies identify consumers for pre-approved credit card and mortgage refinance offers.

Getting your free credit report

You have the right to request free credit reports from both major bureaus.

Checking your report regularly helps ensure your information is accurate. Wrong information can hurt your credit scores and unknown entries might signal identity theft.

You can easily check your credit report for free on the KOHO app.

What to do about mistakes

If you find errors or information you don't recognize on your Equifax credit report, you can file a dispute by phone, mail, or fax. If you suspect fraud, mention this when filing your dispute and contact the company that reported the information.

Your credit bureau report matters

Your credit report affects your financial life in many ways. By understanding what credit bureaus do and regularly checking your reports, you can catch errors early and maintain good credit health.

Remember that you're entitled to free reports, and don't hesitate to dispute any information that seems wrong.