Credit bureaus are independent companies that collect, store, and share information about your credit history with lenders, landlords, and other authorized parties. In Canada, there are two main credit bureaus:

The Two Major Credit Bureaus

• Equifax Canada: One of the largest credit reporting agencies globally
• TransUnion Canada: The other major credit bureau serving Canadians

What Credit Bureaus Do

• Collect information: From lenders, credit card companies, and other financial institutions
• Create credit reports: Detailed history of your borrowing and repayment behavior
• Calculate credit scores: Numerical representation of your creditworthiness
• Provide reports: To authorized parties when you apply for credit
• Investigate disputes: When you challenge information on your report

Your credit score is a three-digit number that ranges from 300 to 900 in Canada. It represents your creditworthiness and helps lenders decide whether to approve your applications.

Credit Score Ranges

Factors That Affect Your Credit Score

Factor	Weight	What It Means
Payment History	35%	Whether you pay bills on time
Credit Utilization	30%	How much credit you use vs. available
Length of Credit History	15%	How long you've had credit accounts
Types of Credit	10%	Mix of credit cards, loans, mortgages
New Credit Inquiries	10%	Recent applications for new credit

Your credit report contains detailed information about your financial history. Understanding each section helps you identify areas for improvement.

Personal Information

• Full name and any aliases
• Current and previous addresses
• Date of birth
• Social Insurance Number (SIN)
• Employment information

Credit Accounts

• Account details: Type, balance, credit limit
• Payment history: On-time, late, or missed payments
• Account status: Open, closed, or in collections
• Date opened: When you first got the account

Credit Inquiries

• Hard inquiries: When you apply for credit (affects your score)
• Soft inquiries: Background checks that don't affect your score
• Inquiry date: When the inquiry was made
• Inquiring company: Who requested your credit report

Public Records

• Bankruptcies
• Consumer proposals
• Court judgments
• Tax liens

Free Annual Credit Reports

You're entitled to one free credit report per year from each bureau:

Equifax Canada

• Online: Create an account at equifax.ca
• Phone: 1-800-465-7166
• Mail: Send request with identification documents

TransUnion Canada

• Online: Create an account at transunion.ca
• Phone: 1-877-713-3393
• Mail: Send request with identification documents

Paid Credit Monitoring Services

For more frequent access and additional features:

• Monthly reports: Updated credit scores and reports
• Credit alerts: Notifications of changes to your report
• Identity monitoring: Protection against identity theft
• Credit simulators: See how actions might affect your score

Quick Wins (30-90 days)

• Pay down credit card balances: Reduce utilization below 30%
• Pay all bills on time: Set up automatic payments
• Dispute errors: Challenge incorrect information on your report
• Become an authorized user: On someone else's good account

Medium-term Strategies (3-12 months)

• Keep old accounts open: Maintain length of credit history
• Diversify credit types: Mix of cards, loans, and lines of credit
• Limit new applications: Only apply when necessary
• Pay more than minimums: Reduce balances faster

Long-term Building (1-3 years)

• Consistent payment history: Never miss a payment
• Gradual credit increases: Request limit increases annually
• Monitor regularly: Check reports for changes or errors
• Be patient: Good credit takes time to build

Identity Theft Prevention

• Secure your SIN: Never carry your SIN card in your wallet
• Shred documents: Destroy papers with personal information
• Monitor accounts: Check statements regularly for unauthorized activity
• Use secure networks: Avoid public Wi-Fi for financial transactions
• Be cautious online: Don't share personal information via email or phone

Credit Fraud Alerts

If you suspect fraud, you can place alerts on your credit file:

• Fraud alert: Requires lenders to verify your identity
• Credit freeze: Prevents new accounts from being opened
• Identity verification: Additional security measures

What to Do If You're a Victim

1. Contact credit bureaus: Place fraud alerts immediately
2. File a police report: Get an official record of the theft
3. Contact affected creditors: Close compromised accounts
4. Monitor closely: Check reports frequently for new fraudulent activity
5. Keep records: Document all communications and actions taken

How often should I check my credit report?

Check your credit report at least once per year from each bureau. If you're actively working on improving your credit or have been a victim of fraud, check more frequently.

Will checking my own credit report hurt my score?

No, checking your own credit report is a "soft inquiry" that doesn't affect your credit score. Only "hard inquiries" from lenders impact your score.

How long does it take to improve a credit score?

Minor improvements can be seen in 30-90 days, but significant improvements typically take 3-6 months of consistent good habits. Building excellent credit can take several years.

Can I remove negative information from my credit report?

You can only remove information that is incorrect or outdated. Accurate negative information must remain for the legally required time period (usually 6-7 years).

What's the difference between a credit report and credit score?

A credit report is a detailed history of your credit accounts and payment behavior. A credit score is a three-digit number calculated from the information in your credit report.