|
| |
CANADIAN CREDIT FILE - FAQ
Click Here Now to see your Canadian Credit Report
Credit File - Frequently Asked Questions
Top
Other Credit Reporting Topics
Obtaining a copy of your credit file on a regular basis is an important step in
managing your financial situation. Just as important is gaining an understanding
of other credit-related issues and resources. In this section, you can find
information about Equifax's privacy policies and practices, and consult our
Frequently Asked Questions for information on subjects such as fraud, credit
scoring, counseling and more. There are many reputable sources of information on
matters concerning personal credit.
What exactly is a credit file?
Your credit file is created when you first borrow money or apply for credit. On
a regular basis, companies that lend money or issue credit cards to you -
including banks, finance companies, credit unions, retailers - send specific
factual information related to the financial transactions they have with you to
credit reporting agencies.
The credit reporting agencies organize and store this information so that it can
be referred to in the future, with your consent. Your credit file contains all
the information that a credit reporting agency has received from companies that
have extended credit to you.
For example, it might include a listing of your credit cards or lines of credit,
along with a history of whether or not you have paid on time. If you have
declared bankruptcy, that fact will also appear. If you did not pay a bill and
your account was sent to a collection agency, that will show on your credit
file. In summary, your credit file is a report of your financial history and
performance with credit grantors.
Top
Why is my credit file important?
When you apply for credit or want to open an account, the credit grantor wants
to be sure that if they lend you money they will be paid back. The more your
credit file demonstrates that you pay your debts on time, the more desirable you
become as a potential customer.
If you have fallen behind in the past, a credit grantor wants to see how you
have been managing your debt since then. Your credit file also shows how much
you have already borrowed. Credit grantors want to evaluate your financial
capacity to make monthly payments. No responsible lender will want to over-lend
or encourage customers to take on more debt than they can pay back.
Top
What information does a consumer credit
report contain?
Here is a general overview of the different sections in a consumer credit
report:
| 1. |
Personal Identification |
| |
Contains key identification information, such as
your name, address, birth date and Social Insurance Number (SIN). |
| 2. |
Inquiries |
| |
Lists all individuals or organizations that have
requested a copy of your credit file in the past three years. |
| 3. |
Public Record Information |
| |
Contains information about secured loans,
bankruptcies and/or judgments. |
| 4. |
Third-Party Collection Agency |
| |
Contains information about any involvement with a
collection agency trying to settle a debt. |
| 5. |
Trade Information |
| |
Provides details of your credit transactions and
shows whether payments are being made. Each of these "trade" items is
evaluated by the credit grantor. |
| |
The evaluations are based on
industry standard ratings, the most
common of which use a range from R0 to R9. R0 indicates you are too new to
rate; R1 indicates that you pay within 30 days of billing or as agreed; R9
indicates a bad debt, collection or bankruptcy. |
| 6. |
Consumer Statement |
| |
This is where you can add a brief comment
about any information in your file. For example, if you have an R9 rating,
you may want to explain that you suffered a setback due to illness,
temporary unemployment or other extenuating circumstances. |
Top
How is this information gathered and who
keeps it?
Credit information is gathered by credit reporting agencies, sometimes called
credit bureaus. There are two major credit reporting agencies in Canada: Equifax
Canada Inc., and Trans Union of Canada, Inc. Governed by provincial and federal
laws, they store and maintain credit information about individual Canadians for
use by members of the credit reporting agency. These members include banks,
financing companies, auto leasing companies, credit card companies, retailers,
etc.
Credit grantors update individual credit files regularly by providing
information to credit reporting agencies about their customers' credit and
payment activities. This ensures that credit files remain up-to-date and as
complete as possible.
Other sources of the information contained in your credit report can include
collection agencies and public records from courthouses across the country.
Whether you make or miss a payment, this fact will be added to your file. When
you give permission to a credit grantor to look at your credit file, this
history is available for them to review.
Years ago, the gathering and storing of credit information was done manually -
credit bureau employees created actual paper files and updated them one at a
time. Now, credit grantors send data in electronic form to a highly efficient
and secure computer environment.
Top
How can I get a copy of my credit report?
To obtain your credit report,
Click Here Now to Get Your Report Online from Equifax
or call the two largest Canadian credit reporting agencies, Equifax
Canada Inc. 1 800 465 7166 and Trans Union of Canada 1 800 663 9980.
Once you have placed your request, the credit reporting agency will then mail
your report to you. It is recommended that you get your report from both
agencies to ensure accuracy.
Can I get my credit report on-line?
Consumers may obtain a copy of their credit report, plus credit score, and a
score analysis on-line in Canada, for a fee. Equifax Consumer Services Canada
provides consumers on-line, real-time access to their credit information.
Consumers provide personal information during the order process for their credit
information so that Equifax can verify their identity and immediately deliver
their credit report. The consumer information collected online may be used later
to provide relevant notifications and special information to each consumer.
Top
Who can access my credit file?
Equifax is the largest credit-reporting agency in Canada and receives over 40
million requests for file information each year. Federal and provincial laws are
very specific as to who can review your credit file and for what purpose. An
individual or company may only obtain a copy of your credit file with your
consent or after having told you that they will be reviewing your file. A
company must have a legitimate business reason and a permissible purpose, as
stated in government regulations, to obtain your credit file.
When you apply for a loan or credit card you are usually asked to complete and
sign an application form. An application normally includes written consent that
gives permission to the credit grantor to check your credit file when you first
apply and for as long as the account is open. In addition to your name, an
application often asks for your date of birth, your address and a previous
address if you've recently moved - all of which helps to locate your credit file
at a credit reporting agency.
Each time a member of the credit bureau requests your file, the request is noted
on your file as an inquiry. You can therefore see a complete record of who has
requested your credit file and when.
A credit reporting agency may only provide a copy of your file when the request
relates to the extension of credit, collection of a debt, housing rental, an
application for employment or for insurance purposes. Since your credit file
contains only factual information, it is important to remember that each of the
companies requesting your credit file will interpret those facts in its own way
to arrive at a decision.
Of course, you also have the right to
obtain a copy of your credit report.
Top
Why is some information on my credit file
outdated?
| • |
Employment |
| |
Employment information is reported from
applications for credit and therefore is not updated regularly. |
| • |
Balance |
| |
This reflects your balance on the date the
submitter last reported the information. Many credit grantors supply
information on a monthly basis, so the balance shown may not be your current
balance. |
| • |
Old account still reported |
| |
A credit file is a history of your payment
habits. All accounts, paid or unpaid, remain on your file for six years from
the date of last activity. |
| • |
Duplicate Accounts |
| |
There may appear to be duplicate accounts
reported in your credit file. This needs to be examined carefully, because
some credit grantors issue new account numbers with every loan renewal. |
| |
Also, when you report a credit card as lost or
stolen, your credit grantor will issue a new card with a new number,
resulting in a new item on your file. |
| • |
Accounts included in my bankruptcy still show
up in the credit file |
| |
All items included in bankruptcy remain on file
for six years from the date of last activity. |
Top
How can I make sure my credit file
information is accurate?
Request a copy of your credit file. If you check your credit file
periodically, especially before making any major purchases or applying for
credit, you can make sure there are no surprises ahead. If you believe your file
contains an inaccuracy, you can take steps to correct it. Simply provide
information about the disputed item to the credit reporting agency.
If you find unfavourable, but accurate facts in your file, you may be able to
prevent a potentially embarrassing situation by discussing this with the lender
when you fill out an application. You can also initiate immediate action to
re-establish good credit. You might consider adding a short qualifying
statement to your credit file to explain the circumstances surrounding the
negative information in your file.
How can I correct an inaccuracy in my
Equifax credit file?
First you will need to complete a Consumer Credit Report Update Form. Once
complete begin by contacting Equifax.
| 1. |
Telephone Equifax at 1 800 465 7166
between 8:00am and 5:00pm ET |
| 2. |
Write Equifax at: |
| |
Equifax Canada Inc. |
| |
Consumer Relations Department |
| |
Box 190 Jean Talon Station |
| |
Montreal, Quebec |
| |
H1S 2Z2 |
| 3. |
Send an e-mail request to Equifax:
consumer.relations@equifax.com |
| |
|
After Equifax receives your call, letter or e-mail request, they begin the
Dispute Resolution process.
First, they review and consider the information you have sent about your
dispute. If this initial review does not resolve the problem, they will continue
the investigation. This involves contacting the submitter of the disputed
information on your behalf to review the details. They will investigate and
report their conclusions. Based on their findings, Equifax may make changes to
your credit file. If the disputed information is correct, they will not make any
changes.
Equifax will send you a revised credit report if changes are made as a result of
the Dispute Resolution process.
They will also send your revised credit file to any company that requested your
credit file 60 days prior to the change. In some cases, it may be a period
longer than 60 days.
Top
What if I am still not satisfied with an
item in my file?
If you still do not agree with an item after it has been verified with the
submitter, you can send Equifax a brief statement explaining that you disagree.
They will add this statement to your credit file and it will be shown every time
your credit file is reviewed.
If you have added a comment, you have the right to ask Equifax to send your
revised credit file to any company that requested your credit file 60 days prior
to the change.
Important Note:
You do not need to pay a third party to obtain, discuss, review or make changes
to your credit report. You have the right to access your information and make
changes to your file if there is an inaccuracy or if you want to include a
comment.
It is impossible for a third party to make changes in your file if the facts
have been correctly reported. There are individuals and companies that claim
they can fix a bad credit file. This is not the case. If a file includes
accurate, yet negative information about your credit history, this information
cannot be changed. Information will only be changed when your file contains an
inaccuracy.
How long does Equifax keep information in
my credit file?
CREDIT INQUIRIES TO THE FILE: An Inquiry made
by a Creditor will automatically purge three (3) years from the date of the
inquiry. The system will keep a minimum of five (5) inquiries.
CREDIT HISTORY AND BANKING INFORMATION: A
credit transaction will automatically purge from the system six (6) years from
the date of last activity.
All banking information (checking or saving account) will automatically purge
from the system six (6) years from the date of registration.
VOLUNTARY DEPOSIT - ORDERLY PAYMENT OF DEBTS, CREDIT
COUNSELING: When voluntary deposit – OPD – credit counseling is paid, it
will automatically purge from the system three (3) years from the date paid.
REGISTERED CONSUMER PROPOSAL: When a
registered consumer proposal is paid, it will automatically purge three (3)
years from the date paid.
BANKRUPTCY: A bankruptcy automatically purges
six (6) years from the date of discharge in the case of a single bankruptcy. If
the consumer declares several bankruptcies, the system will keep each bankruptcy
for fourteen (14) years from the date of each discharge. All accounts included
in a bankruptcy remain on file indicating “included in bankruptcy” and will
purge six (6) years from the date of last activity.
JUDGMENTS, SEIZURE OF MOVABLE/IMMOVABLE, GARNISHMENT
OF WAGES: The above will automatically purge from the system six (6)
years from the date filed.
COLLECTION ACCOUNTS: A collection account
under public records will automatically purge from the system six (6) years from
the date of last activity.
SECURED LOANS: A secured loan will
automatically purge from the system six (6) years from the date filed.
(Exception: P.E.I. Public Records: seven (7) to ten (10) years.)
Top
Why do we need credit reporting?
Every day, Canadians purchase goods or services using credit. The decision to
extend credit is made by a "credit grantor" such as a bank or store. Most often,
this decision involves reviewing your credit file, which is obtained from a
credit reporting agency, such as Equifax. With your permission, credit grantors
review your credit file to determine your credit history and assess your
credit-worthiness.
Top
What is a rating?
Every piece of credit history information in your credit file is assigned a
rating by the credit grantor. The most common ratings are "R" ratings. These are
known as North American Standard Account Ratings and are the most frequently
used. The "R" indicates that the item being described involves revolving credit.
If you always pay on time, it will be coded an R1. If an amount was written off
because you never paid it back, it is coded R9. The R ratings are a coding
system that translates "on time", "one month late", "two months late", etc.,
into two-digit codes.
| Rating |
What it Means |
| R0 |
Too new to rate; approved but not used |
| R1 |
Pays (or paid) within 30 days of payment due date
or not over one payment past due |
| R2 |
Pays (or paid) in more than 30 days from payment
due date, but not more than 60 days, or not more than two payments past due |
| R3 |
Pays (or paid) in more than 60 days from payment
due date, but not more than 90 days, or not more than three payments past
due |
Top
| R4 |
Pays (or paid) in more than 90 days from payment
due date, but not more than 120 days, or four payments past due |
| R5 |
Account is at least 120 days overdue, but is not
yet rated "9" |
| R7 |
Making regular payments through a special
arrangement to settle your debts |
| R8 |
Repossession (voluntary or involuntary return of
merchandise) |
| R9 |
Bad debt; placed for collection; moved without
giving a new address |
Other rating indicators that might be found on a report are "I" for installment
credit or "O" for open credit line.
Top
Does my file tell me how I will be rated?
Your file will not tell you how an individual credit grantor will evaluate you
as a potential customer. Each credit grantor has its own policies for making
decisions about individual customers.
Top
What is an "inquiry"?
An "inquiry" shows the name of the company or individual who has requested your
credit file. Each inquiry is listed on the credit file so that you know who has
obtained a copy of it. In addition to checking your file when you first apply
for credit, credit grantors typically request regular updates of your credit
file after an account has been opened, when it is being renewed or for limit
increases. These are listed as "update" inquiries in a separate section of your
credit file. They are for your information only and are not displayed to other
credit grantors.
Top
How can I protect my identity?
Identity fraud is on the rise, and it can happen to anyone. It can happen to
you. Taking steps to limit your vulnerability to identity fraud is the best
method of protecting yourself and safeguarding your credit file.
We've put together some tips to help you keep from becoming an identity fraud
victim.
Limit the potential for fraud while using a credit
card
When your credit cards are lost or stolen:
 | Keep a list of the names, account numbers and the expiration dates of your
cards in a safe place. This will aid you when alerting your credit grantors
about a lost or stolen card.
|
| Call your credit grantors immediately upon discovering your cards are
missing. Most have 24-hour toll-free numbers for this purpose. If you re-open
the account, ensure they have your correct address. |
When using your credit cards:
| Carry only the identification and credit cards you need when traveling,
whether locally or out of town.
|
| Do not carry your credit cards with your chequebook.
|
| If your chequebook is lost or stolen, call your bank. Inform them of the
cheque numbers missing.
|
| Sign your credit cards in permanent ink as soon as you receive them.
|
| When making a purchase, keep your card in view at all times. Retrieve it
as soon as the transaction is completed and make sure it is your card.
|
| Do not sign a blank charge slip.
|
| Always save your receipts, never leave them behind. Avoid saying your
account number aloud if others can hear.
|
| Only provide your ID and credit card information over the phone to
reputable companies where you have initiated the call.
|
| If you receive a call from someone claiming to represent your credit card
issuer and the caller asks for your account number, do not provide it. If the
caller is employed by the issuer, they will know your number. |
If your Social Insurance Card is missing, contact your employer or your local
Human Resources Development Canada (HRDC) office immediately.
If your Driver's License is missing, contact your local driver and vehicle
license issuing office. You should also report it to your local police.
How to manage your credit card statements:
| Check your statement as soon as it arrives to ensure the charges are
correct.
|
| Keep statements in a safe place. They contain sensitive information.
|
| Before discarding old statements, even of closed accounts, rip them into
small pieces or shred them.
|
| If your statement does not arrive, call your credit card issuer. |
Limit the potential for fraud when using ATMs and
PINs
| Shield your numbers while using the ATM.
|
| Never leave your receipts behind.
|
| Choose a PIN that is unique. Use a number other than your birthday, Social
Insurance Number or other obvious number.
|
| Never write down your PIN in your chequebook or on your cards. It is best
to memorize it. |
Limit the potential for fraud when using the mail
service
| If your mail stops arriving, check with Canada Post. Sometimes a change of
address is submitted by a fraud perpetrator in an attempt to get your mail, or
steal your identity.
|
| If you apply for a new credit card and it does not arrive, contact the
issuer. |
Top
What can I do if I suspect I am a victim
of identity fraud?
If you have lost or had your personal identification stolen, or if an
institution has contacted you regarding suspected fraud activity, please call
Equifax toll-free at 1 800 465 7166 or 514 493 2314. They will add a statement
to your file to alert credit grantors that you may be a victim of fraudulent
activity.
This may mean that the next time you apply for credit, you may be questioned
more thoroughly. The credit grantor wants to make sure that you are, in fact,
the person you say you are. The additional questions that might come your way
are asked because of the "fraud alert" on your file.
Top
Why was I denied credit?
Equifax neither grants nor denies any application for credit. They simply
provide a factual account of your credit history to credit grantors. The credit
grantor reviews this information and makes an independent decision based on its
own policies. You can call Equifax to establish whether there was negative
information on your credit file that may have prevented you from receiving
credit.
Top
Does Equifax use consumer credit
information to market consumer products and services, or sell my name to direct
mail companies?
Equifax does not do this.
Top
How does divorce affect consumer credit?
A divorce decree does not supersede the original contract with the creditor, and
does not release you from legal responsibility on your accounts. You must
contact each creditor and seek their release of your obligation. Only after that
release can your credit history be updated accordingly.
Top
What is a credit score?
A credit score is a numeric value assigned by credit grantors to indicate how
likely someone is to pay back a loan or credit card according to the agreed
repayment terms. It is an indicator of the level of risk that a borrower might
represent. It is used as a predictor of future performance.
Much like a life insurance company that reviews your medical history to
determine the insurance risk when you apply for a life insurance policy, credit
grantors review your financial history to determine your credit risk. Credit
grantors often use an automated scoring process to help make that risk
assessment.
A credit score is only one piece of information credit grantors use when
evaluating your application for credit. Some credit scores may be based solely
on information in your credit file. Other scores may be based on a combination
of credit file information and other information you supply on your credit
application. Generally, scores use your past credit history to help predict how
you might manage credit in the future.
Top
Is the credit score part of my credit
file?
The credit score is not part of your credit file.
Top
How is my credit file affected if I was a
co-signer on a loan and the person on whose behalf I co-signed fell behind in
their payments?
If you are a co-signer to a loan, the activities related to that loan will
usually be reported by the credit grantor on both the file of the primary
borrower and the co-signer. However, reporting policies may vary amongst credit
grantors.
Therefore where there is a default in payment, a note indicating that the loan
is in default will appear on the credit file of the co-signer.
Top
Can I get advice and assistance if I have
credit problems?
Yes, you may obtain assistance from various organizations. For example, Consumer
Credit Counseling Services (CCCS) are non-profit organizations that offer free
or low-cost financial counseling to help people solve their financial problems.
Top
How can I establish and maintain a good
credit rating?
There are a few simple ways to keep a solid credit rating. First, pay your bills
promptly and always meet payment due dates. Borrow only the amount you can
afford to repay. Draw up a budget to control your spending. If you have debts,
pay them off as scheduled or even ahead of schedule. And finally, review your
credit file regularly to stay informed about the details in your credit file.
Top
Should I go to a Credit Repair Clinic to
fix my poor credit rating?
You may see advertisements for Credit Repair Clinics in the classified sections
of newspapers, with claims that they can "fix" bad credit reports, for a fee.
Only responsible credit practices over time can improve a poor credit history.
Credit counseling organizations are not the same as Credit Repair Clinics, and
can offer you professional advice on how to improve your credit practices.
Top
What if I am planning to do a major
renovation or make a large purchase; can I protect myself from dealing with a
company that may not be reputable or commercially viable?
Equifax has the single largest commercial credit database about Canadian
companies. They have credit reports on over 2 million businesses. You can order
a commercial credit report about a company with which you are planning to do
business.
Click Here Now to see your Canadian Credit Report
|
Credit File FAQ
