Difference between revisions of "Taking Charge of Your Credit Report"

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{{REVIEWEDPLS | reviewer = [https://leighco.ca/wendy-andersen Wendy Andersen], Digby Leigh & Co. and Casey Harris, Barrister & Solicitor|date= February 2020}} {{Dial-A-Law TOC|expanded = money}}
Your credit report shows your history of paying bills and borrowing money. It’s used to calculate your credit score. Here are key things to know about how credit reports work.


{{Dial-A-Law Blurb}}
==What you should know==
===Where your credit report and credit score come from===
Say you open a new line of credit at the bank. Or you’re late paying your phone bill. For events like these, the bank or business you’re dealing with reports the information to a '''credit reporting agency'''.


{{Dial-A-Law TOC|expanded = credit}}
There are two main credit reporting agencies in Canada: Equifax and TransUnion. They gather your information into a '''credit report'''.
A credit report shows your history of paying bills and borrowing money. Banks and others considering doing business with you look at your credit report to decide whether you’re trustworthy.  


==Understand your legal rights==
You’re entitled to a free copy of yours. We offer guidance on how to get it. See [https://www.peopleslawschool.ca/ordering-credit-report/ ordering your credit report].


===You have the right to see your credit report for free===
The credit reporting agencies plug your credit information into mathematical formulas to come up with your '''credit score'''. A high credit score is good. It means you’re a good bet to lend money to — because you’re seen as likely to pay it back.
A '''credit report''' contains details of a person's history of paying bills and borrowing money, and other information about them. Credit reports are prepared by '''credit reporting agencies''', also called credit bureaus. The two main ones in Canada are [https://www.consumer.equifax.ca/ Equifax] and [https://www.transunion.ca/ TransUnion]. These agencies collect information from banks and businesses, and from public documents like court and marriage records.
Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2003-c-63/latest/sbc-2003-c-63.html#sec23_smooth law in BC], you have the right to see your credit report. The credit reporting agencies must mail you a free copy if you ask. You can call Equifax toll-free at 1-800-465-7166 or TransUnion at 1-800-663-9980.


===Your credit score is not part of your credit report===
===Your credit report includes credit information===
Credit reporting agencies use a formula to turn the credit information they have about you into a '''credit score'''. Your score, also called your credit rating, can range from 300 to 900. A high score is good.  
Your credit report is really the story of you and your money. Your history of borrowing, paying back, and covering your bills. The moment you get your first credit card or take out your first loan, the credit reporting agencies open a file on you.


You won't see your credit score on your credit report. But for a fee, you can get your credit score from [https://www.consumer.equifax.ca/ Equifax] or [https://www.transunion.ca/ TransUnion].
Your file grows as you do business with banks and companies. These “creditors” regularly report details about you to the credit reporting agencies.


{| class="wikitable"
For example, when you open an account. If you miss payments. What your credit limit is.
|align="left"|'''Tip'''
For more information on credit scores, see People’s Law School’s tips on [https://www.peopleslawschool.ca/everyday-legal-problems/money/credit-reports/improving-your-credit-score improving your credit score].
|}
===Your consent is needed (with some exceptions) for someone to see your credit report===
Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec106_smooth law in BC], a credit reporting agency can't share your credit report without your permission. (There are three exceptions to this rule, which we will explain.)


====When someone asks to see your credit report====
===What counts as “credit information”===
Banks and other lenders, potential employers and landlords might want to see your credit report to see if you are trustworthy. This is called a '''credit check'''. It helps them decide whether to lend you money, hire you, or rent to you.
'''Credit information''' is broadly defined. It includes your history of paying bills and borrowing and paying back money.


You don't '''have''' to consent to a credit check. If you refuse, the bank or other party requesting the credit check can also refuse to do business with you.
But it also includes:
* your name and age
* where you live now and where you’ve lived in the past
* where you work and roughly how much you earn
* your education and work qualifications
* your spouse’s name and age
* your marital status


Your consent to a credit check is sometimes folded into an application for credit, employment, or tenancy. By signing the application, you agree to the check. But by law, the consent must be prominently displayed and easy to understand.
Any of these details can appear in your credit report. So can information collected from public records — for example, court or marriage documents.


====Situations where your consent is not required====
===What can’t be in your credit report===
Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec108_smooth law in BC], there are certain situations where credit reporting agencies '''don't''' need your consent to share a copy of your credit report. You have no choice when the credit report is requested by:
Certain information ''can’t'' be in your credit report. Including:
*the federal, provincial, or municipal government
* information about members of your family (other than your spouse)
*the police, for the purposes of an investigation
* your race, religious beliefs, skin colour, sexual orientation, ethnic background, or politics
*anyone with a court order authorizing access to your credit report
* criminal convictions that have been discharged or pardoned
* criminal charges that were withdrawn or dismissed


===Information that cannot be in your credit report===
As well, some information can’t be in your report if it’s more than six years old:
Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec109_smooth law in BC], some information '''can't''' be part of your credit report:
* a court judgment against you (unless you still haven’t paid the debt)
*information about any member of your family other than your spouse
* a criminal conviction
*your race, religious beliefs, skin colour, sexual orientation, ethnic background or political views
* a bankruptcy (unless you’ve been bankrupt more than once)
*criminal convictions that have been discharged or pardoned
* any other negative information about you
*criminal charges that were withdrawn or dismissed


There's also information that '''can't''' be part of your credit report '''if it is more than six years old''':
If you notice something in your credit report that shouldn’t be there, we can help you get it fixed. See [https://www.peopleslawschool.ca/fixing-mistake-credit-report/ fixing a mistake in your credit report].
*a court judgment against you (unless you haven't paid what you owe)
*a criminal conviction
*a bankruptcy (unless you've been bankrupt more than once)
*any other negative information about you


===You have the right to dispute anything on your credit report===
===Your credit score can help you understand your credit report===
Under [https://www.canlii.org/en/bc/laws/stat/sbc-2003-c-63/latest/sbc-2003-c-63.html#sec24_smooth BC law], you have the right to ask a credit reporting agency to fix any mistake you find in your credit report. You can send a letter about the error, and the credit reporting agency must take reasonable steps to check the information and respond to you within 30 working days.  
Credit reporting agencies use a formula to generate a '''credit score''' from the information they have on you. Banks, businesses, and others look at it to decide whether to lend you money.


If the credit reporting agency agrees to make the correction, it must do so promptly. It must also send the new correct information to anyone who received your credit report in the last year.  
Your credit score doesn’t appear on your credit report. But you can order it from either credit reporting agency. Visit [https://www.consumer.equifax.ca/personal/products/credit-score-report/ Equifax] or [https://www.transunion.ca/credit-score TransUnion].
If the agency doesn’t make the correction you asked for, it must make a note in your file that you asked for the information to be corrected.  


Also, if there’s anything in your file you think should be explained, you have the right to add an explanation of up to 100 words. The credit reporting agency attaches it to your report and anyone who orders a copy sees it.
Credit reporting agencies don’t have to say how they calculate credit scores. And lenders often have their own ways of doing the math. So your credit score might be slightly different depending on who came up with it.


==Get help==
We offer guidance on how to boost your score. See [https://www.peopleslawschool.ca/improving-credit-score/ improving your credit score].


===Accessing your credit report===
===Go deeper===
The '''Office of the Information & Privacy Commissioner''' oversees BC's laws relating to privacy and access to information. If a credit reporting agency refuses your request for a copy of your credit report, you can ask the Privacy Commissioner to review the decision. If someone gets their hands on your credit report improperly, the Commissioner has the power to investigate.
If you're interested, we have more on everything we've covered here. [https://www.peopleslawschool.ca/taking-charge-credit-report/ See our in-depth information on taking charge of your credit report].
:Toll-free: 1-800-663-7867
:Web: [http://www.oipc.bc.ca/ oipc.bc.ca]
 
===Fixing a mistake on your credit report===
'''Consumer Protection BC''' can help with certain problems with credit reports. For example, where information on your credit report is over six years old, or where you were denied the opportunity to provide an explanation on your credit report.
:Toll-free: 1-888-564-9963
:Web: [http://www.consumerprotectionbc.ca/ consumerprotectionbc.ca]
 
The '''Office of the Information & Privacy Commissioner''' oversees BC's laws relating to privacy and access to information. If a credit reporting agency refuses your request to fix a mistake, you can ask the Privacy Commissioner to review the decision.
:Toll-free: 1-800-663-7867
:Web: [http://www.oipc.bc.ca/ oipc.bc.ca]
 
===Improving your credit score===
The '''Credit Counselling Society of BC''' is a non-profit society that helps people better manage their money and debt.
:Toll-free: 1-888-527-8999
:Web: [http://www.nomoredebts.org/ nomoredebts.org]
 
 
 
[updated October 2017]
 
'''The above was last reviewed for legal accuracy by [http://www.leighco.ca/wendy-andersen Wendy Andersen], Digby Leigh & Company.'''
 
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Latest revision as of 01:27, 7 November 2023

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Wendy Andersen, Digby Leigh & Co. and Casey Harris, Barrister & Solicitor in February 2020.

Your credit report shows your history of paying bills and borrowing money. It’s used to calculate your credit score. Here are key things to know about how credit reports work.

What you should know

Where your credit report and credit score come from

Say you open a new line of credit at the bank. Or you’re late paying your phone bill. For events like these, the bank or business you’re dealing with reports the information to a credit reporting agency.

There are two main credit reporting agencies in Canada: Equifax and TransUnion. They gather your information into a credit report.

You’re entitled to a free copy of yours. We offer guidance on how to get it. See ordering your credit report.

The credit reporting agencies plug your credit information into mathematical formulas to come up with your credit score. A high credit score is good. It means you’re a good bet to lend money to — because you’re seen as likely to pay it back.

Your credit report includes credit information

Your credit report is really the story of you and your money. Your history of borrowing, paying back, and covering your bills. The moment you get your first credit card or take out your first loan, the credit reporting agencies open a file on you.

Your file grows as you do business with banks and companies. These “creditors” regularly report details about you to the credit reporting agencies.

For example, when you open an account. If you miss payments. What your credit limit is.

What counts as “credit information”

Credit information is broadly defined. It includes your history of paying bills and borrowing and paying back money.

But it also includes:

  • your name and age
  • where you live now and where you’ve lived in the past
  • where you work and roughly how much you earn
  • your education and work qualifications
  • your spouse’s name and age
  • your marital status

Any of these details can appear in your credit report. So can information collected from public records — for example, court or marriage documents.

What can’t be in your credit report

Certain information can’t be in your credit report. Including:

  • information about members of your family (other than your spouse)
  • your race, religious beliefs, skin colour, sexual orientation, ethnic background, or politics
  • criminal convictions that have been discharged or pardoned
  • criminal charges that were withdrawn or dismissed

As well, some information can’t be in your report if it’s more than six years old:

  • a court judgment against you (unless you still haven’t paid the debt)
  • a criminal conviction
  • a bankruptcy (unless you’ve been bankrupt more than once)
  • any other negative information about you

If you notice something in your credit report that shouldn’t be there, we can help you get it fixed. See fixing a mistake in your credit report.

Your credit score can help you understand your credit report

Credit reporting agencies use a formula to generate a credit score from the information they have on you. Banks, businesses, and others look at it to decide whether to lend you money.

Your credit score doesn’t appear on your credit report. But you can order it from either credit reporting agency. Visit Equifax or TransUnion.

Credit reporting agencies don’t have to say how they calculate credit scores. And lenders often have their own ways of doing the math. So your credit score might be slightly different depending on who came up with it.

We offer guidance on how to boost your score. See improving your credit score.

Go deeper

If you're interested, we have more on everything we've covered here. See our in-depth information on taking charge of your credit report.

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