Keeping your credit report up-to-date and error-free is essential for maintaining a healthy credit score. But mistakes can happen, sometimes due to fraud, but also from simple errors that may go unnoticed.
Since lenders often review your report before approving credit, it’s important to keep your credit report free of errors, as incorrect negative information could lead to loan denial.
Read on to find out if and how to remove derogatory items from your credit report.
Key Points
- You cannot remove accurate negative items from your credit report.
- Only negative remarks included on your credit report by error can be removed.
- To remove a negative item from your credit report, you’ll need to file a dispute with the respective credit bureau.
- If you’re unsatisfied with the results of the dispute, you have the right to escalate your dispute to a higher level.
Can You Remove A Negative Remark From Your Credit Report?
It’s important to note that any negative information that wasn’t the result of an inaccuracy or crime will not be removed from your credit report prior to the designated date.
Legitimate negative remarks on your credit report will remain for a certain length of time, depending on the specific note. However, if there are any inaccurate negative remarks on your credit report, you could have them removed.
Types Of Errors You Can Remove From Your Credit Report
The following are common errors you may encounter in your credit report that can be rectified:
- Inaccurate Personal Details: Simple mistakes such as the wrong name, birthdate, or mailing address can spell disaster because you could end up with someone else’s credit information (or vice versa).
- Wrong Account Information: It’s also possible that your lender didn’t report your payment or account activity correctly. For instance, you may have paid your debt on time, but it was accidentally labelled as late or defaulted.
- Falsified or Stolen Accounts: Identity theft and fraud are two unfortunate events that can affect your credit. Moreover, it is complicated and time-consuming to deal with afterward. You may notice accounts you didn’t open or debts you don’t recognize that could point to fraudulent activity.
- Uncorrected Negative Information: Missed payments and other negative credit actions stay on your report for several years (unless due to an error or fraud). If so, a bureau may forget to remove the information after the allotted time period.
Learn more: Common Errors Found On Credit Reports In Canada
| My account in collections disappeared from my credit report: How did this happen? There are several reasons why an account in collections dropped off your credit report: Mistake by the lender or credit bureauLender name changeTechnological glitchCollection agency purchased the debtAutomatic removal after time elapses |
How To Remove An Error From Your Credit Report
If there’s an error on your credit report, you can have it rectified by filing a dispute with your credit bureau. If there’s a mistake with a particular account, you can speak with your creditor first. Ask them to look at their records, and if they admit an error, they can send the credit bureaus the correct information.
If you wish to dispute a remark with the credit bureau, follow these steps:
Step 1: Gather Supporting Documents
You’ll need evidence to support your case when you dispute errors on your credit report with the credit bureaus. Supporting documents can include receipts, statements, or other account-related documents. You may also need to provide other information, such as:
- The company name associated with the remark you wish to dispute.
- The account number of the remark you wish to dispute.
- The reason for the dispute.
Step 2: File A Dispute With The Credit Bureau
Depending on the credit bureau you’re disputing with, you’ll need to fill out the proper form to correct inaccuracies on your report.
How To File A Dispute With TransUnion
You can initiate a dispute with TransUnion online, by phone, or by mail.
| Online | To start a dispute online with TransUnion simply start an application through TransUnion’s online portal. |
| By Phone | You can speak to a TransUnion representative by calling: 1-800-663-9980 (for English service) or 1-877-713-3393 and 514-335-0374 (for French service). |
| By Mail | To initiate a dispute by mail, you’ll need to download, print, and fill out an Investigation Request Form. You can send your completed form to the following address: TransUnion Consumer Relations Department P.O. Box 338, LCD1 Hamilton, Ontario L8L 7W2 |
How To File A Dispute With Equifax Canada
You can initiate a dispute with Equifax online or by mail. Regardless of which option you choose, you’ll need to complete and submit the Consumer Credit Report Update Form.
| Online | To start a credit report dispute online, you can go to equifax.ca. |
| By Mail | To file a dispute by mail, download, print and complete the Consumer Credit Report Update Form and send it to the following address: Equifax Canada Co. Consumer Relations Department Box 190 Jean Talon Station Montreal, Quebec H1S 2Z2 |
Step 3: Wait For A Response
The credit bureau will look over your dispute claim and investigate it thoroughly. This may involve speaking with the creditor or lender that reported the information.
If the lender admits an error, the credit bureau may remove the remark from your credit report. However, if the lender confirms that the information is accurate, your credit report will remain as is.
What Can You Do If Your Credit Bureau Rejects Your Dispute?
If you think you’re not being treated fairly, or you’re unhappy with how your dispute investigation went, try filing an official complaint with Equifax, TransUnion, or your financial institution (as long as it’s federally regulated). In either case, the complaint may reach a higher-level employee and be taken more seriously.
If this strategy doesn’t work, you can also complain to your provincial or territorial Consumer Affairs Office, where you can at least get some advice on how best to proceed. Once again, it can take time for any documents to be processed and results to be seen, so make sure to file your complaint sooner rather than later.
Can You Remove A Negative Remark From Your Credit Report With A Goodwill Letter?
If neither credit bureau accepts your dispute because the negative occurrence was your responsibility, you can try sending a “goodwill letter” to the lender or collection agency that holds your debt and has been reporting your payment activity.
A goodwill letter may be sent to request the removal of a negative remark as a one-time exception, often as a result of temporary financial hardship. This may only be an option if you’ve been a good client up to that point and can assure them that you will not miss any more payments.
However, lenders and credit bureaus in Canada don’t typically accommodate goodwill removal requests. That’s because they’re required to report information accurately under the Personal Information Protection and Electronic Documents Act (PIPEDA).
Can You Remove A Negative Remark From Your Credit Report Through A “Pay For Delete” Deal?
You may be tempted to enter into a “pay for delete” deal, which involves paying off a debt in exchange for the creditor removing the negative remark from your credit report.
However, this is not a legal solution, as you cannot delete accurate information from your credit report. Even if a collection agency agrees to this type of arrangement, there’s no guarantee that the credit bureaus will remove the account if they find out that it’s the result of such a deal.
In most cases, the collection agency will update the account status to “paid” or “settled,” but the negative mark remains on your credit report. It will just be noted as resolved.
Even if the collection agency provides you with an agreement in writing, the credit bureaus are not obligated to honour it. As mentioned, lenders and credit bureaus are required to accurately report information under the Personal Information Protection and Electronic Documents Act (PIPEDA).
Can A Credit Repair Company Help You?
Many credit repair companies advertise that they can have your negative credit information wiped clean for a price. However, these companies cannot do anything more than you. They can only help you through the dispute process to help you remove errors on your credit report.
They cannot remove accurate negative information.
Learn more: Are Credit Repair Companies Trustworthy? Our Team Investigates
How To Check Your Credit Report
You can get your credit report from a few sources, including the following:
- Credit Bureaus: Both credit bureaus in Canada – Equifax and TransUnion – provide free credit reports.
- Big Banks: Canada’s big banks provide free access to consumer credit reports, including TD Bank, CIBC, BMO, RBC, and Scotiabank.
- Third-Party Services: Online platforms like Borrowell, Credit Karma, and Loans Canada’s CompareHub provide free credit reports to consumers.
Learn more: How To Get A Free Credit Report In Canada
How Your Credit Score Is Affected By Negative Remarks
Mistakes on your credit report can unfairly pull your credit score down. Even one error can cause problems for your score.
Good credit in Canada is a score of at least 660 and above. Anything under this can make it more difficult for you to get approved for loans and credit products. Even if you can get approved, you may have trouble securing large loan amounts or may be charged higher interest.
So, if you do find some kind of inaccuracy on your credit report, it’s extremely important to resolve the situation quickly. Although there are relatively fast and easy ways of doing this, the longer the error goes uncorrected, the worse your credit and approval chances will be.
How Long Does Negative Information Stay On Your Credit Report?
Here is a list of some credit remarks and how long each will stay on your report with each credit bureau:
| Remark | Equifax | TransUnion |
| Late Payments | 6 years | 6 years |
| Hard Inquiries | 3 years | 6 years |
| Closed Bank Accounts Due To Fraud | 6 years | 6 years |
| Accounts In Collection | 6 years | 6 years |
| Debt Management Program | 2 years | 2 years |
| Bankruptcy | 6 years | 6-10 years |
Learn more: How Long Does Credit Information Stay On Your Credit Report?
How To Protect Your Credit Report From Negative Remarks
To protect your credit report from negative remarks, take the following actions:
- Monitor Your Credit Report: Checking your credit report allows you to spot errors or suspicious activity early, so you can deal with any issues before they affect your score.
- Automate Your Bill Payments: Paying your bills on time is also crucial. Consider setting up automatic payments to ensure you never miss a due date.
- Freeze Your Credit Report: You can freeze your credit report to make it harder for identity thieves to open new accounts in your name. This can help safeguard your credit and maintain a healthy credit profile.
Learn more: How To Protect Your Credit Report
Final Thoughts
Errors and incorrect information can impact the health of your credit, which is why you should regularly monitor your credit report and score. Thankfully, there are many ways you can check your credit in Canada. If you do notice mistakes on your credit report that are pulling your credit score down, have them investigated and fixed immediately.
