In Canada, there are two credit reporting bureaus, which means you probably have more than one credit score.
Don’t worry if they have different numbers. Some lenders and creditors report to only one bureau, while others report to both.
A credit report is a summary of your credit history. Credit bureaus compile your credit reports based on the information reported to them from your lenders and creditors. Then potential lenders, creditors, landlords, and insurance companies use your credit reports as part of their approval process.
While your credit reports do represent a good portion of your credit history, the information is not saved for the total duration of your credit using life. Your credit information will no longer appear on your credit reports after a certain period of time (this depends on the type of information).
But how long does this credit information stay on your credit report?
Your credit report contains all important information, the good and the bad, regarding your credit accounts. A credit account or tradeline is a general term used to describe credit cards, lines of credit and loans. If you have one or all of these credit products, they will appear on your credit report. In fact, your credit report can be broken down into four sections:
This section of your credit report will include information regarding your personal details like your name, address, date of birth, phone number, and Social Insurance Number (SIN). It may also include your employment history. This information is used for verification purposes only and will not affect your credit.
As mentioned above, your credit accounts or tradelines will be recorded here. It will include details such as the account type, when you opened your account, the loan amount or credit limit, the balances on your account, and your account payment history.
This section of your credit report will include a list of people or companies that have pulled your credit report. You’ll find both hard and soft inquiries listed here, but only you will be able to see the soft inquiries.
This section includes items that are a matter of public record. It typically includes bankruptcy, consumer proposals, legal judgments, liens and accounts in collections.
Most lenders and creditors report directly to both the credit reporting bureaus in Canada; TransUnion, and Equifax. However, some lenders and creditors report to only one of the credit bureaus, while others report to none. As such, the information in your credit reports from Transunion and Equifax can vary. This, in turn, can affect the calculation of your credit scores, which is one of the reasons you have multiple credit scores in Canada.
A credit account that was paid off on time and is in good standing will usually remain on your credit reports for as long as the account is open and being used. Often, consumers mistakenly believe that old credit accounts are bad information and do not want them on their reports. But, actually, this is the exact type of information that you want to appear on your credit reports. Old accounts, which were paid off on time, show potential future lenders that you can responsibly handle credit. A long and positive credit history is created by using credit, taking on loans, and making payments.
When it comes to delinquent credit accounts or other negative credit information, it’s best for your overall credit health if that information is removed from your credit report as soon as possible. It’s this type of information that can lower your credit scores and hinder your ability to get approved for the credit and loan products you need.
Unfortunately, negative credit information does stay on your credit report as it’s used by creditors and lenders to assess your risk level. The good news is that negative credit information doesn’t stay on your credit report for as long as positive credit information.
There are so many different types of negative credit information that can appear on your credit report, and depending on which credit bureau it’s been reported to, the amount of time it may stay on your credit report can vary. Here is a detailed list of how long each will stay on your report with each credit bureau.
| Term | Definition | Equifax | TransUnion |
| Late Payments | Equifax removes late payments 6 years after the lender reports it. TransUnion removes late payments 6 years after the first delinquency. | 6 | 6 |
| Closed chequing or savings accounts due to fraud | When your chequing or savings account is closed due to fraud. | 6 | 6 |
| Inquires | When a company or person does a credit check on you, they do so by requesting your credit report from one of the two credit bureaus. The act of accessing your credit report is called an inquiry. | 3 | 6 |
| Accounts in Collection | If you continue to default on your payments you will be considered a serious delinquent. When that happens, companies will sell your account to a collection agency, which is a more intensive method of debt recovery. | 6 | 6 |
| Liens | Lien is a term used to define an asset that is used as security for a loan. In the event the borrower cannot repay his debt, the lender has the right to seize the asset the repay the debt. Note: at TransUnion lien information will stay on your report for 5 years. | 6 (10 in PEI) | 5 |
| Bankruptcy | Bankruptcy is a legal procedure in Canada that is filed by a Licensed Insolvency Trustee. It allows you to absolve most of your debt, however, you may lose possession of your assets. Note: TransUnion keeps bankruptcy information for 7 years in Ontario, Quebec, New Brunswick, Newfoundland and Labrador, and P.E.I. | 6 | 6-10 |
| Multiple bankruptcies | If you file for more than one bankruptcy. | 14 | 14 |
| Consumer proposal | A consumer proposal is a legal proceeding in Canada that is administered by a Licensed Insolvency Trustee. It allows you to settle your debts by paying off a portion of your debt over a period of 5 years. Note: Equifax will remove the remark 3 years after you pay all debts in the consumer proposal. TransUnion will remove it 3 years after you pay your debts or 6 years after you signed the proposal, whichever is sooner. | 3 | 3 or 6 |
| Remarks | Any notes written regarding your account such as “settled” or “account closed due to inactivity” is considered a remark. | 6 | 6 |
| Legal judgments | Judgements are debts you owe through lawsuits. Note: TransUnion keeps legal judgment information for 7 years in Ontario, Quebec, New Brunswick and Newfoundland and Labrador and 10 years in P.E.I. | 6 | 6-10 |
| Orderly Payment of Debts (OPD) | OPD is a government program in Alberta, Saskatchewan and Nova Scotia that allows people to repay their debts at a fixed rate of 5% over a period of up to 5 years. Note: TransUnion does not report the OPD itself but keeps each of the accounts associated with the OPD on record for 2 years following the date paid, or if sooner, 6 years from when the account first became delinquent. | 3 | 2-6 |
| Debt management program (DMP) | A DMP is a debt relief program that consolidates all of your unsecured debt in one affordable payment. Both Equifax and Transunion will remove the DMP 2 years after debts are paid. Note: At Equifax, if a debt is not repaid, the DMP remains on the credit report for 6 years following the date filed. Note: TransUnion will keep the DMP on record for 2 years following the date paid, or if sooner, 6 years from when the account first became delinquent. | 2 | 2 |
If your credit reports contain incorrect information there are typically two causes, either the information was reported incorrectly or the discrepancies are due to identity theft. If you notice a mistake or discrepancy, please contact Equifax or TransUnion to resolve the problem. Keep in mind that both bureaus have their own protocol for dealing with incorrect information and you may need to provide specific documentation as proof.
Problems like these are an important reminder of why you should check your credit report at least once a year.
Keep in mind that the two credit reporting bureaus, Equifax and TransUnion, keep credit information for different amounts of time. Furthermore, some creditors report to only one bureau, therefore some information may not appear on your credit report if you only request a copy from one of the two bureaus.
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Caitlin Wood is the Editor-in-Chief at Loans Canada and specializes in personal finance. She is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. Caitlin has covered various subjects such as debt, credit, and loans. Her work has been published on Zoocasa, GoDaddy, and deBanked. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security.
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