Protecting your credit report in Canada is essential for maintaining good credit health and preventing identity theft or fraud. Unfortunately, your credit report is vulnerable to mistakes and fraudulent activity, which you may only find out about when you apply for a credit product.
Your credit score is calculated based on the information in your credit report, so it’s important to check your report regularly and ensure that all the information is correct. Read on to learn how to protect your credit to avoid negative effects on your credit score and potential identity theft.
Key Points
- Your credit report contains sensitive personal and financial information that should be kept safe.
- The information contained in your credit report is used to calculate your credit score.
- Inaccurate information on your credit report can unfairly pull your credit score down.
- To keep your credit report protected, several steps can be taken. Regularly reviewing your credit reports to spot errors and reporting inaccuracies to the credit bureaus.
What Is A Credit Report?
A credit report is a detailed record of your credit history prepared by the credit bureaus. In Canada, the two major credit bureaus are Equifax and TransUnion.
What Information Is Included In Your Credit Report?
Your credit report is created once you apply for credit or borrow money for the first time. Important personal and financial information is included in your credit report, such as:
- Full name
- Birth date
- Employment history, including current and previous employers
- Credit history and account information, such as when accounts were opened or closed, account balances, and payment history
- Negative remarks, such as late payments, non-sufficient funds (NSF), and closed accounts with delinquencies
- Public records, such as bankruptcies, judgments, and liens
- Hard credit inquiries
It’s important to note that the credit report created by both credit bureaus can vary, as not all lenders and creditors report to both credit bureaus. As such, the information you find in your TransUnion credit report can differ from the information in your Equifax report.
How To Protect Your Credit Report
To keep your credit report safe, and all sensitive information on it, take the following steps.
Get A Copy Of Your Credit Report
It’s important to check your credit report regularly to spot errors or suspicious activity early on. Look for inaccuracies, like incorrect addresses, unfamiliar accounts, or unauthorized inquiries. Errors on your credit report can pull your credit score down and be a sign of potential fraud.
You can get your credit report from both credit bureaus or third-party credit reporting agencies.
How To Get Your Credit Report From Equifax
You can get access to your Equifax credit report and credit score in several ways:
- Online – You can create an online Equifax account to access your free credit report and credit score.
- Mail – To request your credit report for free by mail, you’ll need to send this form along with photocopies of personal identification to the following address:
- Equifax National Consumer Relations, Box 190, Station Jean-Talon, Montreal, QC, H1S 2Z2
- Phone – Call 1-800-465-7166 and provide information to verify your identity to request your free credit report.
- In-Person – Visit one of the Equifax offices in Canada along with your personal identification to get your credit report.
How To Get Your Credit Report From TransUnion
You can access your TransUnion “Consumer Disclosure” in the following ways:
- Online – To get your TransUnion Consumer Disclosure online for free, create an account.
- Mail – To request a copy of your Consumer Disclosure by mail, send a completed Consumer Request Form to the following address:
- TransUnion Consumer Relations Department, P.O. Box 338, LCD1, Hamilton, ON, L8L 7W2
- Phone – Call 1-800-663-9980 to request your copy over the phone. You’ll need to verify your identity using their Interactive Voice Response system.
- In-Person – Visit one of the TransUnion offices along with your personal identification to get your free Consumer Disclosure.
How To Get Your Credit Report From Third-Party Resources
In addition to the major credit bureaus, other online resources are also available that provide free credit reports and credit scores, such as the following:
| Cost | Credit Score | Credit Report | ||
 | Free | Yes | Yes | Visit Site |
 | Free | Yes | Yes | Visit Site |
 | Free | Yes | Yes | - |
Report Inaccuracies To The Appropriate Party
Lenders can make a mistake with the information they report to a credit bureau. Or, a credit bureau can make a mistake with the information recorded on your report. If this happens, take steps to get any mistakes corrected as soon as possible.
Speak With Your Lender — You can reach out to the lender or creditor if you believe the inaccuracy on your credit report was due to the lender reporting incorrect information to the credit bureaus. Ask them to look into the issue, and if they find that they were in the wrong, ask them to send the credit bureaus the correct information.
Reach Out To The Credit Bureaus — You can also dispute an error with the credit bureaus. TransUnion and Equifax each have their own process for reporting errors and fixing them. Reach out to the appropriate credit bureau to have the mistake rectified right away.
Monitor Your Credit On A Regular Basis
It’s very helpful to fix an issue on your credit report as soon as the mistake or suspicious activity is noted. That’s why it’s so important to pull your credit report regularly to keep tabs on your credit activity.
While you can do this yourself, there are also credit monitoring services available, which will watch your credit report on your behalf for a fee. These services will alert you to any noteworthy changes in your credit report, like new accounts being opened, hard credit checks, or changes in your name or other personal information.
Execute A Fraud Alert
You can implement a fraud alert on your credit report to notify lenders to take precautions before opening a new account in your name. Keep in mind that a fraud alert is only available to those who have already been the victim of identity theft.
Place A Credit Freeze On Your Credit Report
A credit freeze prevents lenders and creditors from accessing your credit report without your authorization. This step can be effective in preventing unapproved accounts from being opened in your name. Both Equifax and TransUnion can implement a credit freeze.
Keep in mind that if you decide to apply for new credit in the future, you’ll first need to lift the credit freeze. Further, credit freezes are only available in Quebec.
Be Cautious With Loan Applications
Whenever you apply for new credit, your creditor will pull your credit report to verify your creditworthiness. Not only are you giving the creditor permission to check your report, but your credit score may also be negatively affected. As such, be mindful of the types of credit accounts you’re applying for, and try to limit the number of loan applications you make in a short period.
Report Lost or Stolen Credit Cards Right Away
If your credit card is lost or stolen, report it to your bank immediately and have the account locked or cancelled. This can prevent unauthorized transactions from being made and may help protect your credit account from additional fraud.
Regularly Review Account Statements
Carefully look over your bank and credit card statements for unauthorized transactions. If you spot any, notify your financial institution right away.
How To Avoid Identity Theft
The best way to protect yourself from identity theft is to always be aware of what is happening with your accounts. This can be done by regularly checking your credit reports. That way, you can spot any suspicious notes on your report early on and take the necessary steps to protect yourself.
To avoid identity theft, consider the following:
Be Careful With Your Personal Information
Be cautious about sharing your personal information, whether online, over the phone, or via email. Make sure you know exactly who is asking for and collecting your information, and always verify that the request for your personal information is legitimate before you hand it out.
Keep Documents Safe
Many documents contain sensitive information, such as tax returns, bank statements, and credit card statements. Make sure you store these documents in a secure location. If you must dispose of them, be sure to shred them first to prevent fraudsters from getting their hands on them.
Create Strong Passwords
Use strong, unique passwords to thwart efforts from thieves to access your sensitive information online. Don’t use passwords that others may be able to easily figure out, like birthdays. Use a combination of letters, numbers, and symbols to create hard-to-crack passwords, and consider creating a different password for each account you have.
Enable 2-Factor Authentication
Using 2-factor authentication adds another layer of security by asking for an additional form of identification before letting you into your account.
How To Deal With Identity Fraud
If you’re currently dealing with identity fraud, follow these steps:
- Note the date that you realized you became a victim of fraud and what actions you took.
- Report the case to the police right away.
- Contact the Canada Revenue Agency (CRA) at 1-800-959-8281.
- Get in touch with the lenders and other institutions where your accounts were fraudulently affected.
- Contact the credit agencies and place a fraud alert for your accounts.
- Retain records of recent financial transactions, purchases, and payments.
- Contact the Canadian Anti-Fraud Centre.
Final Thoughts
Prevention is the best way to deal with fraud and protect your credit report. By including the maintenance of your credit accounts into your daily routine, you’ll always know what’s going on and can take action right away should you come across anything suspicious.
