Creditors and lenders use credit bureaus in Canada to check a consumer’s creditworthiness before extending credit. The credit bureau is where lenders see your loan and payback history.
The two main credit bureaus in Canada are Equifax and TransUnion. Many lenders prefer one or the other, but some will check both.
Understanding what a credit bureau is, how they get their information, and how to monitor the information contained in your credit report will help you down the road when you apply with lenders in the future.
Key Points:
- A credit bureau is an organization that collects and maintains consumer credit information.
- Not all creditors and lenders use the same credit bureaus.
- Some creditors report to both, others report to just one, and some don’t report to either.
What Is A Credit Bureau?
A credit bureau is an entity that gathers and compiles information regarding a consumer’s credit history from banks, financial institutions, lenders, creditors, and other organizations, such as courthouses and the Office of the Superintendent of Bankruptcy.
What Are The Credit Bureaus In Canada?
In Canada, there are two major credit bureaus: Equifax and TransUnion.
What Do Credit Bureaus Do With Your Credit Information?
A credit bureau uses the information they’ve gathered about individual consumers and creates a credit report and score. This information then becomes available to a variety of lenders and other financial institutions with your permission to assess your creditworthiness.
Do Credit Bureaus Make Lending Decisions?
There is a common misconception that credit bureaus make lending decisions; however, this is incorrect. A credit bureau is an independent third-party company that relays information between the consumer and the lender. The consumer’s information is made available to lenders by the credit bureaus, but at the end of the day, the final lending decision lies with the creditor.
How Do Credit Bureaus Collect Consumer Credit Information?
As previously mentioned, credit bureaus collect their information from creditors, lenders, and other organizations like the Office of the Superintendent of Bankruptcy.
Some lenders and creditors report to both, while others only report to one. Others still may not report to either. This can cause a discrepancy between your reports from Equifax and TransUnion, which can lead to multiple credit scores.
What Type Of Information Is Collected By The Credit Bureaus?
Credit bureaus collect a variety of information, including:
- Personal details, such as your legal name and address.
- Credit account information, such as your account’s status, and payment history
- Credit inquiries
- Collections information and public records, such as bankruptcies, tax liens, and consumer proposals.
Which Credit Bureau Do Lenders Check In Canada?
As noted, your credit scores can differ due to the discrepancies in your credit report. That means one credit score could be slightly different from the other.
Knowing which credit bureau your lender checks can help you understand how you’ll look as a borrower. For example, if you know your bank uses Equifax, you can check your Equifax credit report and credit score to see how you stand.
Which Banks Use Equifax In Canada?
The following banks in Canada use Equifax:
- BMO*
- TD Canada Trust
- Scotiabank*
- CIBC
- Desjardins*
- Meridian Credit Union
- Tangerine*
*These financial institutions may pull credit from either or both credit reporting agencies.
Which Banks Use TransUnion In Canada?
The following banks in Canada use TransUnion:
- RBC
- BMO *
- Scotiabank*
- Laurentian Bank*
- Bridgewater Bank
- Tangerine*
- Vancity
*These financial institutions may pull credit from either or both credit reporting agencies.
Which Credit Bureau Do Credit Card Companies Pull From?
The following is a list of credit card issuers in Canada and the credit bureau(s) they use:
- Amex Bank of Canada: Equifax and/or TransUnion
- Capital One: Equifax and or/ TransUnion
- PC Financial: Equifax and/or TransUnion
- MBNA: TransUnion to start, then Equifax if additional information is needed
- CAA Mastercard: TransUnion
- Wal-Mart MasterCard: TransUnion
How To Get Your Credit Report For Free In Canada?
You can get your credit report for free from both Equifax and TransUnion. Note that TransUnion’s version of a credit report is referred to as a ‘Consumer Disclosure’.
How To Request Your Equifax Credit Report
You can access your Equifax credit report in the following ways:
| Online | To access your credit report and credit score online, you simply need to create an account online with Equifax. You’ll need to create a username and verify your account before being able to access it. |
| By Telephone | Use the Interactive Voice Response system by calling 1-800-465-7166. |
| By Mail | To request your credit report and credit score by mail, fill out the Canadian Credit Report Request Form and attach a government-issued photo ID and any document (i.e. hydro bill, phone bill, etc) that verifies your name and address. |
| In-Person | Visit an Equifax office in person to get your credit report. Offices are located in Toronto, Halifax, and Charlottetown. |
How To Request Your TransUnion Consumer Disclosure
You can access your TransUnion credit report in the following ways:
| Online | Download your TransUnion Consumer Disclosure for free once a month by signing up online. Like Equifax, you’ll need to create an account and answer a few questions to verify your identity. |
| By Mail | To request a copy by mail, fill out the Consumer Request form and include a government-issued ID. |
| In Person | To request a copy in person, visit a provincial TransUnion office in Ontario, Nova Scotia, or PEI and bring two pieces of ID. |
How To Get Your Credit Score For Free In Canada?
If you want to check your credit score, you can do so for free from a variety of sources:
Check Your Credit Score With The Credit Bureaus
In addition to getting access to your credit report from the credit bureaus, you can also check your credit score from these agencies. Keep in mind, however, that while you can check your Equifax score for free, all Canadians except those in Quebec must pay a monthly fee to access their credit scores with TransUnion.
Check Your Credit Score With Your Bank
Canada’s big banks allow you to check your credit score for free through their mobile or online banking portals:
| CIBC | TransUnion Credit View via mobile banking |
| RBC | TransUnion CreditView Dashboard via online banking |
| BMO | TransUnion CreditView Dashboard via mobile or online banking |
| Scotiabank | TransUnion Credit Score via mobile or online banking |
| TD Bank | Equifax credit score via third-party app: Interac verification service) |
Check Your Credit Score With A Third-Party Provider
A handful of online platforms are available for you to check your credit score for free:
| Cost | Credit Score | Credit Report | ||
 | Free | Yes | Yes | Visit Site |
 | Free | Yes | Yes | Visit Site |
 | Free | Yes | Yes | - |
What’s The Difference Between Equifax And TransUnion?
Equifax and TransUnion are both credit bureaus in Canada and serve similar purposes. However, they may differ slightly in some ways:
- Credit Information: Both bureaus collect credit information from lenders, creditors, and public records. However, the data they receive may differ slightly, which can result in slight variances between both credit reports.
- Credit Scores: Each credit reporting agency uses its own scoring models to calculate credit scores. This could mean that your credit score with one bureau may differ from your score with the other. Plus, TransUnion charges a fee for Canadians to access their credit scores (except Quebec residents), while Equifax provides credit scores for free.
- Dispute Processes: If you notice inaccuracies on either credit report, you should report and dispute them. However, the dispute process may be different between Equifax and TransUnion.
What Is A Credit Pull?
Also known as a credit inquiry, a credit pull is a request by a lender, financial institution or person to view your credit report. Third parties can check your credit report to review your creditworthiness and other details before extending credit. There are two types of credit inquiries: hard inquiries and soft inquiries.
- Soft Inquiries – A soft inquiry occurs when you check your own credit. Soft inquiries are often performed by employers, insurers, and landlords. Only you can see your soft inquiries on your credit report, which does not affect your credit.
- Hard inquiries – Hard inquiries are visible to anyone who looks at your report and may negatively affect your credit. Anytime a potential lender looks at your credit report, a hard credit inquiry occurs. An example of a hard inquiry is when you apply for a mortgage and the lender pulls your credit report to determine your worthiness for extension of credit.
Who Can Check Your Credit Report?
Many entities can check your credit report, including the following:
- Lenders: Banks and other financial institutions can check your credit report when you apply for loans, mortgages, or credit cards.
- Employers: Some employers may pull your credit report as part of the hiring process, particularly for positions that involve sensitive data or financial responsibilities.
- Landlords: To determine your reliability as a potential tenant, landlords, and property managers may check your credit report.
- Insurance Companies: With some exceptions, insurance providers may check your credit report to determine your risk, which can affect your policy coverage and premium price.
Bottom Line
Now that you’re more knowledgeable about credit bureaus and how they assist lenders and consumers, you can make use of your new understanding when you apply for credit or a loan in the future. While it may seem small, your credit has the potential to affect numerous aspects of your life.
