Credit Basics
Repair Your Credit
Rebuilding Good Credit
If you’ve had credit problems in the past, you probably feel frustrated and worried that your damaged credit history will stay with you forever, or at least for a very long time. In almost every case, however, there are strategies you can use to put your credit back on track. If you actively work on improving your credit, you will see results. It may not happen as quickly as you hope – or it may happen more quickly than you expected. Some consumers are able to buy a home in as little as a year after bankruptcy, for example. It all depends on your situation and whether you are willing to take the time and effort required. In this brochure, you’ll find proven strategies for building better credit.
Step 1: Start where you are
Your first step is to get a copy of your credit report, preferably from all major
credit bureaus. You’ll find a good source for pulling those credit reports at the
websites of all of the major credit reporting agencies in Canada. There you can
get a copy of your report, along with credit scores, from Equifax and
Trans Union. With this information, you’ll be able to create a game plan for improving
your score. We also recommend you read
Make the Most of Your Credit Score, a free publication from Consolidated
Credit Counseling Services of Canada, Inc. Below you will see the contact information
for both Equifax Canada and TransUnion Canada. If you visit their
websites, you will find additional information including educational material regarding
your credit.
Equifax Canada
Mail requests to:
Equifax Canada Inc.
Consumer Relations Department
Box 190 Jean Talon Station
Montreal, Quebec
HIS 2Z2
www.equifax.com/EFX_Canada
Phone: 1-800-465-7166
Fax: 514-355-8502.
TransUnion Canada
Mail requests to:
TransUnion Consumer Relations Dept.
P.O. Box 338, LCD1
Hamilton, ON
L8L 7W2
www.transunion.ca
Phone: 1-800-663-9980
Step 2: Understanding Your Credit Picture - How long can information be reported?
The first thing most people with bad credit want to know is, "How long can this information haunt me?”
While positive or neutral information can be reported indefinitely, negative information can only be reported for a specific length of time. The following information is according to Equifax Canada:
CREDIT INQUIRIES TO THE FILE: An Inquiry made by a Creditor will automatically purge three (3) years from the date of the inquiry. The system will keep a minimum of five (5) inquiries.
CREDIT HISTORY AND BANKING INFORMATION: A credit transaction will automatically purge from the system six (6) years from the date of last activity. All banking information (chequing or savings account) will automatically purge from the system six (6) years from the date of registration.
VOLUNTARY DEPOSIT - ORDERLY PAYMENT OF DEBTS, CREDIT COUNSELLING: When voluntary deposit – OPD – credit counselling is paid, it will automatically purge from the system two (2) to three (3) years from the date paid.
REGISTERED CONSUMER PROPOSAL: When a registered consumer proposal is paid, it will automatically purge three (3) years from the date paid.
BANKRUPTCY: A bankruptcy automatically purges six (6) years from the date of discharge in the case of a single bankruptcy. If the consumer declares several bankruptcies, the system will keep each bankruptcy for fourteen (14) years from the date of each discharge. All accounts included in a bankruptcy remain on file indicating “included in bankruptcy” and will purge six (6) years from the date of last activity.
JUDGMENTS, SEIZURE OF MOVABLE/IMMOVABLE, GARNISHMENT OF WAGES: The above will automatically purge from the system six (6) years from the date filed.
COLLECTION ACCOUNTS: A collection account under public records will automatically purge from the system six (6) years from the date of last activity.
SECURED LOANS: A secured loan will automatically purge from the system six (6) years from the date filed.
(Exception: P.E.I. Public Records: seven (7) to ten (10) years.)
(Source: www.equifax.com/EFX_Canada)
