Credit Reporting in Canada

January 23, 2010  |  Credit Report Canada

All about credit reporting in Canada.

What is a Credit Report?

A credit report in Canada acts as a report card for your credit repayment history. The basic function of a credit report is to detail how well you handle your financial responsibilities and pay back your creditors.


How Do You Open a Credit File in Canada?

Credit reports (or credit files) are opened when you first apply for credit. Any time you fill out a credit application in Canada the information you provide is used to either open your credit file (the first time you apply) or update your credit file.

How Does Credit Reporting Work?

Every time a person applies for credit or a month elapses while they have active credit, information is transmitted from the source (the creditor holding the loan or the financial institute submitting the credit application) to the credit bureaus in Canada, who then update that persons credit file.

The process outlined above is a basic way of describing how credit reporting works in Canada.

Do All Loans Report to the Credit Bureau in Canada?

Most loans in Canada report to the two Canadian credit bureaus. There are however certain types of loans that do not report to the credit bureau. Non reporting loans are typically in house loans, private loans, small loans or utility loans.

The types of loans in Canada that don’t always report to the credit bureau are:

  • Cable & Mobile Contracts – Cell phone and cable contracts (such as Rogers mobility or Rogers cable) don’t always report to both credit bureaus until there is a payment problem.
  • Mortgages – A mortgage in Canada will usually show as a secured or loan registered loan, however they sometimes don’t appear on a credit bureau as a mortgage trade line.
  • In House Auto Financing – Some car dealerships offer their own financing. This is often referred to as in house leasing or in house financing. While a lot of these financing dealers report their loans to credit bureaus, many do not. This can have an adverse affect on a person’s credit rating if they are trying to establish credit.
  • Private Loans – Most private loans do not report to the credit bureau.

Which Creditors Report to Credit Bureaus in Canada?

Almost all major creditors in Canada report to both credit bureaus. These major Canadian creditors include, but are not limited to:

  • All major credit card companies (Visa, Mastercard and American Express)
  • Retail Creditors (Futureshop, Canadian Tire, HBC and Sears)
  • All major Canadian banks
  • Most credit unions
  • Auto lenders & leasing companies
  • Manufacturer auto lenders

If you want to check your Canadian credit report online go to Check Your Credit right now!



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