Credit Report Canada

By: EconomyWatch   Date: 25 August 2009

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A credit report in Canada works on the point system similarly to the way US credit reporting works. A credit score is a numerical expression that is based on a quantitative analysis of a person’s credit history. A credit score expresses the creditworthiness of an individual and is derived from analysing the credit bureau’s data.

Credit reports expressed in numbers help lenders identify the potential risk that lending may involve. It also lets them identify bad borrowers and hence stay away from them or define the credit limit and interest rates.

Credit Reports in Canada

Canada allows a person to have any number of free credit report copies, as long as the consumer wants the copy to be delivered by mail. Although each time a person requests for a copy this information is noted, it has no effect on the credit report.

‘Understanding Your Credit Report’ and ‘Credit Score’ are two free publications that the government of Canada circulates. These publications are available online, although printed copies can also be ordered by the residents of Canada. These publications provide a sample Canadian credit report layout and contain various score documents. They explain the various notations and codes used in the credit reports and also contain information on the ways to improve one’s credit history.

Steps to Check a Credit Report in Canada

It is important to ensure that the ‘right’ credit report has reached you and you are not a victim of identity theft. Follow the measures mentioned below to check the authenticity of the report before reading the scores:

  • Go through the personal information section and read the details carefully. Verify the social security number, your address and other details. If there is any mismatch, write back to the credit agency for corrections.

  • Check the credit history section carefully, since it might contain more errors than all the other sections combined. Check the name of the creditors, account information and other financial information. Look for the errors and if need be, go through the report again.

Also, check for the number of inquiries made for your credit history. Look for the companies that made the inquiries and highlight any unnecessary inquiry that might be reflecting on your credit report.

A credit report is your financial personality, so take as much care of it as you take of yourself. It is crucial that you check each credit report – Canada for errors to ensure that you do not become a victim when you need money the most.     


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