The Credit Bureau of Canada and Collecting Agencies

Credit Bureau of Canada
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Have you ever borrowed money? Almost every Canadian citizen at least once in their life felt the need to cover the unexpected expenses or pay urgent bills. In some cases, your loan request will be approved, but sometimes you may end up being rejected because your credit score happened to be too low. Every person who has borrowed money or applied for a credit card has their own credit history together with a credit file.

Over 21 million people have credit reports but have no idea what type of data is in them and whether there are any mistakes that prevent them from getting the desired loan. A credit bureau of Canada is aimed at gathering the entire financial information and creating a credit report. Let’s get some insight into the notion of a credit bureau and how the person can learn what’s in their credit report.

What Is a Credit Bureau?

In order to understand how this agency works, let’s start with the basics and grasp the idea of what a credit bureau Canada is. This institution is often called a consumer credit reporting agency because it gathers and reviews the details connected with the person’s credit history from various finance-related institutions.

This data is later combined in a personal credit report which is necessary for prospective lenders to have a better idea of the borrower’s creditworthiness.

There are two large credit reporting agencies – TransUnion credit bureau and Equifax credit bureau. Bear in mind that not every credit bureau of Canada collections agency reports the debts assigned to them for collection. Every person has the opportunity to get their credit report for free once a year.

credit bureau of canada collections
Source: Pexels

Can Canadian Credit Bureau Make Lending Decisions?

One of the widespread myths is that credit bureau services Canada can give out different loans and make lending decisions. Well, this isn’t true. They just gather all the data from the previous creditors and lending services you’ve dealt with.

Later, they create a credit statement including all these details. This report can later be used by third parties as a credit file.

These services don’t have the right to make any lending decisions as there are special finance-related service providers as well as local banks that may give out loans or Canada cash advance for various purposes. A credit bureau gives information about your credit score. So, it’s up to the lender whether to deny or approve your loan request.

Where Does the Information for Credit Bureau Report Come from?

The reality is that every credit summary from various credit bureau services Canada may mention different data. It happens because not all lending services send reports to these major bureaus and each of them may have various sources of such information.

In general, lenders should update the credit bureau collections with information about the payment history and the current account status of each borrower. These two factors are significant when counting their credit score.

Have you noticed that your credit score varies from one credit bureau Ontario to another? The reality is that the credit score of an individual may really differ from one credit bureau to another as they use different models for counting the credit score. Furthermore, some lending companies report to a single credit bureau while others may not send any reports at all.

credit bureau of canada
Source: Pexels

What Information Does Credit Bureau Collect?

There is a certain type of information that is necessary for Equifax, TransUnion or Vernon credit bureau. They gather the personal details about each borrower, such as their full name and address, inquiry details, credit account details as well as data about collections and public record.

So, your credit file contains all of the above-mentioned data. However, you should take into account that some lenders may consider all of these details as your creditworthiness while some creditors will pay attention more to the record of your payment history and collections information.

Some people are surprised at the number of personal details present at the credit file. Even if you’ve tried to improve your credit score over time and still get rejected from a bank, it may be because the report contains financial data about every debt in the last six years.

Thus, every detail about the previous loans is used and mentioned in your credit report including your credit limit on every account, how much you’ve taken in loans, when did you take them and whether you’ve repaid the debt on time.

Free Copy of My Credit Report
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Can I Get a Free Copy of My Credit Report?

Every person has the option of getting a free variant of their credit report by mail once a year. It’s important to ask for credit reports which are free of charge so that you can check them yourself. Sometimes the details or the information may be incorrect which may affect your future borrowing. You can write to the credit bureau of Canada collections complaints if your credit file contains incomplete details or mistakes.

Also, you may find credit bureau of Canada contact online and get to know how exactly to order your report. If you can’t wait for your free report by phone or by mail, you may also request a paid version.

TransUnion bureau charges $14.95 for an instant credit file online while Equifax’s fee is $15.50. If you are willing to know your present credit score, this information can also be requested from any credit bureau. This service isn’t free but you may also try to ask a potential lender about this data.

All in all, it’s important to understand the way credit bureaus work and what data they gather. Be responsible with the money you borrow as it can later affect future lending decisions made by creditors.


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2 Replies to “The Credit Bureau of Canada and Collecting Agencies”

  1. Thanks for the relevant article. What can I do if I notice a mistake in my annual credit report? I’m afraid it may affect my credit score.

    1. If you happened to find an error in this document, you have the right to submit a request to this credit reporting bureau and ask them to revise your information about credit history so that this mistake is eliminated.

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