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The Credit bureau is the data collection agency that garners the information and data from many creditors and all this information is given to the consumer reporting agency in the US. In Canada, there are mainly two consumer credit bureaus, TransUnion and Equifax. Both are private firms and they gather information regarding the credit account and payment history of consumers. They also collect information like bankruptcy from other collection agencies.
What is the Credit Bureau of Canada?
The credit bureaus known as “National Consumer Reporting Companies (NCRC)” collect and maintain all the crucial information and data regarding all sorts of credit activities from financial institutions for all customers. Currently, credit bureau data have been made available for policymakers and researchers in an anonymized form that protects the confidentiality of customers.
In Canada, the major credit bureaus mainly collect this information from creditors and lenders. Governments regulate these credit reporting agencies on the territorial and provincial levels. Though, in Canada, many provinces have their credit reporting legislation, which describes how credit reporting agencies share information about the consumer.
In addition to this, there is federal legislation named the “Personal Informational Protection and Electronic Documents Act“. It is fundamental to adhere to the credit reporting agencies. Collection agencies, lending institutions, and other credit firms are responsible for informing credit bureaus about the status of their individual accounts daily.
After this, credit bureaus convened this information and then match the information supplied with every customer to credit the history of the people. Based on credit history, they apply credit scores to the people. The credit bureau gathers payment information regarding your bank loans, student loans, car loans, lines of credit, and credit cards.
The major credit bureaus also maintain data on the borrowing history of firms and people. They sell this information and data to lenders, creditors as well as other entities to help them make effective business decisions. There are two Credit Reporting Agencies in Canada named TransUnion and “Equifax Consumer Services”.
Use of Credit Card
The following are three facets of using credit cards:
- Whether some people use credit cards to pay for expenditures.
- Whether individuals pay off the debt incurred when the card is used for payment at the end of the billing cycle or revolves dents from month to month.
- Whether few individuals have a credit card and therefore adopted this as a payment instrument.
Three Major Credit Bureaus
There is three major credit bureau in Canada such as Equifax, TransUnion, and Experian. Data collected by Credit Bureau shows the subset of the comprehensive records maintained by banks or other creditors regarding individual cliental accounts.
TransUnion
TransUnion is one of the famous consumer credit reporting agencies. It specifically gathers and aggregates information on more than 1 billion individual customers in more than 30 nations involving 200 million. The products of TransUnion are credit monitoring services and consumer disclosure.
Equifax
Equifax is an international analytic as well as data firm. This credit bureau operates in about 24 nations and provides credit reporting services in the US and Canada. Equifax Complete Friends and Equifax Complete Premier are two key personal consumer products of this Credit Bureau. Equifax’s subscription service contains credit scores, identity theft assistants, and report monitoring.
Experian
Experian is also the biggest credit bureau in the United States. It gathers and researches the credit information of consumers and rates the entire capability of paying back a debt.
Credit Score of TransUnion, Experian, and Equifax
The credit score of TransUnion begins at 300 which is the lowest and 650 is the average. The maximum credit score of this credit bureau is 850. A good credit score from Equifax is considered between 660-24 and a very good score is considered between 725 – 59. Both organizations Equifax and TransUnion use different models to calculate credit scores, for example, Equifax uses the FICO scoring model and TransUnion uses the VantageScore model.
Is the Credit Bureau of Canada Legit?
Yes, credit bureaus of Canada are legit as they are nationally bonded, licensed, and insured across Canada and the United States. These bureaus have employed more than 950 full-time employees across five offices in Ontario, Columbia, Ohio, Quebec and Mason. Credit bureaus of Canada are even certified SOC2 Type 2 for Data Security and ISO 9001:2015 registered for QMS (Quality Management System).
Credit Reporting Collection Agencies
These major credit bureaus do not collect consumer information itself rather some credit reporting collection agencies help credit bureaus like Equifax and TransUnion to collect the entire information. Credit reporting collection agencies usually curate, compile as well as give credit grantors information on the borrowing and bill-paying habits of individuals.
Dun & Bradstreet is a famous credit reporting agency. They collect the information through public records as well as other sources for generating the credit score and report for you so that lenders may utilize this to support and determine whether to extend your credit. Credit bureaus of Canada get consumer information from lenders such as banks and collection agencies like MetCredit.
Different Credit Bureaus Have Different Information
Not every credit bureau needs to have all the information. Indeed, it depends on lenders as some lenders only report information to all three major bureaus, whereas some may report to only one or two credit bureaus. Hence, your credit information can likely be different on your reports in Equifax and TransUnion.
Types of Information Collected by the Credit Bureau
Major credit bureau requires different type of information about consumers. This information includes:
Personal details: Your legal name and address
Credit Inquiries
- Credit account information: Your payment history and status of accounts
- Collection of information and public records: Consumer proposals, bankruptcies, and tax liens
Free Credit Reports of TransUnion Canada and Equifax Canada
You can get free credit reports from both credit bureaus. However, both Equifax and TransUnion have quite different processes. For instance, Equifax provides free credit reports in two ways either through mail or in person. On the other side, to get a free credit report from TransUnion, you can mail, or sign up on their website to see your report and in-person.
Credit Pull
This term refers to the request by the financial, creditors, institutions, lenders, and other people to see your credit reports. Usually, third parties pull a consumer’s credit report to review your details and your creditworthiness before extending your credit.
Your credit history and credit score are used by lenders for making lending decisions about you. Some major decisions, like whether to give you a loan as well as the critical terms of loans like how much interest to charge and how much money to lend, are also made by the lenders.
You must know that your credit score and credit history can impact when you rent the home or get the job. Credit bureaus of Canada collect financial information such as credit provided by credit unions, banks, and retail operators, and bad cheques that are returned by your financial institution.
Factors Considered When Calculating the Credit Score
Various factors are considered by three major credit bureaus when they calculate your credit score. Some of them are credit utilization, payment history, length of customer’s credit history, credit type, and new credit inquiries.
Things Decline Your Credit Score
When applying for credit, you must be aware of the things that can influence your credit score negatively or can decline your credit score. These things are collections, high credit balances, missed payments, ample credit applications, liens, and bankruptcies that can have a negative impact on your credit score.
Identity Theft
Identity theft is a common issue nowadays. If you feel that you are the victim of identity theft, you are supposed to contact credit reporting agencies active in your province. According to the research, in 2016 total complaints regarding identity theft in Canada were 7258.
Finding an Error on Your Credit Report
In case you find any error on your credit report, you should contact credit bureaus and complain about providing inaccurate information. Though, the major credit bureaus have adopted a more formal procedure for consumers to eliminate incorrect information.
Monitoring Credit Scores and Reports
Another important thing is that you ought to monitor your credit scores and report from the credit bureaus since by doing this you can get opportunities to understand your borrowing potential and higher your credit score too.
By monitoring customers’ credit scores and reports, you can identify suspicious activities on your financial accounts. This will prevent them from identity theft. You can even ensure your credit profiles comprise accurate data and information by reviewing your reports. Monitoring the credit scores and reports will also support you in addressing and correcting errors, which may influence customers’ credit negatively.
What is a Good Credit Score in Canada?
In terms of granting a loan, different lender follows different criteria. As per the government of Canada, the good credit score is 660-719.
Most Important Credit Bureau is in Canada
Though all the Credit Bureaus are vital to credit bureaus in Canada, yet Equifax, as well as TransUnion, are more famous among consumers and lenders. According to the research, around 90 percent of lenders in the US are using the advanced version of the FICO credit score. You should avoid the highest and lowest numbers given by TransUnion and Equifax. The most important credit bureau is the middle credit score.
Most lenders are using this model to check the credit score of consumers. Equifax also uses this model to check and calculate the credit score of its consumers. Equifax Canada provides credit alerts and monitoring so that you can review your credit utilization and also protect yourself from fraud.
TransUnion and Equifax both provide paid debt management education and help. Equifax credit bureau is the leader in consumer credit analytics and reporting. It offers lenders raw information and data regarding consumer credit.
FICO scores are supposed to most accurate credit score in Canada. This model has been used by various major companies including banks.
Debt Collection Agencies
The debt collection agencies are firms that ensure that money owed to the ventures, by the debtor, is repaid. They mainly gather unpaid accounts and for this, they hire collection agencies. The collection agencies garner past-due debts and unpaid from people or alternative ventures.
How to Get a Higher Credit Score in Canada
If you want a better credit score, you must have a longer credit history as credit agencies will get more information to work with. Many lenders even determine the credit history as well as eligibility for the credit application as per the Equifax credit score. Hence, it is very important for you to have a great credit score, if you have applied for a credit card.
You can raise your credit score in multiple ways. Initially, you have to monitor your history of payments like making payments on time, utilizing credit wisely, restricting the number of credit applications or credit checks, and using diverse types of credit.
There are various credit bureaus in Canada like Experian, Equifax, and TransUnion from which you can get credits. However, it is important for you to acquire enough information before applying for credits. You must keep on tracking your credit reports to be protected from identity theft issues.
How to Contact the Credit Bureau of Canada
There are two helpline numbers through which you can contact the credit bureau of Canada. You can call TransUnion Canada at-1-800-797-3992 or can visit the website www.transunion.ca and contact Equifax Canada you can call 1-800-465-7166 or visit the website at www.equifax.ca.
You can also contact the credit bureau in Canada at 888-397-3742. This number may also be contacted to order a credit report. You can also follow these links: 888-397-3742- 6 (1-888 EXPERIAN). When you will register with this number, you will be qualified for the immediate scam alert, which will take impact right away.
Last Updated on by alishbarehman
