Your credit report plays a crucial role in determining your financial health, impacting everything from loan approvals to interest rates. While these reports are typically accurate, errors do happen, and they can negatively affect your credit score. That’s why it’s essential to check your credit report regularly and dispute any inaccuracies immediately.
Table of Contents
In this guide, you’ll learn how to check your credit report for free, common errors to look out for, and how to dispute incorrect information effectively.
How to Check Your Credit Report for Free in Canada
You can access your credit report for free through the following services:
🔹 Borrowell
🔹 Credit Karma
🔹 ClearScore
Unlike hard inquiries that may lower your credit score, checking your own credit report through these services won’t affect your credit. You can review your report as often as you like to ensure accuracy.
How Often Should You Check Your Credit Report?
The Government of Canada recommends checking your credit report at least once every six months, especially if you’re planning to apply for credit.
For real-time monitoring, Equifax and TransUnion offer paid services that alert you to any suspicious activity or changes to your credit report.
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How to Read Your Credit Report
Your credit report contains various details about your financial history, including:
✅ Types of Credit Accounts – Credit cards, loans, lines of credit, etc.
✅ Mortgage Information – Details of your home loan and payment history.
✅ Debt Collections – If any of your accounts were sent to collections.
✅ Credit Inquiries – Lenders who have accessed your credit in the last three years.
✅ Public Records – Bankruptcies and other legal financial records.
✅ Payment History – Details about on-time and missed payments.
Understanding Credit Report Codes
🔹 Letters:
- I (Installment Credit) – Fixed payments, e.g., car or personal loans.
- O (Open Credit) – Variable credit limits, e.g., cell phone accounts.
- R (Revolving Credit) – Borrow and repay flexibly, e.g., credit cards.
- M (Mortgage Credit) – Mortgage loan details.
🔹 Numbers:
- 0 – New or unused account.
- 1 – Payments made on time.
- 2-5 – Late payments (ranging from 31 to 120+ days overdue).
- 7 – Debt consolidation or credit counseling in progress.
- 8 – Repossession.
- 9 – Bad debt, collections, or bankruptcy.
Knowing these codes will help you spot potential errors that could be hurting your credit score.
Common Credit Report Errors to Watch For
You have the right to dispute any incorrect information, and credit bureaus are required to correct errors for free. Here are some of the most common credit report mistakes to look out for:
🚩 Mixed Credit Reports – Your report is combined with someone else’s due to similar names.
🚩 Incorrect Personal Information – Mistakes in your name, address, SIN, or birth date.
🚩 Missing Accounts – A credit account in good standing is not listed.
🚩 Duplicate Accounts – A debt is reported more than once, making you look like you owe more than you do.
🚩 Closed Accounts Still Open – A closed credit account is still listed as active.
🚩 Former Spouse’s Debt – Your ex-spouse’s debt appears on your report after divorce.
🚩 Old Bad Debts – Negative marks older than 7 years should no longer appear.
🚩 Identity Theft – Accounts you never opened are on your report.
If you notice any of these issues, it’s time to dispute the errors.
How to Dispute Credit Report Errors in Canada
Step 1: Gather Evidence
Before filing a dispute, collect supporting documents, such as:
📌 Credit card statements
📌 Loan agreements
📌 Proof of payment
📌 Identity verification (e.g., ID or Social Insurance Number)
Step 2: Contact the Credit Bureaus
You must file separate disputes with both Equifax and TransUnion.
📍 Equifax Canada
- By Mail:
Equifax Canada Co. Consumer Relations Department
Box 190, Jean Talon Station
Montreal, Quebec
H1S 2Z2 - By Fax: (514) 355-8502
📍 TransUnion Canada
- By Mail:
TransUnion, Attention: Consumer Relations
3115 Harvester Road, Suite 201
Burlington, Ontario
L7N 3N8 - Online Dispute: Available on the TransUnion website.
Step 3: Work with Your Financial Institution
In some cases, your bank or lender can correct errors directly with the credit bureaus, which may speed up the dispute process.
Step 4: Add a Consumer Statement
If a dispute doesn’t get resolved, you can add a free consumer statement to your credit report. This lets future lenders see your side of the story.
Step 5: File a Complaint
If you feel you were treated unfairly, you can submit a complaint to the consumer affairs office in your province.
Dispute investigations typically take about 30 days, so be patient and follow up if necessary.
What If There Are No Errors, But I Was Still Denied Credit?
If your credit report is accurate but you were denied a loan, the issue may be poor credit history. To improve your credit score:
✔️ Make on-time payments – Even one late payment can lower your score.
✔️ Lower your credit utilization – Keep your balances below 30% of your credit limit.
✔️ Avoid applying for too much credit at once – Too many credit inquiries can hurt your score.
✔️ Use different types of credit – A mix of loans and credit cards can help.
What If I Have No Credit History?
If you have no credit history, you need to build it from scratch. A small installment loan or secured credit card can help you establish credit and improve your financial future.
Final Thoughts
Checking your credit report regularly and disputing errors is essential to maintaining a healthy credit score. Mistakes can lower your score and affect your ability to borrow money, so stay proactive and review your credit file at least twice a year.
By following this guide, you can ensure your credit report is accurate, up to date, and working in your favor. 💳💰.