The two major credit reporting agencies are EQUIFAX and TRANS UNION. Most credit granters use both. The agencies report the information provided to them by creditors including your payment history and the amount of your debt to them.
Since lenders use your credit file as a decision making tool, it is important that your file is accurate and complete. You can review your file at any time. If you notice errors on your file you should advise the agency in writing so it can be corrected.
Trustees do not report to or have access to Credit Bureau information.
What Does Your Credit Rating Mean?
Your credit rating is based on how you pay your debts.
0. – Too new to rate
1. – Pays account as agreed
2. – Pays over 30 days, but less than 60, only one payment past due
3. – Pays over 60 days but less than 90, only 2 payments past due
4. – Pays over 90 days, but less than 120, three or more payments past due
5. – Account is at least 12 days overdue, but is not yet rated as bad debt.
6. – This code is not used
7. – Making regular payments under a consolidation order (Orderly Payment of Debts), consumer proposal or similar arrangement
8. – Repossession, foreclosure or voluntary return of asset by the consumer
9. – BAD DEBT – placed with a collection agency; unable to locate; or sought protection under the Bankruptcy and Insolvency Act
In most cases negative information on your credit file will remain on your record for six years.