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| {{REVIEWEDPLS | reviewer = [http://www.leighco.ca/wendy-andersen Wendy Andersen], Digby Leigh & Company|date= October 2017}} {{Dial-A-Law TOC|expanded = money}} | | {{REVIEWEDPLS | [https://leighco.ca/wendy-andersen Wendy Andersen], Digby Leigh & Co. and [https://www.lawsociety.bc.ca/lsbc/apps/lkup/mbr-details.cfm?encrypted=%2C%27%2A%3B%5E%200Y%2D%24%5C%3D%3EG%3F%5D%5D%0A Casey Harris], Barrister & Solicitor|date= February 2020}} {{Dial-A-Law TOC|expanded = money}} |
| A '''credit report''' shows your history of paying bills and borrowing money. Banks and others considering doing business with you look at your credit report to decide whether you’re trustworthy.
| | Your credit report shows your history of paying bills and borrowing money. It’s used to calculate your credit score. Here are key things to know about how credit reports work. |
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| ==Understand your legal rights== | | ==What you should know== |
| | ===Where your credit report and credit score come from=== |
| | Say you open a new line of credit at the bank. Or you’re late paying your phone bill. For events like these, the bank or business you’re dealing with reports the information to a '''credit reporting agency'''. |
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| ===You have the right to see your credit report for free===
| | There are two main credit reporting agencies in Canada: Equifax and TransUnion. They gather your information into a '''credit report'''. |
| A credit report contains details of a person's history of paying bills and borrowing money, and other information about them. Credit reports are prepared by '''credit reporting agencies''', also called credit bureaus. The two main ones in Canada are [https://www.consumer.equifax.ca/ Equifax] and [https://www.transunion.ca/ TransUnion]. These agencies collect information from banks and businesses, and from public documents like court and marriage records.
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| Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2003-c-63/latest/sbc-2003-c-63.html#sec23_smooth law in BC], you have the right to see your credit report. The credit reporting agencies must mail you a free copy if you ask. You can call Equifax toll-free at 1-800-465-7166 or TransUnion at 1-800-663-9980.
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| ===Your credit score is not part of your credit report===
| | You’re entitled to a free copy of yours. We offer guidance on how to get it. See [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/credit-reports/ordering-your-credit-report ordering your credit report]. |
| Credit reporting agencies use a formula to turn the credit information they have about you into a '''credit score'''. Your score, also called your credit rating, can range from 300 to 900. A high score is good.
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| You won't see your credit score on your credit report. But for a fee, you can get your credit score from [https://www.consumer.equifax.ca/ Equifax] or [https://www.transunion.ca/ TransUnion].
| | The credit reporting agencies plug your credit information into mathematical formulas to come up with your '''credit score'''. A high credit score is good. It means you’re a good bet to lend money to — because you’re seen as likely to pay it back. |
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| {| class="wikitable"
| | ===Your credit report includes credit information=== |
| |align="left"|'''Tip'''
| | Your credit report is really the story of you and your money. Your history of borrowing, paying back, and covering your bills. The moment you get your first credit card or take out your first loan, the credit reporting agencies open a file on you. |
| For more information on credit scores, see People’s Law School’s tips on [https://www.peopleslawschool.ca/everyday-legal-problems/money/credit-reports/improving-your-credit-score improving your credit score].
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| |}
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| ===Your consent is needed (with some exceptions) for someone to see your credit report=== | |
| Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec106_smooth law in BC], a credit reporting agency can't share your credit report without your permission. (There are three exceptions to this rule, which we will explain.)
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| ====When someone asks to see your credit report====
| | Your file grows as you do business with banks and companies. These “creditors” regularly report details about you to the credit reporting agencies. |
| Banks and other lenders, potential employers and landlords might want to see your credit report to see if you are trustworthy. This is called a '''credit check'''. It helps them decide whether to lend you money, hire you, or rent to you.
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| You don't '''have''' to consent to a credit check. If you refuse, the bank or other party requesting the credit check can also refuse to do business with you.
| | For example, when you open an account. If you miss payments. What your credit limit is. |
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| Your consent to a credit check is sometimes folded into an application for credit, employment, or tenancy. By signing the application, you agree to the check. But by law, the consent must be prominently displayed and easy to understand.
| | ===What counts as “credit information”=== |
| | '''Credit information''' is broadly defined. It includes your history of paying bills and borrowing and paying back money. |
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| ====Situations where your consent is not required====
| | But it also includes: |
| Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec108_smooth law in BC], there are certain situations where credit reporting agencies '''don't''' need your consent to share a copy of your credit report. You have no choice when the credit report is requested by:
| | * your name and age |
| *the federal, provincial, or municipal government | | * where you live now and where you’ve lived in the past |
| *the police, for the purposes of an investigation | | * where you work and roughly how much you earn |
| *anyone with a court order authorizing access to your credit report | | * your education and work qualifications |
| | * your spouse’s name and age |
| | * your marital status |
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| ===Information that cannot be in your credit report===
| | Any of these details can appear in your credit report. So can information collected from public records — for example, court or marriage documents. |
| Under the [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec109_smooth law in BC], some information '''can't''' be part of your credit report:
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| *information about any member of your family other than your spouse
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| *your race, religious beliefs, skin colour, sexual orientation, ethnic background or political views
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| *criminal convictions that have been discharged or pardoned
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| *criminal charges that were withdrawn or dismissed
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| There's also information that '''can't''' be part of your credit report '''if it is more than six years old''':
| | ===What can’t be in your credit report=== |
| *a court judgment against you (unless you haven't paid what you owe) | | Certain information ''can’t'' be in your credit report. Including: |
| *a criminal conviction | | * information about members of your family (other than your spouse) |
| *a bankruptcy (unless you've been bankrupt more than once) | | * your race, religious beliefs, skin colour, sexual orientation, ethnic background, or politics |
| *any other negative information about you | | * criminal convictions that have been discharged or pardoned |
| | * criminal charges that were withdrawn or dismissed |
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| ===You have the right to dispute anything on your credit report===
| | As well, some information can’t be in your report if it’s more than six years old: |
| Under [https://www.canlii.org/en/bc/laws/stat/sbc-2003-c-63/latest/sbc-2003-c-63.html#sec24_smooth BC law], you have the right to ask a credit reporting agency to fix any mistake you find in your credit report. You can send a letter about the error, and the credit reporting agency must take reasonable steps to check the information and respond to you within 30 working days.
| | * a court judgment against you (unless you still haven’t paid the debt) |
| | * a criminal conviction |
| | * a bankruptcy (unless you’ve been bankrupt more than once) |
| | * any other negative information about you |
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| If the credit reporting agency agrees to make the correction, it must do so promptly. It must also send the new correct information to anyone who received your credit report in the last year. | | If you notice something in your credit report that shouldn’t be there, we can help you get it fixed. See [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/credit-reports/fixing-mistake-your-credit-report fixing a mistake in your credit report]. |
| If the agency doesn’t make the correction you asked for, it must make a note in your file that you asked for the information to be corrected.
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| Also, if there’s anything in your file you think should be explained, you have the right to add an explanation of up to 100 words. The credit reporting agency attaches it to your report and anyone who orders a copy sees it.
| | ===Your credit score can help you understand your credit report=== |
| | Credit reporting agencies use a formula to generate a '''credit score''' from the information they have on you. Banks, businesses, and others look at it to decide whether to lend you money. |
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| ==Get help==
| | Your credit score doesn’t appear on your credit report. But you can order it from either credit reporting agency. Visit [https://www.consumer.equifax.ca/personal/products/credit-score-report/ Equifax] or [https://www.transunion.ca/credit-score TransUnion]. |
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| ===Accessing your credit report===
| | Credit reporting agencies don’t have to say how they calculate credit scores. And lenders often have their own ways of doing the math. So your credit score might be slightly different depending on who came up with it. |
| The '''Office of the Information & Privacy Commissioner''' oversees BC's laws relating to privacy and access to information. If a credit reporting agency refuses your request for a copy of your credit report, you can ask the Privacy Commissioner to review the decision. If someone gets their hands on your credit report improperly, the Commissioner has the power to investigate.
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| :Toll-free: 1-800-663-7867
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| :Web: [http://www.oipc.bc.ca/ oipc.bc.ca]
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| ===Fixing a mistake on your credit report===
| | We offer guidance on how to boost your score. See [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/credit-reports/improving-your-credit-score improving your credit score]. |
| '''Consumer Protection BC''' can help with certain problems with credit reports. For example, where information on your credit report is over six years old, or where you were denied the opportunity to provide an explanation on your credit report.
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| :Toll-free: 1-888-564-9963
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| :Web: [http://www.consumerprotectionbc.ca/ consumerprotectionbc.ca]
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| The '''Office of the Information & Privacy Commissioner''' oversees BC's laws relating to privacy and access to information. If a credit reporting agency refuses your request to fix a mistake, you can ask the Privacy Commissioner to review the decision.
| | ===Go deeper=== |
| :Toll-free: 1-800-663-7867
| | If you're interested, we have more on everything we've covered here. S[https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/credit-reports/taking-charge-your-credit-report ee our in-depth information on taking charge of your credit report]. |
| :Web: [http://www.oipc.bc.ca/ oipc.bc.ca]
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| ===Improving your credit score===
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| The '''Credit Counselling Society of BC''' is a non-profit society that helps people better manage their money and debt.
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| :Toll-free: 1-888-527-8999
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| :Web: [http://www.nomoredebts.org/ nomoredebts.org]
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