The process of credit scoring in Canada is extremely similar to that in the U.S. A Canadian who wishes to apply for credit, new employment or housing may be subject to a review of his score. The lender determines his eligibility based on the score itself and other varying factors, such as how much debt he currently has and if he has made timely payments to his creditors in the past.
The Facts
Until 2009, Canada used the same three credit bureaus that the U.S. uses: Experian, Equifax and TransUnion. In April of 2009, the Canadian branch of Experian closed, but the other two credit bureaus remain open. The credit reporting agencies use the same credit scoring formula in both the U.S. and Canada.
Time Frame
The information in Canadian credit reports that determines consumers' credit scores is subject to reporting periods that vary by province. Unlike U.S. laws, which are federal, regarding reporting periods for credit information, there are no national laws in effect in Canada that regulate the amount of time a debt may appear on a credit report.
Considerations
When a Canadian pulls his credit report online, it appears in the exact same format as a U.S. report. This allows Canadians who move to the U.S. to provide copies of their credit reports and scores for housing and utilities approval.
Benefits
Canadians may request free copies of their credit reports as often as they like to review their scores. As long as the request is made in writing, the Canadian credit bureaus honor the request and mail the individual a free copy of his credit report to review.
Misconceptions
Even though the same agencies that service the U.S. calculate Canadian credit scores, U.S. institutions can't pull a Canadian credit report. This is because institutions track Canadians via their Social Insurance Numbers, rather than Social Security Numbers, and the credit bureaus separate files by country.
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