Credit agencies, also called credit bureau, are private companies who collect information about your credit habits, then accumulate it and transmit it to the proper authorities. In Canada, Equifax and TransUnion are the two major credit agencies.
These agencies sell credit reports to banks, financial institutions, cellphone, credit cards and insurance companies, government agencies, employers and all business owners and landlords who need it in order to make financial decisions.
All information found in your report comes from your previous relationships with different lenders, collection agencies and public reports presented before the courts (for example: alimony).
Who can use your credit report?
Your credit report can be used in the following cases:
- • When you are applying for a loan or for credit;
- When a person is trying to recover money you owe;
- When you are applying for a rent;
- When you are applying for a job;
- When you are applying to get insurances;
- When you are asking for money for a specific purchase.
It is important to know that lenders, employers and landlords must have your permission to access your report. Generally, if you sign a credit application, you agree that the person can consult your report. Also, during a credit application, you accept the fact that the potential lender may subsequently communicate your information to credit agencies.
Each Canadian province has its own laws regulating access to your report. Thus, in some provinces, judges, police officers and other government officials can access it without your consent. Moreover, depending on where you live in Canada, your credit score can regulate whether or not you are eligible for insurances.
Source: Credit Auto Montreal