Your credit report is built primarily from your credit history. It compiles all the information about your credit habits and creates a tool that can be used by lenders and creditors to assess your creditworthiness. Although your credit report represents a good deal of your credit history, this information is not recorded for life on your record. Now, you probably need to ask yourself how long this information remains-such engraved on your record. That’s what we’ll take a closer look at, so you’ll know exactly how long your credit information will affect this one.
What type of credit information appears on my credit report?
Your credit report contains all the important information, good and bad, about your credit accounts. A credit account is a general term used to describe credit cards, lines of credit and loans. If you have one or all of these credit products, they will appear on your credit report with the following information:
- Payment history, both on time and late
- Insufficient funds
- Accounts closed due to fraud
- Debt Management Programs
- Consumer proposals
- Legal judgments
- Accounts in collections
Most lenders and creditors report directly to one of Canada’s two major credit bureaus, TransUnion and Equifax. Then, these offices create credit reports that are used by creditors and lenders to assess the creditworthiness of a potential borrower.
How long are paid credit accounts in good standing in my report?
A credit account that has been paid on time and in good standing will remain on your credit account for 20 years after the last day it was active. Often, people mistakenly believe that old credit accounts are bad news and do not want them in their credit report. In fact, this is the type of information you want to display in your credit report. Old accounts that have been paid on time show potential future lenders that you can manage your credit responsibly. A long and positive credit history is created using credit and taking loans.
How long are overdue accounts on my report?
When it comes to deficient credit accounts or other negative credit information, it is better for your overall credit health if this information is removed from your record as soon as possible. It is this type of information that will reduce your credit rating and hinder your ability to be approved for the credit and loan products you need. Unfortunately, negative credit information stays in your credit file as it is used by creditors and lenders to assess your level of risk. The good news is that negative credit information does not stay in your credit report for as long as the credit information is positive. Here is a detailed list of the negative information that may appear in your credit report and how long each one will stay there.