Your credit report is an important part of your financial health. It provides a snapshot of your credit history and can help lenders understand how you’ve managed credit over time.
Reviewing your credit report regularly is a good financial habit. It helps you stay informed and gives you an opportunity to check that everything looks right.
If you ever notice information that doesn’t seem accurate, you can request a review. Here’s what to know about the dispute process and how it works.
What is a credit report dispute?
A credit report dispute is a request to investigate information you believe is incorrect on your credit report.
In Canada, the two main credit bureaus are Equifax Canada and TransUnion Canada. These companies collect information about your credit history and use it to create credit reports.
Credit Karma Canada provides credit information and scores from TransUnion. If you also access your credit report or score through Equifax, you can review that information separately and request corrections if necessary.
Your credit report contains details about how you’ve managed credit, including loans, credit cards and payment history. This information can also be used to calculate your credit score.
If you notice something inaccurate or don’t recognize an account, you can ask the credit bureau to investigate.
Filing a dispute is free, and you can do it yourself. You don’t need to pay a third-party company to submit a dispute on your behalf.
Keep in mind that accurate negative information, such as a missed payment that actually happened, will typically remain on your report for the applicable reporting period.
What should you look for on your credit report?
Reviewing your credit report regularly can help you stay familiar with the information it contains.
Some things to look for include:
- Personal information: Check that your name, mailing address and date of birth are accurate.
- Payment history: Review whether payments are reported correctly.
- Account information: Make sure the credit cards and loans listed belong to you.
- Account balances: Check that reported balances and account details are consistent with your records, allowing for reporting delays.
- Outdated information: Look for negative information that may have remained on your report beyond the applicable reporting period.
If you also review your credit information through Equifax, keep in mind that the information may differ from what’s reported by TransUnion.
How do you file a credit report dispute?
If you find information you believe is incorrect, there are a few steps you can take.
Step 1: Review your credit report
Start by reviewing your TransUnion credit report through Credit Karma.
Check your personal information, account details, balances and payment history.
Make note of any information that appears incorrect or unfamiliar.
Step 2: Gather supporting documents
Before submitting a dispute, gather documents that support your claim. Depending on the information you’re disputing, these may include:
- Credit card or bank statements
- Payment receipts
- Correspondence with lenders
- Account statements
- Valid identification documents
Having supporting documentation ready can help the credit bureau investigate your claim.
Step 3: Submit your dispute
If you find inaccurate information on your TransUnion credit report, you can submit a dispute directly to TransUnion.
TransUnion provides a process for disputing information on your credit report.
You can learn more about submitting a dispute or completing an investigation request through its website.
If you also access credit information through Equifax and notice an error on that report, you can contact Equifax separately to request an investigation.
Step 4: Contact the lender if necessary
You may also want to contact the lender or financial institution that provided the information.
Explain what you believe is incorrect and provide any supporting documents.
If the lender confirms that the information is inaccurate, it can take steps to correct its records and report the updated information to the credit bureau.
Contacting the lender directly may help resolve certain issues, but it doesn’t replace filing a dispute with the credit bureau.
Step 5: Review the investigation results
Once you’ve submitted your dispute, the credit bureau will investigate the information.
This may involve contacting the lender or organization that originally reported it.
If the information is confirmed to be inaccurate, your credit report should be updated.
If the information is verified as accurate, it may remain on your report.
How long does a credit report dispute take?
Credit bureaus generally aim to investigate disputes within a reasonable period.
Some investigations may be completed within approximately 30 days, although timelines can vary depending on the credit bureau, the nature of the dispute and the information required.
If additional documentation is needed, the process may take longer.
Check with TransUnion for current processing timelines and updates on your dispute.
What happens if your dispute is rejected?
If the credit bureau determines that the information is accurate, it may remain on your credit report.
However, you may have additional options if you believe the investigation did not resolve the issue. You can:
- Contact the lender directly: Ask the lender to review the information and explain why you believe it’s incorrect.
- Request a consumer statement: You may be able to add a statement to your credit report explaining your position. Word limits and requirements can vary by province and credit bureau.
- Escalate your complaint: Depending on the circumstances, you may be able to contact your provincial or territorial consumer affairs office or another appropriate regulatory body.
Keep copies of your correspondence and supporting documents throughout the process.
How long does negative information stay on your credit report?
Not all negative information stays on your credit report for the same amount of time.
Reporting periods can vary depending on the type of information, the province or territory and the credit bureau.
For example, missed payments and collection accounts may remain on your report for several years. Bankruptcy information may remain longer in certain circumstances.
Accurate negative information generally cannot be removed early simply because you file a dispute.
However, if information is inaccurate or remains on your report beyond the applicable reporting period, you can request an investigation.
Why is it important to check your credit report regularly?
Your credit report plays an important role in your financial health.
Lenders may review your credit history when deciding whether to approve you for a credit card, loan or mortgage.
Having accurate information on your report helps ensure lenders are reviewing an up-to-date picture of your credit history.
Checking your credit report regularly can help you:
- Stay familiar with your credit accounts and payment history
- Review your personal and account information
- Identify anything that may need clarification or correction
- Prepare for future borrowing decisions
Reviewing your own credit report does not affect your credit score.
Bottom line
Reviewing your credit report regularly is a useful way to stay informed about your financial health.
Credit Karma Canada provides credit information and scores from TransUnion. If you ever notice information that doesn’t look right, you can file a dispute directly with TransUnion for free. If you also access your credit information through Equifax, you can review that report and request corrections separately if needed.
Understanding the dispute process can help you feel more confident about managing your credit information.