In Canada, some organizations are allowed to look at your credit report, but only if they have a valid reason. This is called a “permissible purpose.” Most of the time, they also need your permission.
Your credit report is created and updated by two main companies: TransUnion Canada and Equifax Canada. They keep track of things like:
- Money you’ve borrowed
- How well you pay it back
- Who has checked your credit
Some services, like Credit Karma, work with TransUnion to give you free access to your credit report and credit score.
Knowing who is allowed to check your credit can help you spot problems or possible fraud.
Who Is Allowed to Check Your Credit?
Here are the most common groups that may check your credit:
1. Banks and Lenders
Banks, credit unions, and loan companies may check your credit when you apply for:
- A credit card
- A personal loan
- A line of credit
- A mortgage
2. Companies You Owe Money To
If you already owe money to a company, they may review your credit report.
Collection agencies can also check it if they are trying to collect a debt.
3. Landlords
If you apply to rent an apartment or house, a landlord may check your credit to see if you usually pay your bills on time.
4. Employers (With Your Permission)
Some employers, especially for jobs where you handle money, may ask to check your credit. They usually need your written permission first.
5. Phone and Utility Companies
Companies may check your credit when you:
- Sign up for a new phone plan
- Set up internet service
- Open a utilities account such as electricity or water
6. Insurance Companies
Sometimes insurance companies may look at your credit information to help decide your rates.
Your Rights in Canada
Canadian privacy law, of which the main one is known as PIPEDA, protects you. Organizations must:
- Have a valid reason to check your credit
- Get your permission in most cases
- Keep your personal information safe
It is illegal for someone to access your credit report without permission, or a permissible purpose.
You Have the Right To:
- Get a free copy of your credit report from services like Credit Karma, or directly from Equifax and TransUnion
- Dispute, or challenge, mistakes or credit checks you do not recognize
- Place a fraud alert on your file if you think someone is using your information
- File a complaint if your credit report was accessed improperly
What if you see a hard credit inquiry that you don’t recognize?
If you notice a hard credit inquiry on your credit report that you don’t recognize, it’s important to look into it. An unfamiliar hard inquiry could be a mistake, or it could be a sign of identity theft.
Read our full article: 4 things to do if you spot an unauthorized credit inquiry to help protect your credit and prevent further problems.
Does Checking Your Own Credit Hurt Your Score?
No. Checking your own credit is called a soft inquiry, and it does not lower your credit score.
It is a good idea to check your credit regularly so you can:
- Make sure your information is correct
- Spot unauthorized credit checks
- Catch identity theft early
Bottom line
In Canada, companies can only check your credit if they have a valid reason, and in some cases, your permission. Banks, landlords, service providers, and other organizations may review your credit when you apply for their products or services.
You have the right to know who is accessing your credit report and to challenge anything that doesn’t look right to you. Checking your own credit does not hurt your score, and reviewing it regularly can help you catch mistakes or possible fraud early.
Staying informed about who can check your credit is one of the best ways to protect your financial health.