Canada's credit system runs through two main credit bureaus: Equifax and TransUnion. Both collect information about your borrowing and repayment history, but they're separate companies with slightly different data and scoring models. Here's what every newcomer needs to know.
What Is a Credit Bureau?
A credit bureau is a company that collects financial data about you, loans, credit cards, payment history, bankruptcies, and compiles it into a credit report. Lenders pay to access your report when you apply for credit. Your report is what generates your credit score: a number between 300–900 in Canada.
Equifax vs TransUnion: The Differences
Both bureaus gather similar data, but not always identical:
- Different lenders report to different bureaus (some report to both, some to only one)
- The scoring models they use can produce slightly different numbers
- You might have a 680 with Equifax and a 705 with TransUnion. This is normal
In practice, both scores matter. Mortgage lenders typically pull from both. Many credit card companies pull just one. It's worth monitoring both.
What Affects Your Score
| Factor | Weight | |---|---| | Payment history | ~35% | | Credit utilization (how much of your limit you use) | ~30% | | Length of credit history | ~15% | | Credit mix (cards, loans, etc.) | ~10% | | New credit inquiries | ~10% |
Paying on time and keeping your balances low are by far the most important factors.
Score Ranges in Canada
- 300–559: Poor, will struggle to get approved for most products
- 560–659: Fair, some approvals, but high interest rates
- 660–724: Good, most products available at reasonable rates
- 725–759: Very good, competitive rates
- 760–900: Excellent, best rates available
How to Check Your Score (Free)
- Equifax: Free monthly score via Borrowell (borrowell.com)
- TransUnion: Free weekly score via Credit Karma (creditkarma.ca)
- Your bank: RBC, Scotiabank, TD, BMO, and others now offer free credit score access in their apps
You're also entitled to one free credit report per year from each bureau directly, which shows the full detailed report (not just the score).
Ottawa Tip
If you're apartment hunting in Ottawa and your score is thin, ask the bureau directly for your free annual report before a landlord checks it. That way you know exactly what's on file and can address any errors, a surprising number of reports have mistakes on them.
Hard vs Soft Inquiries
Soft inquiry: Checking your own score, pre-approval checks. Does NOT affect your score.
Hard inquiry: A lender checks your score when you apply for credit. Each hard inquiry can drop your score by 5–10 points temporarily. If you're rate-shopping for a mortgage, multiple hard inquiries within 14–45 days are typically counted as one.
The bottom line: check your score regularly (it's free), understand what's driving it, and focus on payment history above everything else.
