Credit bureaus may keep positive or negative information on your credit report. This includes information on payments that you did or didn’t make on time. Credit bureaus keep this information on your credit report for a certain period of time.
The exact time varies based on:
- the type of financial information
- your province or territory
- the credit bureau that created the report
Positive information
Positive information includes credit accounts that you’ve paid as agreed and have no negative history. Credit bureaus keep positive information on your credit report for different periods of time.
The information may include the:
- type of loan
- length of the loan
- initial amount of the loan
- repayment score
Active credit accounts that you’ve paid remain on your Equifax credit report as long as the account is open. Closed accounts stay on your Equifax credit report for up to 10 years.
TransUnion will keep a record of positive credit information for a period of 20 years. They’ll keep the information no matter if the account is active or closed.
The positive information kept on your credit report may improve your credit score.
Negative information
Negative information may include late or missed payments, accounts that have been sent to collection agencies, bankruptcies, and more. According to provincial laws, credit bureaus may keep negative information on your credit report for only a certain period of time. For example:
- negative information about accounts such as credit cards and loans may stay up to 6 years
- credit checks by lenders; Equifax keeps this information for 3 years, while TransUnion keeps it for 6 years
- bankruptcy stays on your report for 6 or 7 years, depending on the province
Negative information on your credit report may hurt your credit score.
Judgments
A judgment is a debt you owe through the courts due to a lawsuit. For example, if somebody sues you, and you lose, then the debt may show up on your credit report.
Usually, this information stays on your credit report for 6 years.
However, TransUnion keeps this information on file for 7 years in the following provinces:
- Newfoundland and Labrador
- Ontario
- Quebec
TransUnion keeps this information on file for 10 years in Prince Edward Island.
Debt management plans
A debt management plan is an informal proposal your credit counsellor makes to your creditors on your behalf. It allows you to consolidate your debts into one affordable monthly payment.
Credit bureaus remove all records from a debt management plan from your credit report 2 years after you pay off your debts.
Consumer proposals
A consumer proposal is a legal agreement set up by a licensed insolvency trustee. The trustee creates a proposal for your creditors where they agree to let you pay off a percentage of your debt.
Equifax and TransUnion remove a consumer proposal from your credit report either:
- 3 years after you pay off all the debts included in the proposal, or
- 6 years after you sign the proposal (whichever is sooner)
Bankruptcy
Typically, both Equifax and TransUnion remove a bankruptcy from your credit report 6 years after the date you're discharged.
TransUnion removes a bankruptcy from your credit report 7 years after you're discharged in the following provinces:
- Newfoundland and Labrador
- Ontario
- Prince Edward Island
- Quebec
If you declare bankruptcy more than once, the bankruptcies will appear on your credit report for 14 years.
Additional information
Contact one of Canada’s 2 main credit bureaus to learn more about how long information stays on your credit report.
Related links
FAQs
Most negative information generally stays on credit reports for 7 years. Bankruptcy stays on your Equifax credit report for 7 to 10 years, depending on the bankruptcy type. Closed accounts paid as agreed stay on your Equifax credit report for up to 10 years.
How long does information stay on your credit report? ›
Most negative information generally stays on credit reports for 7 years. Bankruptcy stays on your Equifax credit report for 7 to 10 years, depending on the bankruptcy type. Closed accounts paid as agreed stay on your Equifax credit report for up to 10 years.
Is it true that after 7 years your credit is clear? ›
In general, most debt will fall off of your credit report after seven years, but some types of debt can stay for up to 10 years or even indefinitely. Certain types of debt or derogatory marks, such as tax liens and paid medical debt collections, will not typically show up on your credit report.
What is the 7 year credit rule? ›
The 7-year rule means that each negative remark remains on your report for 7 years (possibly more depending on the remark). However, after that period has ended, a remark will most probably fall off of your report.
How many years do mistakes remain on your credit report? ›
Most of it must be taken off after seven years. Some items, such as bankruptcy, can remain for up to 10 years, and other items, such as civil judgments or tax liens no longer are reported at all.
How can I remove old information from my credit report? ›
How to remove negative items from your credit report yourself
- Get a free copy of your credit report. ...
- File a dispute with the credit reporting agency. ...
- File a dispute directly with the creditor. ...
- Review the claim results. ...
- Hire a credit repair service. ...
- Send a request for “goodwill deletion” ...
- Work with a credit counseling agency.
Although the debt won't be factored into your credit score after seven years, there are still consequences. When you stop paying your debt, the creditor will start charging late fees and interest will continue to accumulate, increasing the balance you owe.
What is the 609 loophole? ›
2) What is the 609 loophole? The “609 loophole” is a misconception. Section 609 of the Fair Credit Reporting Act (FCRA) allows consumers to request their credit file information. It does not guarantee the removal of negative items but requires credit bureaus to verify the accuracy of disputed information.
When can a debt no longer be collected? ›
Does unpaid debt go away after 7 years? ›
Under the Fair Credit Reporting Act (FCRA), most negative information, including unpaid credit card debt, must be removed from your credit report after seven years. This seven-year period typically begins 180 days after the account first becomes delinquent.
The amount of time that a debt collector can legally pursue old debt varies by state and type of debt but can range between three and 20 years. Each state has its own statute of limitations on debt, and after the statute of limitations has expired, a debt collector can no longer sue you in court for repayment.
What is the 60 credit rule? ›
Continuing and FTEN university students must achieve a course credit pass rate of 60 percent for the end of the 2024 academic year to succeed academically for 2025 funding year.
Does your credit reset after 6 years? ›
Judgments, bankruptcies, and insolvencies show on your credit report for 6 years from the court order date, with some exceptions: Judgments that are paid off within 1 month from the date the order was issued will be 'set aside' and no longer appear on your credit report.
How long until your credit history is wiped? ›
What stays on a credit report?
| This type of information | Stays on your credit report for |
|---|
| Default | 5 years |
| Financial hardship information | 1 year |
| Repayment history | 2 years |
| Serious credit infringement | 7 years |
5 more rowsA credit reporting company generally can report most negative information for seven years. Information about a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
Do collections go away after paying? ›
Even if you pay it, a collection account stays on your credit report for seven years from the date you first missed a payment. However, once you pay off the debt, it will show as paid when your credit report is updated—typically within 30 days of you making the payment.
Do charge-offs go away after 7 years? ›
Yes, charge-offs should be removed from your credit reports after seven years. However, the negative impact on your credit score may gradually decrease over this period. After seven years, the mark should automatically fall off your credit reports, but it's still a good idea to confirm it's actually gone.
How long does it take to clear a bad credit history? ›
If you fail to make a payment or get court-ordered, it will remain on your credit profile for six years. It will likely have a negative effect on your credit score and it will only be deleted after six years unless you negotiate a settlement, in which case the information can be removed sooner.
Which information can stay on your credit report indefinitely? ›
The good news is that positive and neutral information can stay on indefinitely and might help improve your credit scores.
