It is a little known fact that in Canada cell phone providers are now reporting on credit bureaus. In the past, only one of the agencies was reporting late payments and delinquencies on the bureau. Now, both Equifax and Transunion are listing a trade line on the bureau for all and any cell phone contract plans. So regardless if the client is paying on time or late the cell phone provider will be reporting the cost of the phone plan on the credit report until the 2 year contract is completed.
The fact cell phone providers are now reporting on credit bureaus may not have a negative impact on a specific credit report. However, once this trade line is set up and reported to the bureau any late payments or break of the contract will now result in a negative code on the consumer report. “We have not seen this kind of reporting where any new cell phone contract is set as a trade line on a client’s bureau.” comments Pauline Tonkin, Independent Mortgage Specialist, Innovative Mortgage Solutions – DLC. “We have tried and been unable to reach a contact at the cell phone providers to confirm if this is standard policy for all or for specific clients. However, it is important that consumers be aware of this change in policy and realize the importance of maintaining a good standing with their cell phone provider” .
To listen to some video on what this means to you, click below.
Cell Phone Providers Now Reporting on Your Credit Bureau
cellphoneprovidersarenowreportingoncreditbureaus
What is a credit report?
Your credit history is recorded in files maintained by at least one of Canada’s major credit-reporting agencies: Equifax Canada and TransUnion Canada. It is possible to obtain your credit file for free. Please consult the agencies’ websites in order to obtain more information. These files are called credit reports. A credit report is a “snapshot” of your credit history. It is one of the main tools lenders use to decide whether or not to give you credit.
Your credit file is created when you first borrow money or apply for credit. On a regular basis, companies that lend money or issue credit cards to you, including banks, finance companies, credit unions, retailers, send specific factual information related to the financial transactions they have with you to credit reporting agencies.