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Decoding Credit Reports: How Long Do Financial Faults Stick Around?

Navigating the process of rebuilding your credit following bankruptcy, delinquent payments, excessive debt, or a lack of credit history can be a challenging endeavor. To effectively manage your finances and address the impact of debt repayments on your monthly expenses, it is advisable to seek credit counselling for expert guidance and support.

To help you further with the management of your credit report, our team at D. & A. MacLeod Company Ltd. has compiled some useful information and tips. We provide professional credit counselling and debt management services to clients Ottawa and the Eastern Ontario region.

A young man sitting on a couch using a calculator and a computer to review his financial statements

How Long Do Certain Items Stay on a Credit Report and After How Long Before They Can Be Removed?

Your credit report is a summary of your credit history. Lenders, landlords, and financial institutions often use it to assess your creditworthiness when you apply for a new rental, a loan, or a credit card. Knowing how long certain items stay on your credit report can, therefore, help you maintain good credit.

  • In Ontario, bankruptcies are removed from your credit report 7 years after you’ve been discharged.


  • Consumer proposals, which are legal agreements set up by insolvency trustees, are removed 3 years after the completion of the consumer proposal (obtained a certificate of full performance).


  • In Ontario, if you have a judgment, which is a debt that you legally owe through the courts, this information is kept on file for 7 years.


  • Negative information regarding credit cards and loans, such as late or missed payments, can be kept in your credit report for up to 6 years.


When Does Interest Start on Credit Cards?

If you are unable to pay off your entire credit card balance by the end of the month, credit card companies begin applying interest charges immediately. This can lead to a rapid increase in credit card debt. It is crucial to have a clear understanding of how credit card interest rates function to effectively manage your debt. Check out our guide on credit card interest and debt to learn more.

What Happens When You Don't Pay Your Credit Card Bill?

  • You may have to pay a late fee.

  • Your interest rate will rise.

  • Your credit score will be negatively impacted.

  • You might get sued.

Repairing Your Credit

Here are some tips on how you can repair your credit score:

  • Request a free credit report.

  • Pay your bills on time.

  • Show proof of steady income.

  • Increase your credit limit.

  • Don’t apply for large loans if you don’t have an established credit history.

  • Seek professional credit counselling.


Visit our website to learn more about how to effectively repair your credit.


The Importance of Professional Credit Counselling

If your ability to cover your monthly expenses is being hindered by debt repayments, it is advisable to seek professional help for guidance on managing your finances effectively. Local licensed insolvency trustees D. & A. MacLeod Company Ltd. provides professional credit counselling in Ottawa and across the region of Eastern Ontario.

We provide appointments both in-office and virtually with offices in Brockville, Cornwall, Kanata, Kingston, Ottawa, Pembroke and Smiths Falls. Let us help you find a new beginning™, contact us today to book a free and confidential session.




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