Updated: April 2025  |  bremo.io financial guides

How Long Does Bad Credit Stay on Your Report in Canada?

One of the most common questions Canadians have about credit is how long negative information sticks around. The answer depends on the type of negative item. In Canada, provincial regulations set the timelines for how long credit bureaus can keep negative data on your file. Knowing these timelines helps you plan your financial recovery with accurate expectations.

General Timelines for Negative Credit Items in Canada

The following timelines apply in most provinces. Ontario, Quebec, British Columbia, and other provinces may have slight variations, but these are the standard industry-wide guidelines used by Equifax Canada and TransUnion Canada:

• Late payments (30, 60, 90 days+): 6 years from the date of the missed payment
• Collections: 6 years from the date of last activity on the account
• Judgments (court orders for unpaid debt): 6 years from the date of the judgment
• Secured loans in default: 6 years from the date of default
• First bankruptcy: 6 to 7 years after the date of discharge
• Second or subsequent bankruptcy: 14 years after discharge
• Consumer proposal: 3 years after the date the proposal is completed (fully paid), or 6 years from the date it was filed — whichever comes first
• Hard inquiries: 3 years, though their impact on your score fades significantly after 12 months

What "Date of Last Activity" Means for Collections

The six-year clock for a collection account typically starts from the date of last activity — which is usually the last date you made a payment on the account, or the date the account was sent to collections. This is important because making a payment on an old collection can reset this clock in some interpretations, potentially extending how long it stays on your report.

Does Paying Off a Collection Remove It?

Not automatically. Paying a collection account changes its status to "paid" but does not delete it from your report before the expiry date. The account will continue to appear, but marked as settled or paid. Most lenders view a paid collection more favourably than an unpaid one, so paying is generally still the right move — it just does not immediately erase the history.

Some collection agencies will agree to remove the entry from your credit report in exchange for payment ("pay for delete"). This is not legally required of them, but it is worth asking. Get any such agreement in writing before making payment.

How Old Negative Items Affect Your Score Over Time

Age matters in credit scoring. A missed payment from five years ago has far less impact on your score than one from six months ago, even though both remain on your report. Scoring models are designed to weight recent behaviour more heavily. This means:

• A bankruptcy that is 5 years old affects your score less than one from 2 years ago
• Collections that are 4+ years old have diminishing impact if you have clean recent history
• Someone with a bad mark from 5 years ago but perfect behaviour since then can have a score in the 650–700 range before the item falls off

Provincial Differences

Credit reporting timelines are governed by provincial consumer protection legislation in Canada, and there are minor variations. Nova Scotia, Ontario, British Columbia, Alberta, and Quebec may have slightly different rules for specific item types. In general, the six-year standard applies widely, but it is worth checking the specific rules for your province if you are dealing with a complex situation.

Planning Around Expiry Dates

If a significant negative item is scheduled to fall off your report in the next 12 to 24 months, factor this into your credit planning. If you need a mortgage or car loan soon, consider whether it makes sense to wait for the item to expire before applying. The difference in the rate you are offered before and after the mark falls off can be substantial.