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A trade line is a single account entry on a borrower’s credit report — a credit card, line of credit, loan, or previous mortgage — showing its balance, limit, and payment history.
Each trade line tracks details such as the account type, opening date, credit limit or original loan amount, current balance, and a month-by-month record of whether payments were made on time. Together, a borrower’s trade lines make up the bulk of their credit report.
The number and age of a borrower’s trade lines contributes to whether their file is considered established or a thin credit file, which in turn feeds into their credit score. Several trade lines with a long, on-time history generally build a stronger file than one or two recently opened accounts.
Two bureaus, same concept: Equifax Canada and TransUnion Canada each maintain trade line records independently, so details can differ slightly between the two.
Includes account type: trade lines are categorized by type — credit card, line of credit, instalment loan, or mortgage — which lenders use to understand a borrower’s credit mix.
Builds the credit report: the credit report is essentially a compilation of a borrower’s trade lines plus inquiries and public records.
Age and volume matter: a borrower with very few or very new trade lines is described as having a thin credit file, which can affect scoring.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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