When it comes to managing your finances, knowing your credit score is essential. It affects everything from loan approvals to interest rates. In Canada, two main credit bureaus, Equifax and TransUnion, track your credit history. But how do you check your credit score in Canada for free?
Why Check Your Credit Score?
Before diving into the methods, let's understand why knowing your credit score is important:
- Loan Approvals: Lenders use your credit score to assess the risk of lending you money. A higher score increases your chances of approval.
- Interest Rates: A good credit score can get you lower interest rates on loans and credit cards. See if you can use a credit card for passport fees.
- Financial Health: Monitoring your credit score helps you track your financial health and identify any errors or fraudulent activity.
- Rental Applications: Landlords often check credit scores to assess potential tenants' reliability.
Free Online Services
Several online services provide free access to your credit score in Canada:
- Borrowell: Offers free Equifax credit scores and reports. It also provides personalized tips to improve your credit score.
- Credit Karma: Provides free TransUnion credit scores and reports. It also offers credit monitoring and alerts.
These services typically require you to create an account, providing some personal information to verify your identity. They make money through recommendations for financial products, but checking your score is free.
Requesting a Free Credit Report by Mail
Both Equifax and TransUnion allow you to request a free copy of your credit report by mail. This method doesn't provide your credit score directly, but it gives you detailed information about your credit history. Here are some tips on how to set a PIN for your GO2bank secured credit card.
To request a report, you'll need to download and complete a request form from their websites, then mail it to the specified address along with copies of your identification documents.
Checking Through Your Bank
Some Canadian banks offer free credit score monitoring as part of their customer benefits. Check with your bank to see if they provide this service. It’s a convenient way to keep an eye on your credit score without additional sign-ups.
Important Considerations
- Frequency: You can typically check your credit score as often as weekly or monthly through online services. You are entitled to one free credit report by mail from each bureau per year.
- Impact on Your Score: Checking your own credit score is a "soft inquiry" and does not affect your credit score. However, when lenders check your credit, it's a "hard inquiry," which can slightly lower your score, especially if you have multiple inquiries in a short period. Learn about hard pulls when getting another Chase credit card.
- Accuracy: Regularly review your credit report for any errors or discrepancies. Report any issues to the credit bureau immediately to ensure your credit information is accurate.
Conclusion
Checking your credit score in Canada for free is straightforward, thanks to various online services and the option to request reports by mail. Regularly monitoring your credit score is a proactive step towards maintaining good financial health. Take advantage of these free resources to stay informed and in control of your credit standing.
