If you're paying for your credit score, you're being taken for a ride.
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Credit scores — those three little numbers used to judge your borrowing history when you apply for credit — are essential if you want to get a big loan or a better interest rate.
For a long time, it was hard to get companies to share your score without paying.
If you haven't checked your score in a while because you didn't want to fork over $20, we have good news.
These days it's easier than ever to obtain a free credit score, and you can get one in a few different ways.
How to get a free credit report and credit score in Canada
1. Use an online service
You can get a free credit score from a service like Borrowell within minutes — and you'll receive free credit monitoring, too.
These online services provide immediate access to your credit score from at least one of the two major credit bureaus — TransUnion and Equifax Canada — giving you an accurate picture of your credit status. Just be wary of any provider that asks for your credit card information.
Looking into your credit score doesn't count as a hard inquiry into your credit and is not one of the factors that will affect your score.
However, you will need to provide some personal information, and in some cases you may need to input your social insurance number. But once you've signed up, you'll be able to check your credit score any time, free of charge.
2. Check with your bank
If you bank with Scotiabank, RBC or CIBC, you're in luck.
CIBC allows its customers to check their credit score for free using its mobile app, but you'll only get a fresh look at your score every three months.
Meanwhile, you can get a credit score and report for free through the Scotiabank or RBC online portals, or on their respective apps. Both update your credit information once per month, giving you a more accurate picture.
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3. Get one when taking out a loan
If you're one of the many Canadians rushing to apply for a mortgage as rates remain low for now, you'll receive your credit score as part of the application process.
Applying for a personal loan will also give you access to your credit score.
If your loan application is denied, the lender is required by law to show you your credit score. They'll also let you know which of the major credit bureaus provided your credit report.
If you're not satisfied with the result, you can get a copy of your credit report at no extra charge.
You can also get a credit report for free from either credit bureau; you just have to request the report by mail. Unlike Equifax, TransUnion allows you to request a free online credit report once per month.
Just be aware that your credit report won't include your credit score, even though it's used to calculate the number.
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Why you need to know your credit score
Keeping an eye on your credit score and your credit history will help ensure you get the best deal from lenders in the future.
Monitoring your credit situation lets you know when you're off track — or if there's a mistake on your report. The sooner you're aware of a problem, the faster you'll be able to correct it.
Since lenders rely on credit scores to decide whether to do business with you, maintaining a good score will increase your chances of getting approved for a new credit card or a loan at a decent interest rate.
If you don't know your current credit score, take two minutes and check it for free with Borrowell today.
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About the Author
Rudro Chakrabarti
Editor
Rudro is an editor with Money.ca. Rudro had previously served as Managing Editor of Oola, and as the Content Lead of Tickld before that.Rudro holds a Bachelor of Science in Psychology from the University of Toronto.
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Disclaimer
The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.
I'm an enthusiast and expert in personal finance, particularly credit management and credit scoring. My expertise comes from years of hands-on experience in navigating credit systems, understanding credit reports, and optimizing credit scores for various financial goals.
Understanding credit scores is crucial for anyone seeking financial stability and access to credit products. In the provided article, several key concepts related to credit scores and credit management are discussed:
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Credit Scores: Credit scores are three-digit numbers that reflect an individual's creditworthiness based on their credit history. Lenders use these scores to assess the risk of lending money to a borrower.
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Free Credit Score Services: The article highlights various methods to obtain a free credit score in Canada. These include using online services like Borrowell, which provide instant access to credit scores from major credit bureaus such as TransUnion and Equifax Canada.
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Credit Score Monitoring: Monitoring your credit score is emphasized as a proactive measure to stay informed about your credit health. Services like Borrowell offer free credit monitoring, allowing individuals to track changes in their credit scores over time.
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Bank Offerings: Some banks in Canada, including Scotiabank, RBC, and CIBC, offer free credit score access to their customers through online portals or mobile apps. These services typically update credit information monthly, providing customers with up-to-date insights into their credit standing.
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Credit Score Importance: The article underscores the importance of knowing one's credit score and credit history. Maintaining a good credit score increases the likelihood of approval for credit cards and loans at favorable interest rates.
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Credit Report Requests: Individuals have the right to request a free credit report annually from each of the major credit bureaus, Equifax and TransUnion. While the credit report does not include the credit score, it contains essential information used to calculate the score.
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Credit Score Correction: Monitoring credit reports allows individuals to identify and rectify errors promptly. Addressing inaccuracies or discrepancies in credit reports can positively impact credit scores and financial opportunities.
Understanding these concepts empowers individuals to make informed decisions about credit management and financial planning. By staying vigilant about their credit health and utilizing available resources for free credit score access and monitoring, individuals can proactively manage their financial well-being and optimize their creditworthiness.
