Canadians, credit scores and credit reports
We recently discussed how to maintain a good credit score and discovered why your credit score might vary from website to website. We all know the importance of credit scores, and you must monitor this three-digit number to help shape your financial future. Your credit score is calculated from your credit reports and reflects your financial situation, ranging from 300 to 900. And the higher the credit score, the better.
Many Canadians are often left wondering how they go about monitoring their credit score or how to check their credit score for free. In a study recently conducted by Loans Canada, it was discovered that many respondents were unsure of the implications around their personal loans, credit cards and debt. They discovered that 68 percent of surveyed use their credit cards regularly. Also, those surveyed had at least one credit card maxed out. With a high volume of Canadians using credit cards often, it’s clear that learning to monitor your score should be a priority. But how do you control your credit score? And what should you do to check your credit reports and score for free?
What is a good credit score in Canada?
Your credit score is a three-digit number that forms from your credit reports, which represents your “creditworthiness.” It ranges from 300 to 900, with 300 being poor and 900 being excellent. According to TransUnion, the average credit score in Canada is 650, which is considered a “fair” credit score. However, 20 percent of Canadians have a bad credit score of 600 or less. You can find out more about your credit score here.
Why is it important to check your credit score?
Your credit score reflects your creditworthiness. It’s generally the first thing lenders see when looking to approve you for a personal loan or other financial products. It represents how reliable you are at paying back your debt. And more importantly, if you’re a risk they’re willing to take on. Even if your credit score may represent a time when you weren’t as financially responsible, there’s no way to plead your case if your credit score is poor. So, to ensure you’re not missing out on loan approval, reasonable interest rates, a cellphone plan and more, you must make sure to check your credit reports, credit score and search for ways to boost your score to achieve more credit points.
Can I check my credit score for free in Canada?
Before you begin tracking your credit score, it’s essential to do your research. In Canada, there are lots of websites available that offer you allow you to perform a free credit score check. Some sites even help guide you with personalized recommendations with exact steps for you to take to improve your credit score. Whereas you can check your credit score with the major credit bureaus Equifax and TransUnion, there are other ways to get your free credit score too. Check out these five websites you can use to check and improve your credit score:
MyMarble Premium
MyMarble Premium provides you with access to Score-Up, our financial technology solution that will help you increase your credit score, through Point Deduction Technology©. Our leading proprietary technology allows you to work towards your desired credit score, within your budget, by allowing you to create a target credit score based on your financial plans and credit history.
By utilizing our Point Deduction Technology©, alongside the point and budget simulators, our software analyzes your TransUnion credit report to create a fast and clear path to build your credit score. Likewise, you can follow our monthly recommendations to make a positive impact on your credit score, giving you confidence for future financial events, all within your budget. In addition, Score-Up provides you with access to your credit report and allows you to track for errors and omissions.
Key Features: Credit Monitoring & Alerts, Point Deduction Technology, Error & Omissions Tracking, Points Simulator, Budget Simulator, Credit Score Check, Personalized Credit Improvement Recommendations Find out how they work here.
Price: $29.99 per month.
Borrowell
Borrowell provides you with your credit score for free, alongside their Credit Coach, Molly, who shares personalized tips that may help you understand your credit. They also provide you with recommendations that analyze your unique credit profile to make personalized financial product recommendations, which include loans, mortgages and more.
Key Features: Credit Score & Monitoring
Price: Free credit score, Borrowell Boost $4.99 +tax per month
Credit Karma
Credit Karma provides you with your free credit score and report, with the option to update every single week. Furthermore, Credit Karma also provides you with financial education tools to teach you about your score.
Key Features: Credit Score & Monitoring
Price: Free soft-pull credit report.
Equifax
Equifax is one of the major credit bureaus in Canada, which many credit score sites use to source credit reports. Equifax credit bureau allows you to access your credit report and find out your credit score, alongside providing you with educational and support tools to comprehend your credit score.
Key Features: Credit Score & Monitoring
Price: $19.95 per month
Transunion
Transunion is a credit bureau that acts in a similar way to Equifax. It provides you with unlimited access to your credit score and credit report. A membership with Transunion will give you access to many features such as alerts to any significant changes to your report, and personalized credit and debt analysis, allowing you to make smarter credit moves.
Key Features: Credit Score, Monitoring & Alerts, Credit & Debt Analysis
Price: $19.95 per month
Credit Verify
Credit Verify provides you with your credit score and credit report, alongside error monitoring and corrections, disputes and daily credit monitoring to ensure your report is always accurate and correct.
Key Features: Credit Score, Monitoring, Error & Corrections
Price: $29.95 per month.
Marbles Financial empowers Canadians to achieve their financial goals with MyMarble, Canada’s best virtual financial fitness trainer. Got a financial goal? MyMarble will help you reach it by providing you with personalized recommendations on how to improve your credit, better your budget and eliminate debt slowly.
