Where to find your credit score in Canada

Do you need a loan, but won’t you want to know your credit score first?

Credit score
Credit score

Whether you need a loan or you simply want to keep clean credit, then you may need to know your credit score.

What many people in Canada don’t know is that everyone that has ever borrowed money to buy a car or for other personal things has a credit file. This means that millions of Canadians have credit files, but how many people know what is inside the credit file?

Many times, there are mistakes in people’s credit files. Can you remember being denied approval for a loan and you could not figure out why?

Well, this is where checking your credit report comes in. Carrying out a simple check on your credit report will help you to find some errors and how you fix them.

Before we talk about how you can find your credit score in Canada, let us look at what a credit file is.

What is a Credit Report?

Credit scores
Credit scores

A credit report is a detailed file where information about your borrowings and repayments habits are stored and maintained. This information is usually stored and maintained by the credit bureau stores.

A credit report contains information such as:

  • Personal identification
  • Your credit history
  • Public records
  • A list of parties you have authorized to access this information

A credit report is set up to establish a standardized and objective credit rating for you.

What is a credit rating?

Credit rating
Credit rating

A credit rating is an evaluation of how dependable you are in repaying your debts. Many credit-reporting agencies will give you a rating on a scale of 1 to 9.

For example, a rating of “1” may mean that you pay your bills within 30 days of the due date, while a rating of “9” may mean that you never pay your bills at all.

An “R” rating is also included in your credit score. This rating is assigned by lenders based on your past history of borrowing and paying off debts (this can range from 1 through 9.

This means that an R1 rating is the best while an R9 rating is the worst. Do you know that your credit rating is not established by the government?

It is established by you. That is why if you don’t pay your loans on time, you may be reported to a credit bureau. Your credit rating can be your most valuable asset, but when it is not properly managing it can impact your finance.

What is a credit score?

credit score for free
credit score for free

A credit score is a figure (numeric figure) calculated from the information in your credit report. This figure shows the risk that you represent to a lender compared to other customers at a particular point in time.

The higher your credit score, the lower the risk for the lender. It will be easier for you to get approval for a loan with a higher credit score.

Your credit score does not increase or decrease on its own. There are factors that can increase or reduce your credit score:

Factors that impact your credit score

  • Payment history: This is one of the most important and it makes up to 35% of your credit score.
  • The amount of credit you owe: Owing too much or owing too small credit can negatively impact your credit score.
  • Length of credit history: The longer your credit history, the higher the chances of a good credit score.
  • Types of credit used: The more varied your credit, the better the score.
  • New credit – your general credit score will change every time you apply for and get a new credit

To how to check your credit score

Checking your credit score is simple. You can check your credit score with Canada’s credit bureau to receive a copy of your report by mail without paying a dime.

If you decide to view your credit report online, then you may need to pay a fee. You can contact one of these credit bureaus for more information.

How to get a free credit report from TransUnion Canada or Equifax Canada

Like we said earlier, you can get a copy of your credit report from both Equifax Canada and TransUnion. These two credit bureaus have different information about how you have used your credit in the past.

It is good you know that requesting your credit report has no effect on your credit score.

For example, Equifax Canada refers to your credit report as “credit file disclosure” while TransUnion Canada refers to your credit report as “consumer disclosure”.

If you choose to order by mail or fax

  • You have to make your request in writing using the forms provided by Equifax and TransUnion
  • You need to provide copies of two pieces of acceptable identification, such as a driver’s licence or passport (anyone will do).
  • Once you go through the process, you will receive your credit report by mail.

If you choose to order by telephone

  • Call any of the credit bureau and follow the instructions/prompt.

Equifax Canada

Tel: 1-800-465-7166

TransUnion Canada

Tel: 1-800-663-9980 (except Quebec)

Tel: 1-877-713-3393 (Quebec residents)

Order by telephone process

If you decide to order your credit report by telephone, then you would have to follow this process:

  • Confirm your identity by answering a stream of personal and financial questions.
  • You may also need to provide your Social Insurance Number and/or a credit card number to confirm your identity (they need to be sure you are requesting your report).
  • You must receive your credit report by mail

If you want to get your credit report online

If you prefer to get your credit report online, then you may need to pay a fee to access it. TransUnion allows you to order your credit report online once ina month for free

Why you should get your credit scores?

It is good you know your credit score because that is what will determine if they will give you the loan. A lender will use your credit score to determine if they will borrow you the money and how much interest they will charge you to borrow it.

Your credit score generally shows the risk that you represent to a lender compared to other consumers. It is good you know your credit score before a major purchase because it will help you negotiate lower interest rates.

What is credit monitoring?

free credit monitoring
free credit monitoring

Maybe you have come across credit monitoring, and you have been wondering what it means. Well, many of Canada’s credit bureaus and other financial institutions offer credit monitoring services.

These services provide you with notification after certain updates to your credit file, such as credit inquiry.

You can consider using this service if you want to prevent the situation of a data breach. Using this service can help you see if someone is trying to apply for credit in your name. using this service usually comes at a cost.

Using a credit service may not be the best option for you

checking your credit scores for free
checking your credit scores for free

Yes, we have talked about a credit monitoring service, but how well does this service work for you? The truth is that many credit monitoring service provides that promise to help get a good credit score.

In reality, there is actually little or nothing a credit monitoring service can do to boost your credit score. The best they can do is to help you fix inaccuracies in your credit file.

Like we have said earlier, you can fix inaccuracies on your credit file for free.

How often you should check your credit report

how often you should check your credit scores
how often you should check your credit scores

It is wise for you to check your credit report from time to time from one of the bureaus (TransUnion or Equifax). When you request your credit report from one bureau, then you can wait for six months before you order from the other bureau.

For example, if you check with Equifax, you can wait for six months, then check with TransUnion. Spacing out your request will help you detect errors quickly.

We are sure that all the information that we have given below will be useful to you. In case you need a fast and easy loan with flexible payments, then Dashloans is your plug.

Try it out and let us know what you think.

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