Keeping track of your credit score is a habit you’re going to want to master if you’re looking to rebuild your credit. Like any other goal, tracking your success/pitfalls will allow you to get one step closer to your achievement. In this blog post, we’ll go over how you can check your credit score for free in Canada without damaging your credit.
How Do You Get A Free Credit Report in Canada?
Obtaining a free credit report is very simple and not as hard as you think. There are a couple of companies in Canada that offer free credit reports that don’t affect your score at all. Borrowell and CreditKarma are commonly used in Canada and are two companies that we recommend when looking to check your credit score for free.
With both companies, all you have to do is fill out a quick online form that will provide them with some information about yourself, so they can verify your identity and provide you with a free credit report. Keep in mind that there are two major credit bureaus in Canada (Equifax and TransUnion). CreditKarma uses TransUnion and Borrowell uses Equifax to pull credit reports. If you really want to pay attention to your credit score from both credit bureaus in Canada, we recommend monitoring your credit score on both platforms (CreditKarma & Borrowell).
Why Should You Check Your Credit Score For Free in Canada?
In our previously blog post, we explained the importance of setting financial goals and why monitoring your credit score is important. To sum it up, taking a quantitative approach when monitoring your credit score is something you can rely on to make sure you’re on the right track. Without adding your credit score into the equation, it’s very difficult to see how you’re progressing when rebuilding your credit. It doesn’t get any better than using data to analyze your current credit situation!
If you’re still wondering why you should do such a thing then keep reading. Believe it or not, your credit score plays a pivotal role in your life. A variety of businesses check your credit report to make decisions about you, banks check your credit before approving you for a credit card, auto loan, or even a mortgage. Landlords review your credit score to decide whether or not to rent to you, and even some employers check credit reports during their application process. These are just a few of many reasons why you should monitor your credit score fore free in Canada.
What Should You Look For When Checking Your Credit Score?
When checking your credit score for free in Canada, the most significant factor to look for is growth. If you see that your credit score has risen over time, then keep up the good work! If you see that your credit score is inconsistent over a period of time, you may want to re-evaluate your financial situation and adjust accordingly. Inconsistency in your credit score is usually a sign of bad spending habits but sometimes it could also be for legitimate reasons, like applying/getting approved for a car loan. Either way, checking and monitoring your credit score can benefit you in the long run, so make sure you’re doing it consistently.