How to get your credit score for free in Canada
Your credit score can have a big impact on your financial future. Whether it’s buying a house, renting an apartment or landing your dream job. Borrowell helps people make great decisions about credit. With its free credit score and report monitoring, automated credit coaching tools and AI-driven financial product recommendations, Borrowell empowers consumers to improve their financial well-being and be the hero of their credit.
Does checking my credit score impact my score?
Soft credit inquiries, when you check your score yourself (like when you check your credit score with Borrowell!) do not show on your credit report and don’t affect your score. Hard credit inquiries, done by lenders or banks, are a formal credit inquiry and will slightly negatively affect your score.
Do I have a good credit score?
Your credit score ranges between 300-900 (depending on the scoring model – Borrowell uses the Equifax Risk Score 2.0. The average credit score in Canada, according to Equifax, is 749. Here’s a breakdown of Borrowell’s credit score ranges:
- 741 or more: You have an excellent credit score! You can consider yourself a credit all-star.
- 713 to 740: You have a good credit score. You should expect to receive very good interest rate offerings and a variety of credit products.
- 660 to 712: This is considered fair or average to lenders. But once you get to 660, you’re entering into average credit score territory.
- 575 to 659: This is a below average credit score. Consider working on improving your credit score.
- 300 to 574: Your credit score is poor and needs improvement.
This number is determined by a credit bureau, like Equifax, and is used to determine your creditworthiness.
How do I improve my credit score?
It can be very frustrating when you don’t know why your credit score is what it is. Here are two important services that will help:
Credit score comparison. This allows you to see how your own score falls with the rest of Canada.
Credit updates. This notification feature offers important credit updates like new credit inquiry alters and missed payment warnings, as well as messages to inform you when you’re making good financial decisions.
Helpful tips. The Credit Coach provides helpful tips to improve your credit score and product recommendations to address areas of improvement.
Having a good credit score is crucial when applying for loans, mortgages, or credit cards in Canada. A high credit score indicates that you are financially responsible and can pay back your debts on time. Here are some tips on how to improve your credit score in Canada:
- Use less than 35% of your available credit: Borrowing more than the authorized limit on a credit card can lower your credit score. It’s recommended to use less than 35% of your available credit. For example, if you have a credit card with a $5,000 limit, try to keep your borrowing amount under $1,750.
- Repay your debts: Repaying your debts on time can positively impact your credit score. Consider adding debt repayment as part of your budget and work to minimize what you owe.
- Check for errors on your credit report: Errors on your credit report can negatively affect your credit score. It’s important to check for and fix any errors on your credit report. Additionally, monitoring your credit report can help protect you from fraud. Note that information on your credit report typically stays on it for several years, so it’s important to ensure that the information is accurate.
By following these tips, you can improve your credit score in Canada and increase your chances of getting approved for credit in the future. Get your free credit score
