How to Check Your Credit Score - Free & Safe Methods
Posted on December 5, 2024
Your credit score plays a crucial role in your financial life, influencing everything from loan approvals to interest rates. But did you know that checking your credit score can sometimes affect it?
Fortunately, in Canada, there’s a way to keep tabs on your credit score without impacting it negatively—through what’s called a "soft check."
In this blog, we’ll walk you through the differences between soft and hard inquiries and where you can check your credit score for free.
Understanding Soft vs. Hard Inquiries
Not all credit inquiries are created equally. Here’s a breakdown:
Soft Inquiry (No Impact)
This occurs when you check your own credit score or when companies perform checks for purposes unrelated to lending (e.g., background checks or pre-approval offers). Soft inquiries don’t affect your credit score at all.
Hard Inquiry (May Impact)
A hard inquiry happens when a lender checks your credit report as part of a loan or credit application process. This can slightly lower your credit score, especially if there are multiple inquiries in a short time frame.
Where Can You Check Your Credit Score Without a Hit?
Here are some of the best places to check your credit score in Canada without it being considered a hard inquiry:
1. Credit Bureaus
Credit bureau plays a critical role in monitoring and managing your financial health by providing access to your credit score and report.
In Canada, there are two major credit bureaus where you can easily request your credit information without affecting your score. Below is a brief overview of each bureau and how you can access your details.
Equifax Canada
You can request your credit score and report from Equifax, and it will be considered a soft inquiry when you ask for it for personal use. Find more at: www.consumer.equifax.ca/personal/
TransUnion Canada
Similar to Equifax, you can request your credit score from TransUnion, which won’t negatively impact your credit. Visit: www.transunion.ca
2. Free Credit Score Providers
Several platforms in Canada offer free credit score services, allowing you to keep track of your financial standing without negatively impacting your credit. These financial institutions use soft inquiries, ensuring your score remains unaffected.
Below are some of the top options for checking your credit score for free.
Borrowell
Borrowell provides free access to your Equifax credit score, and it’s a soft check, meaning there’s no hit to your credit. Visit: www.borrowell.com
Credit Karma
Credit Karma uses TransUnion data and offers free credit scores and reports. It’s a soft inquiry that won’t hurt your credit. Visit: www.creditkarma.ca
Mogo
Mogo offers free monthly updates on your credit score using data from Equifax, with no impact on your score. Check it out at: www.mogo.ca
How Often Can You Check Your Credit Score?
The good news is you can check your credit score as often as you like through soft inquiries so that you can stay informed without any adverse impact on your credit score.
Annual Credit Report Access
In Canada, you’re also entitled to a free copy of your full credit report from both Equifax and TransUnion once per year. This provides a more detailed view of your credit/payment history.
Stay Informed, Stay Secure
Keeping track of your credit score is a smart financial habit. By using these services and checking your score through soft inquiries, you can manage your credit health without any risk of lowering your score.
Take Control of Your Credit and Car-Buying Journey
Credit score checking is crucial for maintaining good financial health, and now you know how to do it without causing any harm. Make use of the free tools available to Canadians and take control of your credit today.
At CarHub, we understand how important your credit score is when it comes to financing a vehicle. Whether you're checking your score for the first time or monitoring it regularly, our team is here to help you navigate the car-buying process with ease.
Explore our range of vehicles and financing options that fit your budget and credit profile, or contact us today to learn more about how we can assist you with both sales and services.