Checking Your Credit Score in Canada
Everyone has a credit score.
If you’re unsure how to check your credit score, or you haven’t looked at your rating for a long time, this guide has all the information you need.
What is a credit score?
A credit score is a rating, which is used by lenders and financial organizations to calculate the level of risk an individual represents.
The higher your credit score, the lower the risk.
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A low credit rating can make it difficult to borrow money.
There are several factors that influence your credit score, including:
- Payment history: do you make payments on time, or have you missed or failed to pay bills in the past?
- Debt: are you in debt? How much debt are you carrying?
- Credit history: are you a credit user? How long have you been a credit user? If you’ve borrowed money and you use a credit card and you hit repayment targets, this should improve your credit score.
- Credit inquiries: every time you apply for a financial product, for example, a loan or a credit card, your score will be temporarily affected. A large number of new inquiries in a short period of time may be a red flag for some lenders.
How to check your credit score in Canada
If you’re looking to check your credit score in Canada, there are several options available.
You can carry out a check online, you can make a phone call or you can organize a face to face meeting.
Most people use online services to find out their credit rating.
In Canada, there are two credit bureaus: Equifax and TransUnion.
It is advisable to check your credit score with both credit bureaus, as there may be slight differences.
The simplest and quickest way to gather information about your credit score is to fill in the online application forms that are available through the TransUnion and Equifax websites.
If you’re in a hurry, you can pay for an express service, which provides instant results.
What is the average credit score in Canada?
It is crucial to understand the context in which credit scores are given.
The credit rating system uses a range of numbers, with higher figures denoting a better credit score than lower numbers.
According to TransUnion, the average Canadian credit score is approximately 650 on a scale that runs from 300 to 900.
Most people who have a credit score of over 750 are in the over 65 demographic.
What can I do if my credit score is low?
If your credit score is low, don’t panic.
It is possible to improve your rating, especially if you have outstanding debts and you’re keen to start managing your money more effectively.
Paying bills and mortgage repayments on time, repaying loans and clearing credit card debt and using your bank account frequently can all help to increase the number.
If you are struggling with debt, and you’re worried about your credit score, we are here to help.
Don’t hesitate to get in touch.
Summary
A credit score is a rating used by financial organizations to determine how great a risk an individual poses.
A high score is preferable, but if your credit rating is below average, there are ways of increasing your score.
