Building your credit is one of the most important aspects of personal finance. The better your credit score is, the easier it will be to get a loan, mortgage, financing, and good credit cards.
According to Borrowell, the average credit score in Canada is 672, which is considered a good credit score.
The first step to building your credit is to get your credit scores and start monitoring your credit report.
This will help you take care of items hurting your credit and allow you to build on items that are helping your credit. Below, I’ll show where to get the best free credit score reports in Canada.
- Free Equifax credit score
- Free credit coaching
- Personalized loan offers
- 100% free to use
- Free credit scores and reports for 90 days
- Personalized loan offers
- Pre-approval for free Mogo Prepaid Visa card
- Free Equifax and TransUnion scores
- Monitor your credit progress
- Personalized loan and credit card offers
- Free credit education resources
The Major Credit Bureaus in Canada
Credit bureaus are huge data collection agencies that build a unique profile for each eligible Canadian with a social insurance number. In Canada, there are two major credit bureaus, which are:
- TransUnion
- Equifax
Both TransUnion and Equifax began operating in Canada in 1989 and use the same Vantage 3.0 scoring model.
Credit bureaus are informed by your creditors, banks, and other financial services that you may be working with. A third bureau, Dun & Bradstreet, is solely used for commercial business credit reporting.
Every time that you make a credit card payment on time, the credit card company notifies TransUnion and Equifax, informing them of your timely payment. This can improve your score.
The same also applies to missed payments, which can have a derogatory effect on your credit score in Canada.
10 Best Free Credit Score Report Sites Canada
Are you ready to check your credit score? If you bank with one of the big-five banks, you should be able to get your score online by requesting it from your online banking platform.
However, there are also several third-party credit monitoring companies that help you get pre-approved for various financial products.
Here are the best sites to check your credit score in Canada.
1. Borrowell
- Get Your Score: website
Borrowell was founded in 2016 and quickly became one of the top sites for Canadians to get a free report. This third-party credit monitoring service uses data obtained from Equifax to show users their scores and generates an easy-to-understand credit profile, so they can see exactly what’s helping and hurting their score.
Signing up for Borrowell is 100% free and only takes a few minutes. To create your account, you’ll be asked a few simple questions to verify your identity so that the company can generate an accurate report online.
In addition to showing you your free credit report, the company uses your credit profile to connect you with financial products, such as:
- Rewards credit cards
- Low-interest personal loans
- Mortgage lenders
Your profile will be updated monthly as Equifax updates your score and your credit accounts. You’ll also receive personalized tips on how to get an improved credit score, which is great if you’re just starting to build credit history.
Another great feature that I like about Borrowell is that they offer free identity fraud protection by closely monitoring your credit and working hand-in-hand with law enforcement agencies when problems arise. With identity theft on the rise, this is a major plus.
2. Mogo
- Get Your Score: website
Mogo was founded in 2003 and is a fintech company based out of Vancouver, British Columbia.
Mogo offers loans, mortgages, and credit cards. Once you create an account, you’ll be able to get your credit score for free and receive monthly updates as your score changes.
At this time, Mogo doesn’t offer free credit reports, though, so it’s only good for credit scores.
The only catch with Mogo is that the service is only free for 90 days. After this period, Mogo requires you to sign up for the Mogo Visa Platinum Prepaid Card.
While this prepaid card has decent ratings, I recommend comparing it to other prepaid credit cards before making a final decision.
3. Credit Karma
- Get Your Score: website
Credit Karma is one of the most popular free credit monitoring services in North America and operates in both the US and Canada.
After signing up (which only takes a few minutes), you’ll be able to view your credit scores from both Equifax and TransUnion.
This is incredibly helpful because it gives you a complete view of your financial situation.
In addition to showing you your credit score online, you’ll also be able to access your free credit reports from both of the major credit bureaus.
Each bureau may show slightly different items on your credit file, which allows you to find derogatory items that you may be able to challenge.
As far as credit education goes, Credit Karma offers lots of free resources and personalized tips for building your credit. This makes it a good choice for anybody trying to actively build their credit.
You can view all of your free credit scores, your free credit report, and even get paired with low-interest rates on personal loans and cards through Credit Karma’s easy-to-use smartphone app.
4. Equifax
- Get Your Score: website
Equifax is one of the major credit bureaus in Canada. You can get your free Equifax credit reports as well as your Equifax credit score by setting up your online access account.
The only disadvantage is that you won’t be able to view your TransUnion credit score or reports alongside your Equifax credit report. It’s a great way to check your credit score for free, though.
If you’re looking for a more comprehensive credit monitoring solution, you can also subscribe to Equifax Complete to receive daily credit reports, scores, and up to $1 million in identity theft insurance.
5. TransUnion
- Get Your Score: website
Unlike its competitor, Equifax, TransUnion does not offer free credit scores or a free credit report. However, all Canadians are entitled to receive a free copy of their consumer disclosure from TransUnion.
This is a copy of the credit report that other businesses and financial institutions can see when they check your credit history.
While TransUnion doesn’t offer a free credit score service like Equifax, Borrowell, or Credit Karma, consumers can subscribe to the company’s credit monitoring service for $24.95 per month to receive real-time updates about their TransUnion credit scores and credit report.
Once you sign up for TransUnion’s credit monitoring, you’ll receive alerts about credit changes, hard inquiries, and potential threats to your identity.
6. RBC – Royal Bank of Canada
- Get Your Score: website
Most of the large banks in Canada offer free credit scores to their customers. RBC is one of the largest banks in Canada, and allows all online banking customers to get their free credit score through the online banking portal.
To view your free credit score from RBC, login into your online banking and look for a box on the right-hand side of the screen labelled “My Services.” Highlight the box to access the drop-down menu and click “View Your Credit Score.”
Since RBC is partnered with TransUnion, you’ll only be able to view your Transunion credit scores. If you need your Equifax scores, you’ll need to obtain those directly from Equifax (see above).
7. Scotiabank – Bank of Nova Scotia
- Get Your Score: website
Like RBC, Scotiabank has partnered with TransUnion so that all banking customers can get their free credit score online. To access your score, you’ll need to log into the online banking portal.
If it’s your first time checking your credit score on the platform, you’ll need to accept Scotiabank and TransUnion’s CreditView dashboard agreement. Once you accept the terms, you’ll be able to get your credit score for free.
8. Desjardins
- Get Your Score: website
Desjardins is a large company that offers a variety of personal and business financial products, such as loans, credit cards, retirement investment accounts, and more.
As a member of Desjardins, you’ll be able to view your TransUnion credit score for free through your online account access portal.
One of the neat features of Desjardins and TransUnion’s CreditView dashboard is that you’ll be able to use the Score Simulator tool.
This tool uses algorithmic data to estimate your projected future credit score based on actions, such as:
- Making your payments on time for 12 months
- Refinancing your home
- Applying for a new credit card
- Missing a credit card payment
This is a useful tool to use before making major decisions that could impact your credit score.
9. BMO – Bank of Montreal
- Get Your Score: website
As a BMO online banking customer, you can access your TransUnion score by logging into your online banking portal. From here, navigate to “Profile and Settings.” Then select “My Credit Score” to open the TransUnion CreditView application and view your credit report as well as your score.
If you have the BMO online banking mobile app, you can access your score and reports here as well.
10. CIBC – Canadian Imperial Bank of Commerce
- Get Your Score: website
Unlike the other major banks, which are partnered with TransUnion, CIBC has its own scoring model that’s based on the Equifax algorithm. Once you sign up for CIBC’s online banking, you’ll be able to view your Equifax score.
The only drawback is that CIBC only updates your score once every three months, which means that you won’t get the most up-to-date data.
What Is Your Credit Score & Why Is It Important?
Many of the young people I’ve met still aren’t quite sure how credit reporting works and don’t have a solid idea of why it’s such an important factor for their financial health.
In short, your credit score determines how financially trustworthy you are.
Imagine if a complete stranger came up to you and asked you for a $100 personal loan.
Now, you may be willing to give the individual the loan. First, though, you’ll probably want to know a bit more about them and why they need the money. You may ask them questions like:
- What do you need the money for?
- Are you employed (able to pay the money back)?
- Do you have a good payment history?
Your credit score provides creditors and financial institutions with all of the data that they need to determine your eligibility for personal loans, financing, credit cards, housing rentals, and mortgages.
Before credit reporting, getting a line of credit could be very difficult. Now, any bank can determine your eligibility for a credit line by checking your credit score and asking a few simple questions.
Can Checking My Credit For Free Impact My Score?
The good news is that checking your credit score for free does NOT impact your score. It simply generates a report, allowing you to see accurate information about your score and report.
This is different from hard inquiries made by lenders and financial institutions. These can negatively affect your credit and can stay on your credit for up to two years.
What Is A Good Credit Score?
Both Equifax and TransUnion base their scores off of the Vantage 3.0 scoring model. With this model, consumer scores can range between 300 and 850. A good credit score is generally considered to be anything over 660.
Here’s a quick breakdown of how your Vantage 3.0 credit score is used to determine your overall credit rating:
- 300 – 499: Very poor
- 500 – 600: Poor
- 601 – 660: Fair
- 661 – 780: Good
- 781 – 850: Excellent
The better your score is, the more trustworthy you appear to lenders. This could improve your chances of receiving:
- Lower interest rates on loans and financing
- Higher-limit credit cards
- Lower down payments on financed items
What Is The Most Accurate Credit Score in Canada?
Both TransUnion and Equifax use the latest Vantage 3.0 scoring model. This model was released in 2013 and offers greater consistency to fit today’s fast-paced society. It also provides scores for those with limited credit history.
That being said, both Equifax and TransUnion offer incredibly accurate reporting.
That being said, your credit report from each bureau could look different. This isn’t due to the credit bureau itself.
Rather it’s based on the accuracy of the information that your creditors and lenders report to the bureaus. For instance, some lenders may only report to one bureau, while others may report to both bureaus.
Credit Scores vs. Credit Report: What’s The Difference
Don’t confuse your credit score with your credit report. Here’s an easy way to tell the two terms apart:
- Credit Score: A single score between 300 and 850, that’s based on all of the data present in your credit profile
- Credit Report: A full list of every credit card, loan, mortgage, and other items on your credit profile
Your credit report typically includes information, such as:
- Revolving credit card balances
- All loan payments (late payments and on-time payments)
- Auto loans and payments
- Mortgage balance
- Closed accounts
- Open accounts (and how long you’ve had them for)
- Hard credit check inquiries
- Student loans
- Total debt
What Two Places In Canada Can You Get A Free Credit Report?
There are a bunch of places that allow you to see your credit score for free. However, if you want a free report, then I recommend obtaining them from Equifax or TransUnion.
If you want the most complete picture of your credit, I recommend requesting your report from both bureaus.
Free Equifax Credit Report
To request your free Equifax consumer credit report, you can use one of the following methods:
- Online: Equifax online access portal
- Mail: Fill out this form and mail to Equifax National Consumer Relations | Box 190, Station Jean-Talon | Montreal, Quebec, Canada, H1S 2Z2
Free TransUnion Credit Report
To request your free TransUnion consumer credit report, use one of the following methods:
- Online: TransUnion OCS portal
- Mail: Fill out this form and mail to TransUnion Consumer Relations Department
3115 Harvester Road, Suite 201 Burlington ON L7N 3N8
Should I Consider Paid Credit Score Services?
Everybody should request a copy of their consumer credit reports and get their free credit score in Canada. However, paid credit monitoring services offer some excellent perks, such as:
- Real-time credit score updates
- Immediate notifications when your credit score or report changes
- Identity theft protection
If you’re actively building your credit and working on your personal finances, a paid credit monitoring service can give you the edge you need to make the right decisions.
How Often Should I Check My Credit Scores?
I often check my credit scores daily. There are no set rules for how often you should check your scores.
Just remember that credit is a long-term game. It’s completely normal for your credit score to fluctuate on a weekly or monthly basis. It may go up or down, depending on factors like:
- Your revolving credit card balance
- Recently closed accounts
- Credit or financing applications
- Refinancing your car
- … and more
The important thing is that you use the data to make informed decisions that will help your credit score in the long term.
Final Thoughts
If you want to improve your credit profile and appear more favourable to lenders, then you’ll need to start building good credit history and work on improving your score.
It all starts by requesting your free credit score report in Canada. Once you have this information, you’ll be able to start making positive changes.
If your credit isn’t the best and you need to find a loan, then keep reading to discover my list of the best guaranteed approval loans for bad credit in Canada next!
