How to Check Your Credit Score in Canada

Your credit score is a crucial part of your financial profile, impacting everything from loan approvals to interest rates and even rental applications. Knowing how to check your credit score in Canada empowers you to make informed decisions, understand your credit health, and take steps to improve it if necessary. In this guide, we’ll explore the ins and outs of credit scores in Canada—what they mean, why they matter, and most importantly, how to check your score for free or at a minimal cost. With this information, you’ll be able to monitor your credit with confidence and control.

Why Your Credit Score Matters in Canada

Your credit score is a three-digit number that tells lenders how reliable you are when it comes to handling credit. In Canada, credit scores generally range from 300 to 900, with higher scores indicating stronger creditworthiness. Here’s why this score holds such importance:

Loan Approvals: Your credit score affects your eligibility for various types of credit, including personal loans, car loans, and mortgages.
Interest Rates: Generally, the higher your credit score, the lower the interest rates you’ll be offered, which can save you thousands over time.
Housing Opportunities: Landlords and property management companies often check credit scores to determine if you’re a reliable tenant.
Employment: Some employers may check credit as part of the hiring process, especially in financial or high-responsibility roles.

By understanding and actively monitoring your score, you can better navigate these financial situations and improve your options.

How Is Your Credit Score Calculated in Canada?

To understand what affects your score, let’s look at the key components used by Canadian credit bureaus—Equifax and TransUnion—to calculate it. While the exact formula is proprietary, most scores are based on these five primary factors:

Payment History (35%): Paying bills on time has the most significant impact on your score. Late payments, collections, and bankruptcies harm it significantly.
Credit Utilization (30%): This refers to how much of your available credit you're using. Experts recommend using no more than 30% of your credit limit.
Length of Credit History (15%): The longer your credit history, the better, as it gives lenders a fuller picture of your financial behavior.
New Credit Inquiries (10%): Applying for multiple credit products in a short time can lower your score, as it may suggest financial instability.
Credit Mix (10%): A balanced credit portfolio, including both revolving (credit cards) and installment credit (loans), positively affects your score.

These factors give lenders a quick summary of your credit reliability, guiding their decision to extend credit or adjust your interest rate.

How to Check Your Credit Score in Canada for Free

In Canada, you have several options for checking your credit score without paying a fee. Each option has its benefits, and choosing the right one depends on how you want to access your score and whether you need additional features.

Use Free Online Platforms

In recent years, third-party companies have partnered with Canadian credit bureaus to offer free credit score access. Here are some of the most popular options:

Borrowell: Borrowell provides a free Equifax credit score and updates it monthly. The platform also offers credit monitoring, financial tips, and personalized product recommendations based on your credit profile.
Credit Karma: With Credit Karma, you’ll receive your TransUnion credit score along with updates every seven days. Credit Karma also includes educational resources to help you understand the factors affecting your score and provides product recommendations.
Mogo: Mogo offers a free monthly credit score check based on Equifax data. Mogo also has a range of financial tools, such as identity fraud protection and financial education resources.

Using these platforms, you can monitor your score regularly without impacting it, as these checks are considered soft inquiries that don’t affect your credit.

Check with Your Bank or Credit Card Provider

Many banks and credit card companies in Canada offer free credit score access to their clients. This feature is typically integrated into the bank’s app or online banking portal, making it convenient to check your score alongside your other financial information. Some banks that provide this service include:

RBC (Royal Bank of Canada)
Scotiabank
BMO (Bank of Montreal)
CIBC (Canadian Imperial Bank of Commerce)

These scores are often sourced from Equifax or TransUnion, and although they may not provide detailed credit reports, they’re ideal for keeping an eye on your score without additional effort.

Accessing Credit Reports Directly from Credit Bureaus

While the platforms above offer your credit score, you can also request your complete credit report from Equifax and TransUnion. Each Canadian is entitled to one free credit report from each bureau annually, though this report doesn’t include your actual credit score.

Equifax Canada: You can request your free credit report by mail, phone, or through an online application. Equifax provides the option to view your report instantly online for a fee if you prefer not to wait.
TransUnion Canada: TransUnion also offers free credit report requests via mail or phone, but if you want a faster solution, their online access requires a small fee.

Getting a full report from each bureau at least once a year is a good practice, as it allows you to verify that the information on file is accurate and detect any unusual activity.

How Often Should You Check Your Credit Score?

While it's tempting to monitor your credit score frequently, it’s generally enough to check it every three to six months for most people. If you’re actively working to improve your score—perhaps paying down debt or correcting errors—more frequent checks might make sense.

However, checking your credit score more than once a month isn’t likely to yield significant changes, as most credit bureaus update scores on a monthly basis. The key is consistency and ensuring any unexpected fluctuations are addressed promptly.

How to Interpret Your Credit Score in Canada

Understanding what your credit score means in practical terms can help you know where you stand. Here’s a general breakdown of credit score ranges and what they signify in Canada:

Excellent (760-900): A strong score that gives you access to the best interest rates and loan terms.
Very Good (725-759): You’ll qualify for most credit products with favorable rates, though not always the lowest available.
Good (660-724): You’re likely to get approved for a wide range of credit products, but rates may vary.
Fair (560-659): Lenders may still work with you, but you may face higher interest rates or limited options.
Poor (300-559): This score range often indicates difficulty in obtaining credit without high rates or a cosigner.

By understanding these ranges, you can set realistic goals and make the necessary adjustments to improve your credit standing if needed.

Steps to Improve Your Credit Score in Canada

If you find that your credit score is lower than you’d like, don’t worry—there are several strategies to help you improve it over time. Here are some proven steps:

Make Payments on Time

This is one of the most important factors in your credit score. Set up automatic payments or calendar reminders to avoid missing due dates.

Keep Credit Utilization Low

Using more than 30% of your credit limit can lower your score. Paying down balances to maintain a lower utilization ratio will positively impact your score over time.

Avoid Multiple Hard Inquiries

Every time you apply for credit, a hard inquiry appears on your report, which can temporarily reduce your score. Limit applications to only when necessary.

Correct Errors on Your Credit Report

Check your credit report for errors that may be dragging down your score. If you find inaccuracies, reach out to the credit bureau to have them corrected. Correcting errors can provide an immediate boost to your score.

Diversify Your Credit Mix

Lenders like to see that you can handle different types of credit, such as credit cards, loans, and lines of credit. A balanced credit portfolio can improve your score slightly over time.

Common Credit Score Myths in Canada

When it comes to credit scores, misinformation can lead to confusion. Here are some common myths to be aware of:

Checking your credit score lowers it: False. Checking your score through a soft inquiry (like those from online platforms or banks) does not affect your credit.
Closing old credit cards improves your score: In reality, closing old accounts can reduce your overall credit history, which can lower your score. It’s often better to keep old accounts open with zero balances.
A high income guarantees a high credit score: Your income doesn’t directly impact your credit score. While lenders consider income when evaluating loan applications, it’s your credit behavior that determines the score.

Final Thoughts on Checking and Maintaining Your Credit Score in Canada

Checking your credit score is more than just a number; it’s a reflection of your financial habits and reliability as a borrower. By regularly monitoring your score, using the tools and resources available in Canada, and understanding what affects your score, you can stay informed and take proactive steps to improve your financial health. Whether you're aiming to qualify for a mortgage, lower your interest rates, or simply stay informed, knowing your credit score gives you the power to navigate Canada's financial landscape with confidence.