Knowing your score is important for access to credit and loans
Do you know how to check your credit score?
Knowing your score is crucial if you plan to buy a house, a car, or even apply for a credit card or a short-term loan.
Your credit score is a number between 300 and 900 that helps lenders determine your creditworthiness. A high score shows a potential lender that you would be a low-risk borrower and unlikely to default on your loan.
One of the advantages of having a higher score is access to better loan terms, including low-interest rate offers.
A credit score from 740 to 799 is above average, while those at 800 and over are considered excellent. Generally, credit lenders view those with credit scores of 670 and above as lower-risk borrowers.
You can check your credit score at a credit bureau, an agency that collects your credit information from banks and other financial institutions that considers your current access to credit and bill payment history.
In Canada, specifically, the two primary credit bureaus are Equifax and TransUnion.
The process for accessing your credit score from both bureaus is similar. You need to sign up and pay for instant online access. Both credit agencies work on a subscription model, or you can pay a one-time fee to access your report.
Once a year, you’re eligible for a free detailed credit report through the mail, but it won’t include your score.
There are also options to access your credit score for free in Canada.
Some banks offer free credit checks to their customers through their online banking platforms. Not all banks do, but examples of popular banks in Canada that offer free credit scores to their customers include Scotiabank, CIBC and RBC.
There is also an online service called Credit Karma that lets you sign up for a free account to monitor your credit score.
Even if you have a poor credit score, you can still access an instant online payday loan. Visit icash.ca to get started.