We know Credit score is very much beneficial nowadays to get the best credit card or best rates on loans, mortgages. And when we are shifting to a rented house or apartment, the owner of the house also checks our credit score to get the idea of our credit history and affordability.
Although checking credit scores used to be paid and tough for the average person because not everyone wants to pay for that. But don’t worry. We have mentioned the ways through which you can check credit score for free. Yes, you read that right. You’ll get a credit report free. There are various companies that provide a to check credit score free.
Before you get the answer to your question “How to Check Credit Score for free” we need to understand about Credit Score.
What is a Credit score?
A credit score basically shows the credit worthiness of someone. It is based on your number of accounts, credit history, total levels of debt, or any payment history. Credit Score helps the lenders to get the idea of your
potential while lending you the amount.
Generally, it’s a three-digit number and ranked in a manner:
- 760 – 900 EXCELLENT
- 725 – 759 VERY GOOD
- 660 – 724 GOOD
- 560 – 659 FAIRS
- 300 – 559 POOR
The higher score depicts the better potential of a borrower to lenders. A very good score can help you get the best rates on loans, mortgages, etc.
How to get free credit scores?
These are the companies that provide free credit scores:
#1 Borrowell
Borrowell - Check Credit Score for Free in Canada
Click Here to Read Borrowell Review
#2 Mogo
Check Your Credit Score for Free in Canada on MOGO
You can monitor your scores and learn the ways to improve them all together. Mogo app sends you daily money moves to control your spending and techniques to save and earn more money.
#3 Credit karma
Get Annual Free Credit Report By Credit Karma
How to apply for a free credit score?
The process is simple. You just need to login to the site and enter your personal details. Few questions may be asked just to make sure of your identity. Then you can submit the form.
This process is basically a soft inquiry that doesn’t affect your credit score anyway. It is recommended to check the scores from both Equifax and TransUnion because Sometimes the scores may vary.
Free Credit Report in Canada
Check credit score for free is an easy job in Canada. As we mentioned, a credit score reveals a lot about your credit history and affordability.
You can get your Equifax free credit report through Equifax for free., just by dialing them at 1-800-465-7166. Or, if you want a Transunion free credit report then you can get it through online portals. But it’s mostly preferred to use both methods just to be sure about the slightest differences.
How Credit score is calculated?
If you want to improve your credit score or know how it works. Then you must understand how it is calculated.
Basically, there are various factors that affect credit scores in Canada.
-
Payment history:(35%)
Your payment history plays a vital role in credit scores. Because any lenders first want to know your punctuality when it comes to paying your bills. If you pay your bills very late then it affects your credit scores badly.
-
Credit history: (15%)
It is advised to keep the old old credit accounts when you are closing the credit accounts. Because it can fetch you more points as longer the credit history, the better it is.
-
Amount owned: (30%)
This basically shows your credit utilization ratio, which How much ratio of credit limit you have been using from the amount of credit limit that is provided to you.
For example: if the credit limit is up to $10000 and your credit balance is up to $4000.Then you have attained 40% of your credit limit which is your credit utilization ratio.
It is recommended to keep it 30% or below.
-
New credit inquiries: (10%)
Inquiries are basically how many times you have applied for credit and how many times you have been inquired for that. Because lenders may think you are desperate for cash which might affect your credit score and reliability.
- Credit Mix: (10%)
Credit mix shows your different kinds of credit accounts. Like a personal loan, mortgage loan. It affects your credit score positively. Because it shows how much you are capable of managing your different accounts if all the accounts are in good standing.
How often the Credit score is updated?
Usually, You can check Credit score updated after every 30 days. Credit bureaus update your information according to the data they get from your lenders like payment history, credit limit changes, account balance, etc. Sometimes, it might take more than 30 days as well.