How to Check Your Credit Score in Canada: The Simple Move That Can Change Your Car Buying Experience

If you have ever thought about buying a car, or even just wondered why your loan rates are what they are, checking your credit score in Canada is a step you can’t skip.

We’ve done it ourselves, both out of curiosity and necessity, and it’s one of those things that’s easier than it sounds. Here’s what we found and how you can check yours without getting tangled up in jargon or red tape.

Key Takeaways

1. Checking your credit score in Canada is free and doesn’t affect your score when done through banks or credit bureaus.
2. Your credit score is shaped by several factors - payment history, credit utilization, account age, and more - and understanding these helps you take control.
3. Staying on top of your credit report sets you up for better loan options, including flexible car financing, like what we offer through Cars with Chloe.

How to Check Your Credit Score in Canada

Credits: Nabil Anouti

The first time we checked our credit scores, we expected hoops, fees, and maybe some confusion. But actually, it’s straightforward if you know where to look. In Canada, both banks and credit bureaus let you check your score for free, with no hit to your credit. [1]

Checking Your Credit Score via Banks

Most of us bank with one of the big names, and they all have credit score tools right in their online or mobile banking. We’ve checked ours through a couple of different banks over the years, and the steps are nearly identical each time.

Major Canadian Banks Offering Free Credit Score Access

Here’s what we’ve seen:

• CIBC CreditView: You log in to the CIBC Mobile Banking App, select “Check Credit Score,” and agree to the terms. The CreditView tool gives you monthly updates, a score simulator (fun to play with but sobering sometimes), and alerts for any big changes.
• RBC TransUnion CreditView Dashboard: Online banking customers can see their TransUnion credit score right from the dashboard. No extra sign-ups.
• BMO Credit Score: Same idea. Through BMO’s online platform or app, you access the TransUnion CreditView Dashboard. It’s a couple of taps from your account screen.
• Scotiabank Credit Score Dashboard: If you’re a Scotiabank user, the dashboard shows your score and offers pointers on improving it.
• TD Bank Mobile App: In the app, tap the More icon, pick “Credit Score,” and agree to the terms. The number pops up instantly.

Soft Inquiries and Their Impact on Your Score

We’ve heard people worry - does checking your score hurt it? Not when you’re doing it yourself through your bank. That’s what’s called a “soft inquiry,” and it leaves your score untouched. Only “hard inquiries,” like when you actually apply for a loan or new credit card, can nudge your score down a little, and even then, it’s not usually drastic.

Using Credit Bureaus for Credit Score and Report Access

If you want to go straight to the source, Canada’s two big credit bureaus - Equifax and TransUnion - let you check your credit report and score for free. We’ve used both, especially when we wanted to double-check for errors or just see the details.

Equifax: Free Credit Report and Score Access

You can request your Equifax credit report online without a fee. The process takes about five minutes. We had to answer a few identity questions, but it’s nothing too personal - think addresses, previous employers, or old loan amounts.

TransUnion: Online Credit Score and Report Services

TransUnion’s site offers a similar free report service. You enter your info, verify your identity, and get access to your credit profile. Quebec residents have a special online option as well.

Quebec Residents: Specific Access Options at TransUnion

If you live in Quebec, TransUnion’s portal allows for free online access to both your credit report and score, which we found convenient for our friends out east.

Requesting Reports Without Affecting Your Credit Score

Here’s the thing - when you check your own credit report or score through these bureaus, it’s recorded as a soft inquiry. No penalty, no worries.

Understanding Credit Scores in Canada

The first time we saw our credit scores, the numbers alone didn’t mean much - just digits, right? But each range actually tells lenders (and ourselves) a lot about our financial habits.

Average Credit Score and Its National Context

The average Canadian credit score hovers around 760. Many are surprised by that. If yours is in the 700s, you’re already above average. [2]

Credit Score Ranges and What They Mean

• Very Poor to Poor (300-659): You might have missed payments, or maybe you’re just starting out. We’ve seen how this can make securing bad credit auto loans tougher, but not impossible.
• Average to Good (660-740): Most Canadians land here. You’ll get fair interest rates, and loan approvals are common.
• Excellent (741-900): If you’re here, banks roll out the red carpet. Best rates, best terms.

Key Factors Influencing Your Credit Score

We’ve spent time digging into our reports, and here’s what really moves the needle with your credit score:

• Payment History: Missed or late payments can drag your score down fast.
• Credit Utilization: That’s how much of your available credit you’re actually using. Staying under 30 percent is generally better.
• Length of Credit History: The longer your accounts have been open, the better.
• Types of Credit Accounts: Having a mix - credit card, loan, line of credit - can help.
• Recent Credit Inquiries: Too many applications for new credit in a short time can lower your score, even if only temporarily.

Managing and Improving Your Credit Score

Over the years, we’ve tried everything from credit simulators to old-school budgeting to get our numbers up. It’s never about overnight fixes - it’s about habits.

Tips for Maintaining a Good Credit Score

A few tactics have helped us keep our credit standing healthy:

• Pay debts on time: Even a single late payment can take months to recover from.
• Keep credit card balances low: We aim for under 30 percent of our limit, as a rule.
• Build credit age: Don’t close old accounts unless you must.
• Limit new credit applications: Only apply for credit when you need it.

Tools and Resources for Credit Monitoring

We’ve tried credit score simulators and found them surprisingly useful for planning - what if I pay off this card, or open a new line of credit? Monitoring services can also alert you to changes, which comes in handy for catching mistakes or fraud.

• Credit Score Simulators: These let you play with scenarios - pay off a loan, open a new account, see how your score might change.
• Credit Monitoring Services: Some banks and online platforms offer alerts for any changes to your report, which we found reassuring.

If you spot something wrong on your report, you can dispute it through the bureau’s website. We’ve done this before (a case of mistaken identity, as it turned out), and the process was straightforward.

Credit Building and Repair Options

When our own scores dipped - after a job loss, for example - we got serious about credit repair. Here’s what worked:

• Secured Credit Cards: By putting down a deposit, we could rebuild trust with lenders, a crucial step for those needing solutions like bad credit car loans, and watch our scores improve over time.
• Credit Counseling and Debt Management: A session with a non-profit counselor helped us set up a repayment plan.
• Credit Repair Services: These exist, but we found that most steps could be done ourselves for free, if you’re willing to put in the effort.

Understanding the Impact of Credit Scores on Financial Products

Having checked our own scores right before applying for a car loan, we saw first-hand how it shapes what you get offered.

• Loan and Mortgage Approval: Higher scores mean more “yes” from lenders.
• Interest Rates: A jump of even 20 points can be the difference between 4 percent and 8 percent APR.
• Credit Limits: Better scores may mean higher borrowing limits.
• Credit Application Outcomes: We’ve seen friends with low scores get denied for car loans, while others with stronger scores got approved the same day.

FAQ

How often should I check my credit score to keep track of my financial health without hurting it?

You can check your credit score as often as you like in Canada without it negatively affecting your credit. Unlike credit inquiries from lenders, which might impact your score, when you check your own score, it’s considered a soft inquiry. This means regularly reviewing your score can help you spot errors or potential identity theft early without any downside.

What details on my credit report can cause my credit score to drop unexpectedly?

Your credit score might drop due to several factors like missed payments, high credit card balances, or new credit applications. Even something like a recent change of address or errors in your personal information can sometimes cause discrepancies, so reviewing the full credit report carefully is important to understand what affected your score.

Can I get my credit score for free from official sources in Canada, or do I need to pay?

In Canada, you have the right to access your credit report for free once a year from the major credit bureaus. However, your credit score itself might not always be included with the free report. Some services offer free credit scores, but many require payment. It’s important to use trusted sources to avoid unnecessary fees or scams.

Does having a low credit score impact my chances of renting or getting utilities in Canada?

Yes, many landlords and utility companies in Canada check credit scores as part of their application process. A low credit score could make it harder to rent an apartment or get a utility account without a deposit. Understanding your credit score before applying can help you prepare and explain your situation if necessary.

How can errors on my Canadian credit report affect my credit score, and what is the best way to fix them?

Errors such as incorrect account details, wrong balances, or fraudulent accounts can lower your credit score unfairly. If you find mistakes on your credit report, you should contact the credit bureau to dispute the errors. Providing clear evidence and following up can lead to corrections that improve your score and protect your financial reputation.

Practical Advice: Checking and Using Your Credit Score

Checking your credit score in Canada is not just about curiosity - it’s about preparation. We check ours before any big purchase, especially when we’re helping someone apply for a car loan through Cars with Chloe. Understanding your credit score can help you negotiate better rates, avoid surprises, and pick the right financing.

If you’re ready to take the next step - whether you’re new to credit or looking to improve your situation - we invite you to start with us. Our application is quick, and there’s no commitment. Apply for a car loan with Cars with Chloe and see how your credit score can open doors you might not have expected.

References

1. https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/order-credit-report.html
2. https://publications.gc.ca/collections/collection_2016/acfc-fcac/FC5-8-25-2016-eng.pdf

Related Articles

• https://carswithchloe.com/blog/understanding-bad-credit-scores/
• https://carswithchloe.com/blog/what-factors-impact-credit-scores/
• https://carswithchloe.com/blog/when-does-credit-score-update/