Table of Contents Contents
According to an Ipsos survey, 69% of Canadians have no idea what their credit score is. This is a problematic statistic as credit scores impact almost every aspect of life. A good credit score makes loan approvals simpler and gives you access to lower interest rates, which can save you thousands of dollars over your lifetime, making it an important factor in your financial life.
Some employers also use credit scores as a way to judge character, and many landlords conduct credit checks before handing over the keys. Having a good credit score shows lenders and others that you’re trustworthy with money. It also makes it easier to achieve your financial goals.
What’s A Good Credit Score in Canada?
Credit scores in Canada range from 300 to 900. According to Equifax, a good credit score is 670 and over. Scores past 800 are excellent, while anything between 300 and 579 is considered poor. When it comes to your credit score, it’s extremely important that you have an idea of your score so you know what you can and can’t qualify for.
Check Your Credit Score For Free
In the past, the only way to obtain your credit score was through a financial service provider or by paying for a copy of your credit report. Thanks to the rise of fintech companies, you can now get this information for free.
Curious what your credit score is? Download one of these trusted apps to get a better picture of your financial well-being. All of these apps run soft credit inquiries, so there’s no risk of lowering your credit score.
They also offer some other great benefits and favourable terms to help you make smarter financial decisions. Let's discuss the top four best apps that are available to Canadians now, as well as some alternatives.
1. Borrowell
Borrowell is a Canadian credit education company that lets you access your credit score and credit report online for free.
Popularity: Borrowell was the first company in Canada to offer this service and has been used by more than 1.5 million Canadians since launching in 2014.
Downloaded over 100,000 times, the Borrowell app gives you a full picture of your financial health. From checking your credit score and upcoming bills to reviewing personalized loans and banking recommendations, the app allows you to see your entire credit profile in one place.
Accuracy: Borrowell has an ongoing partnership with Equifax, one of the world’s largest credit monitoring bureaus. The credit score you see in the app is your Equifax Risk Score 2.0, which is used throughout Canada when making consumer credit decisions. Equifax calculates the credit score and provides all the information in your credit report.
Safety: Your data stays safe and secure with Borrowell. The fintech company uses bank-level security with 256-bit AES encryption to keep your information under lock and key.
Key features
- Free credit score monitoring: See your weekly updated Equifax credit score and report for $0.
- Credit education: Molly, Borrowell’s AI-powered Credit Coach, helps you understand your credit score and provides personalized tips on how to improve it.
- Track bills: Only available on the app, this feature plans for upcoming bills, predicts your future account balance, and lets you know when your account balance is low.
- Personalized loan recommendations: Borrowell works with over 50 financial companies, including Spring Financial, and suggests the best financial products (loans, credit cards, bank accounts, insurance, mortgages) for you by analyzing your credit profile. If you follow one of the recommendations, Borrowell will get a referral fee from the partner. You’ll still have access to your free credit score even if you don’t use any of the recommended products.
2. Mogo
Based in Vancouver, Mogo is a financial services company offering free credit score monitoring, identity fraud protection, rewards credit cards, personal loans, and mortgages.
Popularity: Mogo is best known for the MogoCard, a Visa prepaid credit card that comes with innovative perks like Bitcoin cashback and carbon offsetting. The company has over 1.6 million Canadian customers, and the app is available only in Canada (excluding Quebec).
Accuracy: The credit score in your Mogo account is from Equifax, so you can rest assured that it’s accurate. Mogo will send you an updated score every month and alert you any time a hard credit inquiry has been run on your Equifax account.
Safety: Mogo takes security seriously and employs the latest Transport Layer Security (TLS) protocols for encryption to protect your data. AWS secure data centers safeguard sensitive information, while multiple firewalls protect the company’s internal and external networks. Sophisticated software also monitors unauthorized access to its systems, and security audits are performed by vetted third parties.
Key features
- Free credit monitoring: Review your Equifax credit score for free for 90 days or get credit monitoring on an ongoing basis when you get approved for the Mogo Visa Platinum Prepaid Card.
- Big rewards: Win $200 worth of Bitcoin if you’re the customer with the most improved credit score in one month.
- Free identity fraud protection: Receive alerts whenever someone conducts a hard credit check on your Equifax account.
- Mogo Visa Platinum Prepaid Card: Earn 2% Bitcoin cashback and enjoy free carbon offsetting with every purchase you make.
- Buy and sell Bitcoin: Invest in Bitcoin with minimal fees and secure storage.
- MoneyClass: Get tips on how to save, budget, and invest.
3. Credit Karma
Credit Karma helps you take control of your credit situation by providing free credit monitoring, personalized credit recommendations, and educational materials.
Popularity: The American personal finance company has over 100 million customers worldwide and was acquired in 2020 by Intuit, the same company behind TurboTax and Mint. Over 500,000 Canadians have installed the Credit Karma app.
Accuracy: The credit score and report in the Credit Karma app comes from TransUnion, a leading credit reporting agency in Canada. Updates from TransUnion are available every seven days; however, keep in mind that your credit report may not change with every update as creditors usually take around 30 days to report new information (i.e., payment activity and new balances) to credit bureaus.
Safety: Credit Karma uses bank-level 128-bit encryption to protect the transmission of your data. It has a dedicated security team that investigates issues immediately and hires independent experts to conduct regular security assessments.
The company also doesn’t share your personal information with unaffiliated third parties. They also now offer identity theft protection and will alert you to any changes to your credit information.
Key features
- Free credit score monitoring: Review your weekly updated TransUnion credit score at no cost and get alerts when important changes are made to your credit report.
- Personalized recommendations: Find credit cards that match your credit profile. Credit Karma earns a commission from the issuing bank if you redeem one of its offers.
- Credit tips and education: From budgeting to credit building, Credit Karma breaks down complex financial topics into easy-to-understand articles.
4. Clear Score
Clear Score is a Canadian company that offers you access to your credit score and makes sure to update it weekly. You can also see your approval chances for loans and credit cards before you even apply.
Popularity: Currently, over 20 million people are using Clear Score to keep track of their credit reports. There are no fees, and you can get free access to your credit score weekly, forever, with no subscription fees.
Accuracy: Because Clear Score updates your credit score weekly, you’re always getting an accurate picture of your financial life. Their access to credit information and education can also help you improve your financial literacy.
Safety: Just like the other free credit score apps, Clear Score uses 256-bit encryption, which is considered to be bank-level protection. This helps to protect your information from fraudulent activity while helping you make informed financial decisions.
Key Features:
- Free Credit Monitoring: You can get updated weekly credit scores from your Equifax credit report.
- Access to Credit Cards: Compare Credit Cards with your approval odds and see which is the best new credit option for you.
- Personalized insights: Included with Clear Score are tips on how to improve your credit score and information regarding your current credit situation.
5. With Your Bank
Another option for checking your credit score is by using your bank. Depending on which financial institution you bank with, you can check your credit score online by logging into your online banking or mobile banking app.
Just like with the free online credit check sites, the banks will show you an updated report on your soft credit score. This score isn’t 100% accurate, but it will give you a good indication of where you’re excelling when it comes to credit and where you need to improve by progress tracking.
6. Through the Credit Bureaus
Instead of going through the online free sites, you can also do a soft credit check directly with the Canadian credit bureaus. In Canada, there are two main credit bureaus: Equifax and Transunion. This means that you could get your Equifax credit score right from Equifax and your Transunion credit score directly from Transunion with the Transunion credit score tool.
While you do have the option to request and pay for a hard credit check with both of these credit bureaus, the soft credit check will give you enough information about your score, even though it won’t include your full credit history. Also, the hard credit checks with your full credit report impose a small hit to your score every time one is done, so they should be limited to 5 or fewer per year.
What’s Included in Your Free Credit Checks
The exact details of what’s included in your free credit score checks are dependent on which provider you use. Some will check your Equifax credit report, while others will check your Transunion credit report. This will determine which credit accounts show up on your report and where your score sits.
With that in mind, though, generally, what’s included in your free report is a credit score, a list of your credit accounts, including any car loans, your payment history, your total credit limits, the amount left that you owe on each credit line, and your available credit.
Depending on the provider you use, this information will be updated every week or so and reflect your current report, which is an important factor in determining what you qualify for and when you’ve reached your total credit limit.
