Many Canadians wonder how their credit score, a number between 300 and 900, is mysteriously generated. To solve this, financial tech companies like Mogo, Credit Karma, and Borrowell now make it easier than ever to 'soft check' your credit score whenever you want. A soft credit check means that using their service will not have any impact on your score.
Knowing and understanding your credit score is a good thing, especially if you are planning to take out any sort of loan, buy a house, or even apply for a new job. More importantly, by accessing your detailed credit report (a report that shows what components are impacting your score), you can check to see if there are any mistakes negatively impacting your history.
It's important to note that a credit score as a stand alone metric doesn't give the entire picture of someone's financial health. According to this MoneySense article, some Canadians are focusing too much on their credit score, and not enough on other personal finance components like investing and saving for retirement. Remember, your credit score is mainly a metric that lenders use to evaluate the likelihood that you will repay a particular loan, it doesn't represent your entire financial health.
Checking your score
There is no real downside to checking your credit score, especially since it only takes a minute, it's free, and doing so doesn't negatively impact your score.
Borrowell has a great platform for checking and improving your credit - for free! You can see both your credit score and more detailed credit report. There is also a virtual coach that can help improve your credit.
If you are curious to know what your score is, check for free with Borrowell!