Where Do I Get My Free Credit Report from TransUnion Canada?
A step-by-step guide and information about your credit report, rating, and score
By Carmen Chan
We receive a lot of questions about how someone can get a free credit report for themselves, and then what to do with the information they discover. That’s because a credit report outlines your credit history, and if you’re curious about what it looks like or if you have lost track of what you’ve done credit-wise, it will fill in the gaps and help give you an overall picture of your financial situation.
There are two main credit bureau companies in Canada, TransUnion and Equifax, and both provide consumers with their own credit report for free. The free option, however, isn’t always the first one you see when you try to obtain your report. To make things easier, here is a quick breakdown of what your credit report is, what it shows, and what you need to know for accessing your free credit report from TransUnion.
What Is a Credit Report?
Your credit report is a record of your credit usage and payment history. It also contains other information that is used to calculate your credit score and shows you how your score compares to the national average. The thing to remember about information that’s not directly related to your ongoing credit use, e.g. address, employer, spouse, etc., is that it was updated the last time you applied for credit. For that reason, it can look very out of date sometimes.
- Your payment history: reflects your payment habits, whether you pay on time or make late payments
- Utilization ratio: the amount of credit you use divided by the amount of credit available to you (generally speaking, it is best to have a utilization ratio no more than about 60 percent)
- The number of inquiries you’ve made: seeking credit too often may make you look like a risky candidate
Everything You Need to Know About Credit Reports, Ratings & Scores in Canada
What Is a Credit Score?
A credit score is a 3-digit number between 300 – 900 that lenders, creditors, landlords, and sometimes employers or insurance companies use to determine the likelihood that you will repay money that you borrow.
Your credit score is based on specific information in your credit report and it’s not a static number — it changes often, and lenders will differ in how they use and interpret your credit score. You also have more than one credit score because each credit bureau will calculate your score based on their own scoring algorithm and information reported to them by your creditors. Creditors have the choice of which agency to deal with so your credit reports may not look the same either.
It’s also interesting to note that every bank and credit generates their own special credit score. They then base their lending decisions on their score, plus their chosen credit bureau’s score, plus all your other financial information.
What Does a Credit Score Mean?
Your credit score is built on a range from 300 to between 850 or 900 (depending on the credit reporting agency). Depending on where you fall between this range, your credit can vary between poor, fair, good, very good, and excellent. A lower score can indicate a poor credit history or “too new to score” for someone who hasn’t had a chance to build up their credit history – i.e. a young adult or newcomer to Canada.
Another way to look at it is if a person’s credit score is 590, it means that “590 people out of 900 are likely to repay their debt.” If someone’s score is 780, it means that “780 people out of 900 are likely to repay their debt.” The number represents the odds that a lender will get the money back that they lend to someone. The higher the number, the better the odds.
What’s the Difference Between My Credit Report and My Credit Score?
Does My Credit Score Matter?
While getting overly fixated on the perfect credit score is not something we’d encourage, being aware of it, and its impact on your financial future is important. The closer your credit score is to 900, the less of a borrowing risk you are to creditors and other lenders. This can make your financial life significantly easier, gaining you easier access to affordable credit products and loans when you need them. A solid credit score is a great help when you’re buying your first home, getting a car loan, and depending on the sector you work in – it can impact where you work as well.
7 Things That Are Not On Your Credit Report
Free Credit Report from TransUnion Is a Consumer Disclosure
TransUnion calls their free credit report a “consumer disclosure.” It includes a complete account of all the information on your TransUnion credit report, and lists the inquiries made for your credit information, including account management inquiries, non-credit related inquiries, and your own inquiries. Meanwhile, that eye-catching banner that advertises your “free credit score” is actually more of an advertisement for something you likely don’t need.
Is a Free Credit Score Really Free?
Other Options to Access Your Credit Reports and to Get Help With Debt
There are several options for getting your free credit reports from TransUnion and Equifax. If they don’t work for you, don’t worry. It doesn’t necessarily mean you’ve done anything wrong; it just means that you’ll have to try one of their other methods. It’s possible that for some reason the information you entered doesn’t perfectly match the credit reporting agency’s records. Then, once you do get your reports, if you need help reading the credit reports or dealing with the debts listed, we’re happy to help you.
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