Does checking your credit score lower it in Canada?
Lots of people avoid looking at their credit because they think the look itself costs points. It does not. Here is what does.
Soft vs hard inquiries
| Soft inquiry | Hard inquiry | |
|---|---|---|
| Who triggers it | You, or a pre-screen | A lender, after you apply |
| Affects your score | No | Slightly |
| Typical examples | Checking your own score | Card, loan or mortgage application |
Hard inquiries generally stay on your credit report for around three years, but their effect on your score fades much sooner.
What does lower your score
- Late or missed payments, the biggest hit.
- Carrying a high balance relative to your limit.
- Applying for several cards or loans in a short window.
- Accounts sent to collections.
Shopping for a mortgage or car loan
Rate shopping is normal. Scoring models often treat several inquiries for the same type of loan within a short period as one, so comparing lenders usually costs little. Ask the lender how they handle it before you apply.
A simple monitoring routine
Monthly
Glance at your score in your bank or credit-monitoring app.
Yearly
Request your full report from Equifax and TransUnion and read it line by line. Dispute anything you do not recognize.
Not sure how? Here is how to check your credit score in Canada for free.
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