How Do I Do a Credit Check? Simple Steps You Can Follow

How Do I Do a Credit Check: A Comprehensive Guide

In today’s financial landscape, understanding your credit history is crucial for making informed decisions about loans, mortgages, and other financial products. A credit check allows you to review your credit report and score, which are pivotal in determining your creditworthiness. Whether you’re applying for a personal loan or planning to buy a home, knowing how to do a credit check can help you stay ahead. This guide, tailored for Canadians, outlines the steps to perform a credit check, drawing inspiration from the structure and content of the Financial Consumer Agency of Canada (FCAC) page, while optimizing for the keyword “how do I do a credit check” to enhance search engine rankings for SimplePret.

How Do I Do a Credit Check?

Getting Your Credit Report and Credit Score

A credit check involves accessing your credit report and score from one of Canada’s two major credit bureaus: Equifax and TransUnion. These bureaus collect and store information about your financial behavior, including payment history, credit accounts, and public records like bankruptcies. Knowing how to do a credit check empowers you to monitor your financial health, spot errors, and detect potential identity theft. Both Equifax and TransUnion offer multiple ways to access your credit report, and in some cases, your credit score, either for free or at a cost. Understanding these options ensures you can choose the method that best suits your needs.

Your credit report is a snapshot of your credit history, detailing personal information, credit accounts, and payment patterns. Your credit score, a three-digit number typically ranging from 300 to 900, reflects your creditworthiness. Lenders use this information to assess your eligibility for loans and the interest rates you may qualify for. By regularly performing a credit check, you can ensure your financial profile is accurate and improve your chances of securing favorable loan terms.

Get Your Credit Report Online

One of the most convenient ways to do a credit check is by accessing your credit report online through Equifax or TransUnion. Both bureaus provide platforms where you can request your report, often with the option to view your credit score for a fee. For instance, Equifax offers access through its myEquifax platform, while TransUnion provides similar services via its website. To get started, visit the respective bureau’s website, sign up for an account, and verify your identity by providing personal details such as your name, address, and Social Insurance Number (SIN).

When performing a credit check online, ensure the website is secure by checking for “https” in the URL. This method is quick, often providing instant access to your report. However, paid services may be required for immediate access or to view your credit score. Be cautious of third-party websites offering free credit reports, as they may charge hidden fees or sell your data. Stick to reputable sources like Equifax and TransUnion to safely conduct your credit check.

Get Your Credit Report by Mail

For those who prefer not to use online services, requesting a credit report by mail is a reliable and free option. Both Equifax and TransUnion allow you to order your credit report through postal mail, ensuring you can perform a credit check without internet access.

Order by Mail

To order your credit report by mail, download the request form from the Equifax or TransUnion website. Complete the form with your personal information, including your full name, current and previous addresses, and date of birth. You’ll need to include copies of two pieces of identification, such as a driver’s license or passport, to verify your identity. Mail the completed form and identification to the address provided by the respective bureau. Equifax’s mailing address is typically found on their Credit Report Request Form, while TransUnion provides similar instructions on their site.

Processing times for mailed requests may take several weeks, so plan accordingly if you need your credit report for an upcoming loan application. This method is ideal for those who prioritize security and prefer not to share sensitive information online.

Order by Phone

Alternatively, you can order your credit report by phone, another free option for conducting a credit check. Contact Equifax at 1-800-465-7166 or TransUnion at 1-800-663-9980 and follow the automated instructions or speak with a representative. You’ll need to provide personal details to confirm your identity, such as your SIN or credit card number, if requested. Phone requests are processed similarly to mail requests, with the report mailed to your address. This method is convenient for those who want to avoid paperwork but still prefer not to use online platforms.

Get Your Credit Report in Person

In some areas, Equifax and TransUnion allow you to request your credit report in person, offering another avenue to perform a credit check. Visit a local office of either bureau, bringing at least two pieces of identification, such as a driver’s license or utility bill. This method is less common due to limited office locations but may be suitable for those who prefer face-to-face interactions or lack access to mail or internet services. Check the bureau’s website for available locations and hours before visiting.

Get Your Credit Score

While your credit report is available for free, accessing your credit score often requires a fee unless you’re a resident of Quebec, where TransUnion provides free score disclosure. To do a credit check that includes your score, visit Equifax or TransUnion’s online platforms and select a paid service, such as Equifax’s Credit Score™ or TransUnion’s CreditVision™. Alternatively, some financial institutions, like Scotiabank or TD Canada Trust, offer free credit score access through their online banking platforms or apps, such as the TransUnion CreditView® Dashboard.

Your credit score is calculated based on factors like payment history, credit utilization, and the length of your credit history. A score between 660 and 724 is considered good, while 725 to 759 is very good, according to Equifax. Knowing your score through a credit check can help you understand how lenders perceive your creditworthiness and take steps to improve it if needed.

Protect Yourself When Getting Your Credit Report or Score

When learning how to do a credit check, protecting your personal information is paramount. Scammers may pose as legitimate agencies, offering free credit reports to steal your data. Always verify that you’re dealing with Equifax or TransUnion by using their official websites or contact numbers. Avoid sharing sensitive information, such as your SIN, on unsecured websites lacking “https” in the URL. Equifax warns of scammers claiming to be agents, so if you receive unsolicited calls requesting your ID, hang up and contact Equifax directly at 1-800-465-7166.

Additionally, be wary of credit repair companies promising to “fix” your credit for a fee. In Ontario, it’s illegal for such companies to charge upfront or guarantee improvements without reviewing your report. Always read contracts carefully and know your rights, such as the 10-day cooling-off period for credit repair services in Ontario.

What Is Credit Monitoring?

Credit monitoring is a service that tracks changes to your credit report, such as new inquiries or accounts opened in your name, and alerts you to potential fraud. Many financial institutions and credit bureaus, including Equifax’s CompleteTM Premier, offer monitoring services for a monthly fee. These services are particularly useful if you’ve been a victim of a data breach or suspect identity theft. By regularly monitoring your credit, you can quickly address discrepancies, making it an essential part of how to do a credit check effectively.

Credit monitoring doesn’t replace the need to perform a credit check yourself but complements it by providing ongoing vigilance. For example, if someone applies for credit in your name, you’ll receive an alert, allowing you to act swiftly to protect your financial reputation.

How Often Should You Check Your Credit Report?

The Government of Canada recommends checking your credit report at least once a year to ensure accuracy and detect signs of identity theft. Regular credit checks help you identify errors, such as incorrect payment records or unauthorized accounts, which could lower your credit score. If you’re planning to apply for a loan or mortgage, perform a credit check a few months in advance to correct any inaccuracies. Both Equifax and TransUnion allow free annual reports, so take advantage of this to maintain your financial health.

Frequent credit checks won’t harm your score, as checking your own report is considered a “soft hit.” However, multiple “hard hits” from lender inquiries within a short period can negatively impact your score. To minimize this, consolidate loan applications within a two-week period, as credit bureaus may treat these as a single inquiry.

Why SimplePret Can Help

At SimplePret, we understand that a strong credit profile is key to securing the best loan terms. Whether you’re applying for a personal loan, mortgage, or debt consolidation, knowing how to do a credit check is the first step. Our team can guide you through the process, helping you access your credit report and understand your score’s implications. By partnering with trusted lenders, we ensure you find financial solutions tailored to your needs.

Ready to take control of your financial future? Apply now and let SimplePret help you achieve your goals with confidence.