Did you know that credit monitoring services can help you protect your credit score from various factors that can affect it?
The health of your credit depends on a variety of factors, including but not limited to your use of credit and loan products that are reported to the credit bureaus, potential fraud issues, the types of credit accounts you have, and even the length of which they’ve been active. Since there are so many factors at play when it comes to your credit, it’s important to regularly monitor both your credit scores and credit reports to ensure ensure the information is accurate.
What Is Credit Monitoring?
A credit monitoring service can help you keep track of your credit report and make sure your credit accounts are all in good standing and can even help you deal with fraud. If you frequently check your credit score from either Equifax or TransUnion, then credit monitoring might be exactly what you need.
How Does Credit Monitoring Work?
All credit monitoring services will work slightly differently. But in general, credit monitoring grants you access to your credit report, which means you can check your credit report on a regular basis without having to request a new copy and pay another fee. Once you sign up for the service, you’ll have access to your own account where you can review your credit report and receive alerts concerning your credit information.
Some credit monitoring services have additional tools and services that will show you your credit score and help you manage it. For example, some credit monitoring services have a built-in simulator that shows you the potential effect certain actions may have on your credit. For example, making late payments, applying for new credit, paying off certain debts, etc.
How Much Does Credit Monitoring Cost In Canada?
Depending on which credit monitoring service providers you choose, it can cost you on average anything between $9.99 and $34.99 a month. Services with additional tools and features like a credit simulator or debt calculator will often charge more than other providers.
Credit Monitoring Services In Canada
| Monthly Fee | Identity Theft Protection | Credit Building | Additional Tools | |
| Transunion | $19.95 | Yes | No | – Personalized Debt Analysis & Trends – Identity theft insurance |
| Equifax | $19.95 or $29.95 | Yes | No | – Identity theft insurance – Identity restoration – Lost Wallet Assistance – WebScan – Credit Score Trend |
| Borrowell | Free | No | No | – AI credit coach – Product recommendations |
| FirstReport | $12.99 or $19.99 | Yes | No | – Historical Scan – ID Restoration |
Transunion
TransUnion is one of the two major credit bureaus in Canada. They offer a credit monitoring service for a monthly cost of $19.95, which comes up to $239.40 a year. When you sign-up for TransUnion’s credit monitoring service, you’ll be able to review your TransUnion credit report and credit score without any restrictions.
You’ll also get email alerts when there are any major changes to your credit report such as new accounts being opened. The service also comes with additional features including identity theft insurance (up to $50,000 coverage), and a debt and credit analysis tool. This tool analyzes your debt and credit to help you make better credit decisions.
Equifax
Equifax also offers a credit monitoring service for a monthly fee. They offer two options: Equifax Premier ($19.95) and Equifax Friends and Family ($29.95). The Equifax Friends and Family option offers all the features of Equifax Premier except it allows you to add a second person to your plan so that both profiles may be monitored.
When you sign-up for Equifax’s credit monitoring service you’ll have unlimited access to both your Equifax credit report and credit score. You’ll also get alerts on any key changes to your report or score. Similar to Transunion, you’ll also have access to additional tools such as:
- Id Restoration – With this, you’ll have access to a specialist who will help guide you through restoring your identity in the event of identity theft.
- WebScan – If your SIN, bank account number, or credit card numbers are found on shady websites, Equifax will alert you.
- Lost Wallet Assistance – If you lose your wallet, Equifax will help you cancel and restore your credit cards and ID.
- Credit Score Trending – This feature will allow you to see your credit score trends over time.
- Identity Theft Insurance – Get up to $1M coverage for identity theft related expenses.
Borrowell
Borrowell is a Canadian company that strives to educate and make personal finance more accessible. They currently offer Canadians access to their Equifax credit report and score for free, which is updated on a weekly basis. Along with it, you’ll also get:
- AI-Powered Credit Coach – With Borrowell’s AI-Powered Credit Coach, you’ll get personalized advice on how to improve your credit.
- Personalized Credit Recommendations – Borrowell will analyze your credit profile to provide you with personalized recommendations for different financial products.
FirstReport
You can get this service for a fee of $12.99 or $19.99 a month depending on the plan you get. FirstReport offers two plans: FirstReport – ID and FirstReport – Advantage. With the FirstReport- Advantage plan, you’ll have the same benefits as the ID plan plus access to your Equifax Canada Credit Report (quarterly), credit score (monthly), and dual credit bureau monitoring. Unlike the other credit monitoring services, this one provides you with credit monitoring with both credit bureaus. So if there’s any suspicious activity reported only with one credit bureau, you’ll still be able to catch it.
Additionally, both plans offer the following features:
- Historical Scan – The feature uses your information and scans it against shady websites to see if there’s any suspicious activity.
- ID Restoration – This feature offers a number of perks including a victim toolkit, fraud alerts, emergency cash and other identity restoration tools.
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Is Credit Monitoring A Good Way To Protect Your Identity?
READ ARTICLEPros Of Credit Monitoring In Canada
Here are some benefits of credit monitoring:
Understand Your Credit Health
A good reason to check your credit score on a regular basis is to always be in-the-know about where you stand in regards to your credit health. Your credit score can play a huge role in your ability to access credit. In fact, many lenders, particularly banks, have minimum credit score requirements. Knowing your credit score can help you apply with lenders whose minimum requirements you meet. This can help you avoid applying with any lender you don’t have a chance of qualifying with, moreover, you’ll avoid any unnecessary hard credit checks which can negatively affect your credit.
No matter what shape your score may be in, it is absolutely essential that you know what it is. If your score is high, great. If it’s not, at least you’ll know that you need to take steps to improve it.
Find Out What Is Affecting Your Score
If you keep tabs on your credit score, you’ll be better able to understand what actions are affecting your credit. For instance, you might notice that you have a few missed payments on your accounts or that your credit utilization ratio is high. By having a clear understanding of how specific actions may be impacting your credit score, you will know what you should do or avoid to help improve your credit scores.
Catch Any Errors
Mistakes on your credit report can cause your score to dip without you knowing. By checking your credit score and looking over your report, you’ll have the opportunity to see if all information is accurate. If your score is lower than you think it should be, this may be a sign that there may be errors on your credit report that need to be investigated and fixed by the credit bureaus.
Protect Yourself Against Identity Theft
Identity theft is rampant these days, especially as more and more personal information is being put out there on the internet for hackers to see. Identity theft can have a serious effect on your finances and credit health. By monitoring your credit, you’ll be better able to spot signs of identity theft and take appropriate action to stop any damages from it.
This service will also make it easier for you to contact any of your creditors affected in the event that your identity is stolen. You’ll be able to access all your creditors’ information in one convenient location.
Get Alerts
Credit monitoring also provides alerts for key changes to your account like missed payments. You’ll also get alerts when a new credit account is opened in your name. This can help prevent fraud from identity theft. Overall, it keeps you informed about all the issues and changes concerning your credit.
Additional Tools
Depending on the credit monitoring provider, you may have access to tools and services that can help you monitor and build your credit scores.
Cons Of Credit Monitoring
While there are benefits to a credit monitoring service, there are also certain drawbacks to consider.
Cost
Most credit monitoring services will have a price tag. If you’re on a tight budget, the cost may not be worth the benefits. Instead, you can manually check your credit report online for free with either credit bureaus or other third-party services like Borrowell.
Doesn’t Prevent Identity Theft
While credit monitoring can help you spot signs of identity theft and even stop the fraudster from opening credit accounts in your name, it cannot prevent identity theft. It’s a common misconception that a credit monitoring service can help you prevent identity theft. While this is regrettably not the case, credit monitoring can help you react quickly and help you stay organized should anyone ever try to use your stolen identity to open credit accounts.
If a criminal applies for new credit in your name or opens a new account in your name, a credit monitoring service will be able to alert you that a new account has been opened or that there has been a change to your credit report. This can help you take action right away and hopefully limit the amount of damage they’re able to do.
How To Choose A Credit Monitoring Service
There are a number of service providers out there who provide credit monitoring services. In order to choose one that gives you the most value for your money, we’ve compiled a list of factors you should evaluate before signing up for a credit monitoring service.
Legitimacy
It is important to consider who is providing the service. You’ll need to provide personal and financial information to the service provider, so make sure you’re comfortable with this before signing up.
Customer Service
Bad customer service can really impact your experience with a product, especially when it comes to online services. The ability to access good customer service when you encounter problems and technical difficulties is essential for customer satisfaction. Moreover, you’ll want to read reviews on their policy on cancellation as some providers make it extremely difficult.
Features
Besides the ability to monitor your credit, do you need the additional tools they are providing? For example, some offer identity theft insurance, credit scoring simulators, access to a credit coach, and other features. Be sure to assess whether these services bring you value or are they just nice to have? The more features you choose the more it will likely impact the price you pay.
Cost
As mentioned, you should evaluate the features you need as it will likely affect the price you pay. Even the cheapest credit monitoring service can cost you on average $120 to $360 or more a year. If the additional features aren’t providing you with enough value, consider going for a service that is more simple.
Bottom Line
Your credit is an important tool in today’s world. It can affect your ability to access different credit products as well as affordable interest rates. It can also affect your insurance premiums, your ability to rent and even your job opportunities. As such, it is smart to keep on top of your credit and monitor it. Overall, credit monitoring is a great financial tool that can help you achieve your credit goals, get back on track after a rough patch, and even alert you to suspicious activity.
