Your credit score

Credit scores are rated on a scale, 300-900 and it’s almost always the case that the higher the number, the better. Your credit score is three-digit number thatcalculated based on many factors – and one that has power over your financial future. This magic number is a deciding factor on whether your bank or creditors will approve you for a loan, how much interest you’ll pay, and how much credit you receive. It will also decide whether you have low, easy repayment amount or if youll end up drowning in debt. For this reason, many Canadians search online every day for software’s and services that will tell them their credit score and one’s that will teach them ways improve it. There are several websites online that will tell you what your score is, but how they calculate your credit score is the question.  

The factors used to calculate credit score include payment history, length of credit history, credit card utilization and derogatory marks on a credit report. But many times, we find ourselves checking our score through one website, but on the next site our score is different. And sometimes the difference could be 100 credit points. But how come our credit score can differ from site to site and which one is correct? Chances are none of those scores match the one lender consult when deciding your financial fate.

My credit score is varied depending where I check my score? 

It was found among many Canadian users, that their credit score was inconsistent across free credit score software’s and comparing to credit bureau’s such as TransUnion & Equifax. Generally, free credit check software’s purchase your credit score from these credit bureaus, but many users have reported their credit score has varied across them all. Your credit score is calculated using consumer data at that credit bureau, and an algorithm used to score this data.  

Credit scores need credit data in order to provide you with a score. They need something upon which to base their calculations. Most credit scores use data compiled by one, or two national credit bureaus—TransUnion,and Equifax. A person’s credit report is a list of the data the bureau producing that report has compiled for that person. So, each reporting agency may have slightly different data and use a different scoring model, which could explain why our credit score differs.  

‘Soft’ vs. ‘hard’ credit check

It’s important to remember the difference between a credit score and a credit report the same way it’s vital to know the difference between a soft pull enquiry and a hard pull enquiry. Generally, a soft pull is free and will have no effect on your credit score. A hard pull is a more accurate credit check but will cost you credit points. Many credit check providers will refrain from performing multiple hard pull enquiries on your report due to its negative impacts. If you perform a lot of hard inquiries in a short period of time, it could lead lenders and credit card issuers to consider you a higher-risk consumer, as it may suggest you’re short on cash or preparing to rack up a lot of debt. 


How do I tell if my credit score is accurate? 

It’s extremely difficult to tell what scoring model your agency is using, and which score is the most accurate.  We can all admit that credit scoring is a complicated system, and one that may not seem very consistent. One way you can ensure your credit score is accurate, is to begin financial planning. You can revolve this around your credit report and its accuracy. 

According to Hoyes, the insolvency expert, it’s suggested instead of focusing on your credit score, a better approach to monitoring your financial status would be to shift attention to your credit report and ensuring its accuracy. It’s said that 79% of Canadian consumers have reported an error or omission on their credit report, which could be costing them crucial credit points. According CBC, your credit report is the file that details your whole financial situation. It lists bank accounts, credit cards, inquiries from lenders who have requested your report, bankruptcies, student loans, mortgages, whether you pay your credit card bill on time, and other debt.  

Hoyes also said that it’s important to focus on your financial health as a whole and not what’s best for your lenders. Paying off debt and saving your money can be better for your financial health and  over time improve your credit score. If you generally have good spending habits, you pay off your credit card and other debts and have no late payments, you should see a natural boost in your credit score. 


Marble Financial (CSE: MRBL; OTCQB: MRBLF). we are a group of forward-thinking financial technology experts that understand Canadian’s occasionally need help in achieving longer-term credit health. Through our industry-leading proprietary technology solutions Fast Track Loan, Score Up, and Credit Meds, we guide our customers back to mainstream credit 50% quicker than traditional methods. Since 2016, We are proud to have empowered thousands of Canadians to a positive financial future and continue to establish ourselves as a leader in financial wellness.