Several people are aware of the importance of credit scores but don’t know why it’s important or how to keep track of it. In fact, several people don’t even know their scores. Luckily, now every Canadian can check their credit score with the help of credit monitoring apps.
When it comes to calculating credit scores, there are several factors involved. You will need to track your credit, number of credit cards and how much amount you require. With so many values involved, it’s easy for you to forget a few things and might end up with an incorrect credit score. The worst part, you will have no idea whether your score is increasing or decreasing due to your daily activities.
In such scenarios, credit monitoring apps are an ideal solution. They help you regularly check your scores and suggest ways to improve a low score. Once you have an exact idea of your credit scores, you can apply for any loan, and that too at a lower interest rate.
Here are a few suggestions on which apps to use for the best credit monitoring in Canada.
The Best Apps for Credit Monitoring
If you’re planning to apply for a home loan or a business loan, you will need to have a good credit score. The average score range is from 300 to 900 and the higher the score you have, the brighter the chances of getting loan approvals from banks and private lenders. Well, to make your job easier, there are many apps but the best ones are:
- Borrowell: You could trust Borrowell to manage your credit score without any glitches. From providing detailed reports to giving a complete picture of your financial situation, you could use the app for almost everything. It even gives recommendations on improving your score. For individuals who wish to keep their details secure, the app is perfect with its high-level security system. So, an individual can get it all on one platform.
- Credit Karma: Individuals can also use Credit Karma for credit maintenance. It’s free and flexible, and you don’t have to share personal information. Thus, securing your data and identity. Most importantly, the application provides alerts for any new updates regarding your credit score.
- Mogo: You must give a chance to Mogo, if you’re into credit maintenance without compromising security. The app is ideal for protecting your information while regularly updating your credit score. Nothing would be better than Mogo because you get help with credit maintenance and have the chance to invest in Bitcoins. So, people get tips on saving, budgeting and investing on one platform.
- TransUnion: It’s an ideal app for getting regular updates about credit scores. The system is efficient and displays detailed reports about your credit history. All you need to do is install the app and get free credit scores at any hour of the day.
These apps offer guidance without charging you any fee. Checking your scores is much more viable. If your score goes below a value, you could take steps to improve it. With the help of monitoring apps, checking discrepancies is not an issue.
Alternative Options for Credit Checking
No doubt, credit score checking is necessary, especially if you want to apply for a loan. One way of doing it is with the help of credit monitoring apps. However, you could also visit a credit bureau to get information about your credit score. One of the most reputable credit bureaus in Canada is Equifax. It allows you to get credit score reports, any time you submit a request and even has an automated service for people who subscribe to their mailing list. It will cost a small amount every month but at least you will be aware of your score.
Even banks provide information to people about their credit scores. If you have a banking plan or have applied for a credit card through a bank, they provide you with credit checking services. These are some common ways of getting knowledge of individual credit scores.
What Affects Credit Score and How to Improve a Low Score?
Your credit score is affected by several things including your missed payments, number of credit inquiries, utilization ratio, and credit history. Of course, this number isn’t a static value and continuously changes. It could be low at one point and higher in the next. For example, people with a high credit utilization or those who fail to make payments for their previous loans have a lower score. However, if they start paying bills on time or lower their credit use, their scores can improve. So, your spending habits alter your score.
If you wish to improve your current score, start making timely payments. Nearly 35% of your score is determined through this factor. Whether it’s a credit card bill or a utility bill, pay it before the due date. At least pay the minimum amount if you can’t arrange the full amount. Further, lower your utilization ratio. Anyone planning to close a credit card should make sure they don’t get rid of cards that have been longer in use. It’s better to keep your oldest account/card active as it preserves your credit history.
When you act responsibly and regularly check your credit scores, they remain maintained. A score below 600 is not considered for loan applications. Thus, keep it as high as possible. In case, your score drops severely without any reason, thoroughly review everything and file a complaint.
To do all these things, you need to remain updated about your scores, and these monitoring apps provide detailed insights.
With BHM Financial Group, you can forget about every credit-related problem. We offer short-term and long-term loans at affordable rates to everyone, including those with a below-average credit score. You could even get help with your credit scores through our professionals. BHM Financial helps everyone in need, so apply online and get the necessary funds today. You won’t have to wait for approvals. We manage the process in days instead of weeks and months.