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Free Credit Report Canada

By: EconomyWatch Date: 25 August 2009

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The good news for Canadians is that they can get a free credit report-Canada any number of times in a year. They only need to write for a copy and request it through mail. Requesting for a credit report through other media is subject to a fee.

However, one should know that every time you send a request for a free credit report, it is recorded under the inquiries section. There are two ways to a request for a credit report: hard inquiry and soft inquiry.

Free Credit Report: Hard Inquiry and Soft Inquiry

There is a fundamental difference between hard inquiry and soft inquiry.

Hard inquiry or hard pull is an inquiry that requests for one’s credit history with all the details. It is generally done in the case of loans, credit cards or other forms of borrowings. It pulls out all the financial information available and is a mandatory exercise for banks when checking the credit history of people immigrating to Canada. Hard inquires have an effect on the credit ratings and therefore should not be undertaken too many in a year. Many hard inquiries show the number of banks and lending institutions that have contacted the credit agencies for your past credit records.

A soft inquiry, on the other hand, is an inquiry that is made by the individuals or by an organisation to check the basic criteria for different financial options, such as pre approved loans or credit cards. This type of inquiry gives a simple credit score rather than historical information. Soft inquiries can also be made by individuals, banks or financial institutes looking to verify personal details. Soft inquiries do not have any effect on the credit report. However, because of not being properly catalogued, they may not tell you about the individuals or organisations that did a soft inquiry on your credit history.

To apply for a free copy of a credit report in Canada, you need to write to the credit agencies, Equifax and TransUnion. They are known to reply within 30 days. However, for urgent reasons, one can log in to their websites and see the report online for a premium.

Besides being a good way of identifying your credit history, identity theft and other frauds can be kept at bay through these free credit reports as well.