Introducing BMO Credit Coach – the no-fee, quick way to check your credit score

Your credit score is a calculation based on several credit score factors, like regularly paying your bills on time. When combined, these factors give you your score that shows lenders how experienced you are with credit products and how well you manage them. Your credit score is only one piece of information companies look at when deciding to offer or approve credit products. TransUnion uses a scale from 300-900, and considers 900 to be a perfect score, but each credit bureau calculates scores with their own proprietary formula.

Many people start their credit journey by applying for a credit card, but you can build credit by paying your bills on time, applying for different types of credit, checking your credit report for errors, and applying to raise your credit limit.

No. Credit Coach gives you easy access to your free TransUnion^® credit report information and is considered a soft inquiry, which will not affect your credit score. 

Regularly monitoring your credit score not only gives you an up-to-date snapshot of your credit health but it can help you understand what steps might improve your credit score. Spotting trends in your credit behaviour can help empower you to make the right decisions for your credit use, but checking in regularly can also help you spot potentially fraudulent activity. Lastly, turning on Credit Coach alerts can help you stay on top of important updates as they’re reported from TransUnion. 

Typically, the higher the score the better. Each lender decides which credit score range it considers a good or poor credit risk. The lender is your best source of information about how your credit score relates to their final credit decision. Your credit score is only one component of the information that lenders use to evaluate credit risks. 

What are some more ways to improve my credit score? 

Here are four more ways to improve your credit score: 

1. Build your credit slowly: Don’t apply for different credit types all at once, this could hurt your credit score as you will have a lot of hard credit checks on your account. Start with credit you can manage for a while to build your payment history, before applying for new credit. 
2. Don’t cancel all your cards at once: This may lead to a drop in your credit score, especially if it’s multiple cards. How long your accounts have been open affects your credit score. 
3. Don’t borrow more than what you owe: This can hurt your credit score, always make sure you have borrowing room within your credit limit. It also shows future potential credit lenders that you’re responsible with your credit. 
4. Avoid maxing out your credit: When you start building credit, start with making light purchases. Maintaining a low balance that can be paid off can help improve your credit score. 

What other sources can affect your credit score? 

Explore more sources that contribute to your credit score here.

What affects my credit score the most? 

Your payment history is typically the most important aspect of your credit score. It shows how you've managed your finances. Your credit history is also very important, as it demonstrates how long you've been managing your accounts, when you made your last payments, and any recent charges. 

What are credit score factors? 

Credit score factors are used to calculate credit scores and affect everyone’s score differently. Each factor has a different impact on your score, but the main factors are: 

• Payment history – Paying your bills on time, paying off your full balance, and when you make payments are just a few of the ways payment history affects your score. 
• Credit utilization – Is the total amount of credit you have available compared to the balances you carry and how those balances are distributed across things like your credit card, loans, or lines of credit. 
• Oldest account – This gives lenders an idea of how long you’ve been using credit products. 
• Recent inquiries – There are two types of credit inquiries: 

• • Hard inquiries affect your score and appear on your report after a full credit check, like when you apply for a loan. 
  • Soft inquiries do not affect your score and can appear on your report if a company is trying to verify your identity or that you have credit history. 

• Account mix – Having different types of credit accounts adds diversity to your profile. 
• Derogatory marks – Derogatory marks are public records that may affect your credit score. Marks can include: Tax liens, wage garnishment, foreclosures and child support payments. 

What is the difference between a soft and a hard credit check? 

Pulling your credit report is an example of a soft credit check that doesn’t impact your score. A soft credit check (also called “soft inquiry”) does not impact your credit score in any way. Credit Coach is a soft check and will not affect your credit score. A telephone company you’ve signed up with might do a hard credit check (also called “hard inquiry”)  to see if you’re able to keep up with bill payments. A hard credit check will have an impact to your credit score, but if you aren’t continually applying for new credit or loans, the impact will lessen over time.