Why You Should Monitor Your Credit Score in Canada

Your credit score just dropped 50 points overnight. You haven't missed a payment or maxed out a card. What's going on? In Canada, sudden credit score changes are often the first warning sign that someone's using your identity to open accounts or rack up debt in your name.

Why Credit Score Monitoring Matters More Than Ever

Identity fraud isn't slowing down in Canada — it's getting worse. According to TransUnion, Canadian businesses lose about 7.2% of their revenue to fraud, with nearly a third coming from scams and another 26% from synthetic identity fraud.

Here's what's alarming: digital account takeovers jumped 21% between early 2024 and early 2025. Since 2021, they're up 141%. Fraudsters aren't just stealing your info — they're using it to apply for credit cards, loans, and lines of credit before you even realize what's happening.

Your credit file often shows this activity before your bank account does. That's why regular credit score monitoring has become essential, not optional.

How Credit Score Changes Signal Identity Theft

Credit scores typically move slowly. You'll see small changes month to month based on your payment history and credit use. But sudden swings? That's different.

When someone steals your identity and opens an account in your name, it triggers a hard inquiry on your credit report. New accounts appear. Balances increase. Your score can drop fast — or sometimes even rise unexpectedly if fraudsters are building credit before maxing things out.

Either way, unexplained changes deserve your immediate attention. They're often the only early warning you'll get.

What to Look for When You Check Your Credit Report

The details matter when you're reviewing your credit report. Fraud hides in the fine print, so you can't just glance at your score and move on.

Watch for credit cards or loans you don't recognize. Check for hard inquiries you didn't authorize — these appear when someone applies for credit using your information. Look for changes to your address, employer, or phone number that you didn't make.

Even small things matter. Name variations you've never used can signal fraud. Check both Equifax and TransUnion — sometimes one bureau has information the other doesn't.

How to Check Your Credit Score Without Lowering It

Many Canadians still think checking their credit score will hurt it. That's not true. When you check your own score, it's called a soft inquiry. It doesn't affect your credit at all.

You should check your credit score at least monthly. If you've recently clicked a suspicious link, been affected by a data breach, or shared personal information by mistake, check more often.

You can get your credit report free from both TransUnion and Equifax directly. Some banks also include credit monitoring tools with their accounts — like the TransUnion CreditView Dashboard that comes with any RBC chequing account, including their free Signature No-Limit Banking Account. These built-in tools let you check your score anytime and send alerts when changes happen.

What to Do If You Spot Suspicious Activity

Found something on your credit report that doesn't look right? Don't wait.

Contact the lender tied to the suspicious account immediately. Then notify both TransUnion and Equifax and request a fraud alert or credit freeze. Report what happened to the Canadian Anti-Fraud Centre.

Change your passwords — especially for banking and email accounts. Turn on two-factor authentication everywhere you can. If there are unauthorized transactions, your bank can investigate and help you figure out next steps.

The faster you act, the less damage identity thieves can do. Credit monitoring won't prevent fraud entirely, but it gives you the early warning you need to shut things down before they spiral.