Why it’s important to keep tabs on your credit score

This post is sponsored by RBC.

Identity fraud and identity theft are growing problems in Canada. While scams are often triggered by a suspicious email or text, sudden changes to your credit report are an early sign your personal information has been compromised.

Why identity fraud in Canada makes credit score monitoring essential

Financial fraud continues to rise in Canada, and identity-based crimes are a major component. According to TransUnion, Canadian business leaders report losing an average of 7.2% of their equivalent revenue to fraud. Nearly one-third of fraud losses stem from scam or authorized fraud, while 26% are linked to synthetic identity fraud.

Fraudsters don’t stop at stealing information. They often use it to apply for credit, open new accounts, or take over existing ones. TransUnion reports a 21% increase in digital account takeover activity between the first half of 2024 and the first half of 2025, and a 141% increase since 2021. When this happens, your credit file is often one of the first places the activity appears — sometimes before you notice any other warning signs.

How changes to your credit score can signal identity theft

Your credit score usually changes slowly. Small ups and downs are normal, but sudden or unexplained changes are not.

If someone steals your identity, they may apply for credit or open accounts in your name. Those actions can trigger hard inquiries, new accounts, or higher balances — all of which can affect your credit score. That’s why a sudden drop, or even an unexpected jump, can be a red flag that deserves attention.

What to look for on your credit report when monitoring for fraud

When checking your credit report, it’s important to review the details, because fraud often shows up in the fine print.

Watch for:

• New credit cards, loans, or lines of credit you don’t recognize
• Hard inquiries you didn’t authorize
• Changes to your address, employer, or contact details
• Name variations you never use

It’s also smart to monitor both major credit bureaus — Equifax and TransUnion. Sometimes one bureau has information the other doesn’t, so checking both gives you a more complete picture of your credit activity.

How to check your credit score for free without hurting it

Checking your credit score at least once a month is a good baseline. If you’ve recently been targeted by a scam, impacted by a data breach, or shared personal information unintentionally, more frequent checks can help you stay ahead of potential issues. Many Canadians still worry that checking their credit score will lower it. The good news is that checking your own score uses a soft credit check, which does not impact your credit score at all.

You can access your credit report for free from both TransUnion and Equifax. Some banking products also include built-in tools that make monitoring easier.

For example, any RBC chequing account – including the the free RBC Signature No-Limit Banking Account – includes a built-in TransUnion CreditView Dashboard. This free tool lets you check your TransUnion credit score at any time, view key credit information, and track changes directly through your online or mobile banking. It also provides credit alerts when important updates occur, helping you spot potential fraudulent activity sooner.

What to do first if you spot suspicious credit activity

If you notice something on your credit report that doesn’t look right, act quickly. 

Start by:

• Contacting the lender or financial institution tied to the suspicious activity
• Notifying TransUnion and Equifax and ask for a fraud alert or credit freeze
• Reporting the incident to the Canadian Anti-Fraud Centre

You should also change passwords on your financial and email accounts and enable multifactor authentication wherever possible. If there are unauthorized credit card or bank account transactions, your bank can help investigate and guide next steps.

The bottom line

Credit monitoring tools are designed to watch your credit file for changes and alert you when something needs attention. For Canadians concerned about identity theft, they’re often worth using — especially when they’re included at no extra cost with everyday banking products. 

Regular credit score checks, careful monitoring of credit activity, and quick action when issues appear can help protect your identity. Tools like the TransUnion CreditView Dashboard built into the RBC Signature No-Limit Banking Account make it easier to stay informed (without affecting your score) and give you more control over your financial security.