Credit Keeper Review: How Does Capital One’s Credit Monitoring Stack Up?

Credit Keeper Overview

Credit Keeper started as CreditWise, a service that originated in the USA. Capital One launched CreditWise in 2014. They sought to empower consumers with free, comprehensive access to their credit score and the critical details that affect it. This innovative tool was geared towards educating users about the importance of credit health. It equips them with resources to improve their scores and fosters financial literacy.

This tool was brought to Canada in 2017 under the name of Credit Keeper, maintaining its goal of providing a more holistic view of an individual’s credit standing. Credit Keeper now operates within Canada (excluding Quebec). The service is available to credit card users, regardless of whether they are Capital One customers. However, Credit Keeper only applies to financial institutions using TransUnion.

Credit Keeper will have trouble pulling any credit history to generate a score if your financial institution solely uses Equifax. Below is a table listing where different financial institutions pull their credit information. Credit Keeper might not have enough information to create an account if your financial institution does not use TransUnion. 

How does Credit Keeper perform a Credit Check (Credit Pull)

Credit Keeper by Capital One typically performs a soft inquiry (soft pull) on your credit report when you use its services. Soft inquiries do not impact your credit score and are typically used for informational purposes, such as credit monitoring and checking your own credit score.

A Hard Inquiry (Hard Pull):

A hard inquiry, also known as a hard pull, occurs when a lender or financial institution checks your credit report as part of their evaluation for a credit application. Hard inquiries are typically associated with actions such as applying for a new credit card, a loan (e.g., auto loan or mortgage), or a line of credit. Each hard inquiry can negatively impact your credit score, causing it to drop a few points. Hard inquiries stay on your credit report for about two years.

Soft Inquiry (Soft Pull):

A soft inquiry, or a soft check, happens when you or a third party checks your credit report for non-credit-related purposes. These inquiries do not affect your credit score and are typically used for informational or monitoring purposes. Soft inquiries include checking your credit report, pre-qualified credit card offers, background checks by employers, and inquiries by existing creditors for account reviews. Credit Keeper and similar credit monitoring services generally use soft pulls.

How to check your credit score through Credit Keeper?

To use Credit Keeper, simply create an account and enter your personal information. It will then generate several security questions. These could include past addresses, financial institutions you use, and your past employment records.  

Getting Your Credit Score

From there, you will be redirected to a page with your estimated score by TransUnion. It will place you in one of the five tiers. This ranges from Poor, Fair, Good, Very Good, and Excellent, with an associated credit score. 

Breakdown of Your Credit Score

Below is a score breakdown and lists the key factors determining your credit score. It breaks it down into high-impact and low-impact factors on your credit score. High-impact factors include paying your bills on time, credit utilization rate (available credit), and the length of your credit history (oldest account). Low-impact factors include credit applications in the last two years, your credit amount, and credit inquiries on your report. It will try to suggest improving each factor to boost your credit score. 

Comparing Three Credit Keeper Alternatives 

Credit Keeper has made a notable impact in the landscape of credit monitoring services, offering users a streamlined and informative way to monitor their credit scores in Canada. However, it’s essential to explore how Credit Keeper measures up against its competitors to make an informed decision about your credit monitoring needs. In this section, we’ll take a comprehensive look at Credit Keeper’s features and benefits compared to some popular alternatives in the market.

1. Borrowell

Borrowell stands out as a prominent Canadian FinTech company, offering a range of essential financial services that set it apart. Positioned at the forefront of credit management, Borrowell provides users with valuable tools. These tools include complimentary credit score monitoring, comprehensive credit reports, and carefully tailored recommendations for financial products.

This dynamic platform grants users unrestricted access to their Equifax credit score and report, making it effortless to monitor significant changes and unravel the complex factors that impact their creditworthiness. Beyond these crucial features, Borrowell assists with personalized financial solutions. This includes personalized loans and mortgages thoughtfully designed to align with each individual’s unique credit profile. 

In essence, Borrowell functions as an all-encompassing financial companion. It empowers users with insights into their credit and the resources to realize their financial dreams through a range of meticulously curated products and services.

2. Credit Karma

Credit Karma is a popular online platform introduced in 2007. It offers users free access to credit scores, reports, and financial tools. It provides a comprehensive snapshot of an individual’s credit health, allowing them to monitor changes in their credit scores over time and receive alerts about potential fraudulent activity. Users can also explore personalized recommendations for credit cards, loans, and other financial products based on their credit profiles. 

Credit Karma’s user-friendly interface and helpful resources, such as credit score simulators and financial calculators, empower individuals to make informed financial decisions. The platform generates revenue by offering targeted advertising and product recommendations to users. With its mission to provide accessible credit information and financial education, Credit Karma has become a valuable tool for millions of consumers striving to manage and improve their credit standing.

3. ClearScore

ClearScore is an independent online platform that provides individuals access to their credit scores and reports, empowering them to understand better and manage their financial health. Introduced in July 2015, ClearScore allows users to monitor changes in their Equifax credit score and review their credit reports for free. Clearscore was brought to Canada in November 2022. 

By offering insights into credit factors, personalized recommendations, and educational resources, ClearScore aims to help users make informed financial decisions and take control of their credit profiles. The platform’s user-friendly interface and emphasis on transparency have contributed to its popularity among individuals seeking to enhance their credit awareness and overall financial well-being.

Why Check Your Credit Report

Credit reports are important records that provide detailed information about your credit activities. These include an individual’s account history, loan applications, payment history, and public records. Lenders use it to evaluate an applicant’s financial responsibility. Based on this evaluation, they decide whether to approve or reject a loan application. Regularly checking your credit reports is crucial. It helps ensure accuracy and allows for timely resolution of any potential discrepancies.

Regularly checking your credit report allows you to remain vigilant against identity theft and other forms of financial fraud. It also provides you with an opportunity to improve your credit score. Credit monitoring can help identify suspicious activities, such as unauthorized account openings or inaccurate information on the report. It can also detect incorrect delinquencies reported.

Moreover, it can alert you when a creditor checks your credit report. This enables you to take appropriate action to protect your personal data and finances. Credit reports also help individuals stay on top of their financial health and make sound decisions about their money management. Regularly monitoring credit reports is essential for good credit standing and financial stability.

How to Improve Your Credit Score

Your credit score is crucial to your financial health and can impact your ability to secure loans, mortgages, and favourable interest rates. Whether you’re looking to buy a home, get a car loan, or simply improve your financial standing, a higher credit score can open doors to better opportunities. There are several actionable tips to help you improve your credit score and set yourself on a path to financial success.

Check Your Credit Report Regularly

Start by obtaining a copy of your credit report from all three major credit bureaus—Equifax, Experian, and TransUnion. Review the reports for errors, inaccuracies, or fraudulent activity and dispute any discrepancies.

Pay Bills On Time

Timely bill payments are among the most significant factors influencing your credit score. Set up reminders or automatic payments to ensure you never miss a due date.

Reduce Credit Card Balances

Aim to keep your credit card balances well below their limits. High credit utilization can negatively impact your score, so work on paying down your balances.

Diversify Your Credit Mix

A mix of credit types—such as credit cards, mortgages, and installment loans—can positively influence your credit score. However, only take on new credit when necessary and ensure responsible management.

Avoid Opening Too Many New Accounts

Opening multiple new accounts in a short period can raise concerns for lenders. It may also result in inquiries on your credit report, which can temporarily lower your score.

Don’t Close Old Accounts

Length of credit history matters, so avoid closing old accounts, even if you don’t use them frequently. Closing accounts can shorten your credit history and potentially lower your score.

Use Secured Credit Cards

If you’re rebuilding credit, consider getting a secured credit card. These cards require a deposit as collateral and can be a valuable tool for improving your credit over time. Improving your credit score is an ongoing journey that demands commitment and well-considered choices. Employing these insights will empower you to remain vigilant and enhance your creditworthiness. There is a wide spectrum of good options for individuals searching for the best credit cards for bad credit.

Credit Keeper: Bottom Line

Given the current landscape, where credit health is indispensable in our financial lives, it’s prudent to consider services like Capital One’s Credit Keeper. But is it worth it?

In terms of advantages, Capital One’s Credit Keeper service is free for cardholders, a benefit when compared to some rivals that charge additional fees for similar services. The accessibility of the service online and through mobile apps is another positive, allowing users to monitor their credit health at their convenience. Detailed credit reports, alongside insights into factors affecting credit scores, equip users with the necessary knowledge to make informed financial decisions.

However, it’s important to consider some potential downsides. It only provides credit reports from TransUnion, limiting the breadth of information available. Users seeking a comprehensive overview of their credit health across all major credit bureaus might be disappointed.

In conclusion, Capital One’s Credit Keeper can be a valuable tool for those keen on maintaining and improving their credit health, especially for current Capital One cardholders. But for those seeking a more comprehensive credit assessment, it may be worth considering other options available in the market.

FAQs About Credit Keeper