RAISING YOUR CREDIT SCORE

Your credit/Beacon score, just like your final grade in school, is made up of several factors, each weighted differently. The range is from 300 - 850, with 650+ being a cut-off point, as it were, for many lenders. We need a credit score to placate those who would give us credit – car dealerships, banks, other credit card companies and of course, mortgage loan providers! In fact, your beacon score is the most important factor lenders look at when qualifying you for a mortgage.
So, prepare for your purchase by investigating your own credit score.

10% - Your mix of loans

Procure two credit cards for yourself, with a credit limit of at least $1500.

10% Your new credit

Too many hits on your credit report can lower the score. If home shopping, for instance, either search all the lenders within one week, or use a mortgage broker. Mortgage brokers check your beacon score once and use that in their conversations with many lenders.

15% The length of your credit history

Banks like 2 years! The longer your history the better, as your spending patterns will be more transparent to prospective lenders.

30% How much you owe

Banks like to see your credit card and credit line balances below 50% of the credit limit

35% Your payment history

Regularly paying your bills on time is the most important factor in establishing your credit rating. Allow the computer to bear the stress of remembering to pay bills on time – set up an auto-debit!

warmest regards,
LcK
416.809.6245
lindsay@torontorealestatetoday.com