Credit Improvement and Why It’s Important
As a veteran mortgage broker, I know that having a good credit score is essential to getting the best rates and mortgage terms. A perfect credit score is 900 and the average Canadian credit score is 680. If you’re looking to improve your credit score in Canada, here are some tips to keep in mind:
- Check your credit report: Start by getting a copy of your credit report from one of Canada’s two credit bureaus, Equifax or TransUnion. Review the report carefully to make sure all the information is accurate.
- Pay your bills on time: Payment history is one of the most important factors in determining your credit score. Make sure to pay all your bills on time. Be it Credit cards personal loans, mortgages they all matter. approximately 30 percent of your score is based on how you pay.
- Keep your credit card balances low: High credit card balances can have a negative impact on your credit score, so try to keep your balances low. 20% of your credit limit or less will yield you the highest scores. If you exceed your limit on your cards your score will come crashing down. Never exceed limit.
- Don’t close old credit card accounts: Length of credit history is another factor that affects your credit score, so it’s generally best not to close old credit card accounts. Ideally you want four credit facilities that have been on file for six years.
- Limit new credit applications: Every time you apply for new credit, it results in a hard inquiry on your credit report, which can temporarily lower your credit score. Try to limit the number of new credit applications you make again you should really keep it a four. Example one visa one master card, car loan and mortgage
- Seek help if needed: If you’re having trouble paying your bills or managing your debts, don’t be afraid to seek help. There are organizations and agencies in Canada that can help you improve your financial situation and get back on track.
By following these tips, you can take control of your credit score and work towards a better financial future. As a mortgage broker, I can also offer advice and guidance on the best ways to improve your credit score and get the best mortgage terms and rates.
A bad credit rating can be gut-wrenching and humiliating … We have options!
“Life is what happens when you’re busy making other plans.” … And sometimes things get out of control and bad things happen to good people. We see all kinds of credit ratings every day and were not here to judge were here to help. We have the strategies to help improve your score its simple a matter of time.
You may be surprised to know that you can still obtain a mortgage. Whether you’ve had a bankruptcy, or your credit is only slightly bruised, we now have traditional A lenders, Alternative lenders, MIC’s and Privates, Rest assured, we are fully equipped to manage all aspects of the process with care and precision.
As mortgage professionals, we have access to non-traditional lenders who offer financing solutions to individuals who have some credit challenges that cannot be addressed by the major financial institutions. Together we can quickly assess your situation and decide on the best way to move forward. The most detrimental course of action would be to take no action at all. Remember its stays on you file for a full six years.
So don’t let a bad credit rating keep you from pursuing your dreams of homeownership. Whether you’re looking to buy your first home, upgrade to a bigger property, or refinance your existing mortgage, we can help you find the right solution for your needs. It’s not a matter of if you can buy but more a matter of when.
Our goal is to empower you with the knowledge and resources you need to take control of your finances and improve your credit rating. We understand that every situation is unique, and that’s why we take a personalized approach to each and every client. Our team of experts will work with you every step of the way, from assessing your credit situation to finding the right lender and mortgage product for you.
So don’t hesitate. If you’re ready to start your journey to a better credit rating and a better financial future, get in touch with us today. We’re here to help.
5 reasons why you should improve your credit:
- Better Loan and Mortgage Rates: Improving your credit score can have a direct impact on the interest rates you receive on loans and mortgages. A higher credit score can result in lower interest rates, which can save you thousands of dollars in interest payments over the life of your loan or mortgage.
- Increased Borrowing Power: A higher credit score can also increase your borrowing power, allowing you to access larger loans and mortgages with more favorable terms and conditions.
- More Loan Options: Improving your credit score can also open up more loan options for you. With a better credit score, you may be eligible for conventional loans from banks and other financial institutions, which often offer better interest rates and terms than alternative lending options.
- Easier Approval: A good credit score can also make it easier for you to get approved for loans and credit cards. Lenders and creditors are more likely to approve applicants with good credit, making it easier for you to access the financing you need.
- Improved Financial Flexibility: A good credit score can also give you more financial flexibility. With a better credit score, you may be able to obtain new credit cards with better rewards programs, access loans with more favorable terms, and take advantage of special financing offers. This can help you achieve your financial goals more quickly and with greater ease.
In conclusion, improving your credit score can have a number of significant benefits, including lower interest rates, increased borrowing power, more loan options, easier approval, and improved financial flexibility. By taking steps to improve your credit score, you can take control of your financial future and put yourself on the path to financial stability and success.
If you’re ready to take control of your finances and improve your credit rating, contacting a mortgage broker is a great first step.
Kindly contact us today, as we are readily available to assist you with any needs or inquiries you may have.