TIPS TO BOOST YOUR CREDIT SCORE
Are you new to having credit? Re-building your credit after some missteps? Looking to improve your credit score so you can get the best mortgage broker rates on the market? No matter the circumstance, there are 5 key elements that determine your numerical credit score, which ranges from 300-900.
Our team of top mortgage brokers, backed by finance experts, have put together the best tips on how to build your credit the fastest. There are 5 key elements that go into determining your credit score
You can seek a full credit report from Equifax or TransUnion, through their easy to use online portals. Alternatively, if you are in the market for a mortgage, during the application process, your mortgage agent will access your credit report and discuss your credit details at that time. To start your mortgage approval process, connect with our team of licensed Toronto mortgage brokers today.
Payment History
Approximately 35% of your credit rating is centred around your payment history. This includes credit card, loan, bill and mortgage payments etc. Late payments stay on your report for seven years, so avoid them at all costs. You can help mend your score by actively paying back your debt – this focus alone can have a huge impact on your credit score.
Length of Credit History
That small limit credit card you have in your drawer that you opened in your early 20’s, but never use – Keep it! Having years of credit shows your mortgage advisor that you have experience managing and paying off debt.
Credit Utilization
By using a low percentage of your available credit and paying it back in full each month positively impacts your overall credit rating. Consider this; a $4,000 balance on a $5,000 credit card is worse in terms of utilization than a $12,000 balance on a $25,000 credit card or loan.
New Credit
Putting in applications for a lot of new credit or financing in a short time frame will negatively impact your credit score. These new credit enquiries essentially affect your length of credit history, which has a negative impact on your credit score.
Types of Credit in Use
Hear us out… having more than one type of credit account on your file, when payments are made on time and in good standing, can increase your credit rating. Installment payments and revolving credit as a combination can help to increase your credit score.
Curious to know what your credit rating is?
You can seek a full credit report from Equifax or TransUnion, through their easy to use online portals. Alternatively, if you are in the market for a mortgage, during the application process, your mortgage agent will access your credit report and discuss your credit details at that time. To start your mortgage approval process, connect with our team of licensed Toronto mortgage brokers today.
Types of Credit in Use
Hear us out… having more than one type of credit account on your file, when payments are made on time and in good standing, can increase your credit rating. Installment payments and revolving credit as a combination can help to increase your credit score.
If your credit is less than stellar, it doesn’t mean you cannot get approved for a mortgage. Connect with our specialized team of Toronto mortgage advisors who know the ins and outs of unique financial circumstances, so that they can prepare you for the strongest mortgage application when the time to apply is right.
Connect with a Bad Credit Mortgage Broker
Re-building your credit? Our team of local mortgage brokers get it, life happens and sometimes that takes a toll on your credit bureau in addition to other things. Get started today with the education and support of a trusted certified mortgage advisor.
Connect with a Self-Employed Mortgage Broker
Though the application process may be a little more in-depth, we believe that being a business owner shouldn’t prevent you from having the opportunity to invest in real estate in the Toronto area and beyond.
Connect with a First Time Home Buyer Mortgage Broker
Starting on the journey to purchase your first home is such an exciting time! If you find yourself with a long list of questions, don’t worry, our team of Toronto mortgage professionals are here to help!