Credit TIPS

Credit Tips for buying a home

‘T’otally ‘I’n touch with your ‘P’ersonal ‘S’pending

  • Pay extra on your debts if you are in the position to do so. For example, by paying an extra $50 a month more on any bill is $600 more yearly than you would have paid otherwise.
  • Never go over your assigned credit limit – and leave extra room for the interest that will be charged at the end of the month.
  • Try keeping credit card balances from 4% to 12%. High balances cause your Credit Score to go down, while low balances increase your score. You must continue to use your credit card wisely to achieve the best results.
  • Pay off (or make arrangements to pay off) any outstanding debts that you have in collections immediately. The sooner you take care of your financial problems, the sooner you can improve your score.
  • If you have bad credit, obtain a secure credit card to begin re-establishing your credit immediately. You can usually obtain one through your financial institution.
  • The most advisable credit card purchases are the ones that can be paid the same month. Through purchasing and paying on time constantly, your Credit Score will slowly increase. Some people have been known to make a purchase, and then immediately pay On-line at home or through their financial institution before they arrive home. It is a great habit.
  • Do not shop for credit. A very common mistake is applying at several different dealerships when shopping for a car, boat, RV, boat, etc. Do not provide your financial information and give consent if you are not 100% sure about your purchase.

Factors That Do Not Affect Your Score

  • Where you live – where you are located in Canada does not affect your Credit Score.
  • Interest Rates – the rate of interest being charged on your financial obligations does not affect your Credit Score.
  • Social support – social assistance such as childcare or disability income are not tracked by credit agencies and does not affect your Credit Score.
  • Your inquires – if you personally check your Credit Report, it does not effect your credit score. Any other checks will generally have an effect on your Credit Report.
  • Age – your age does not have an effect on your score.
  • Income – Income is very important to mortgage lenders as it is used to determine affordability, but it does not effect your Credit Report Check your Credit Score HERE”

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