7 Crucial Need-to-Know Facts Effecting Your Credit Score
Key information they don’t teach you in school!
There are two major companies who hold your credit reports are Equifax and TransUnion.
Credit scores range from 300-900 (you need at least a 680 to qualify for the “A-Lending” as these are CMHC and Genworth’s criteria).
Payment History is worth 35% of your total score. Be sure to make payments on time, the longer past due, the lower the score. Frequency is also a factor, the number of times you are late. This also applies to bankruptcies, liens and judgements.
Amounts Owed is worth 30% of your score. Are you maxed out on all your credit cards? If you don’t want to have this affecting you then be sure to use only 75% of your credit limit. If your limit is $5000 don’t use more than $3750 or it will affect your score.
Length of Credit History is worth 15% of your score. How long have you had your loan/credit card for? Have you been using your credit cards recently?
New Credit is worth 10% of your score. Make sure you do not apply for credit too often. Newly activated accounts may lower your score. Also, make sure you do NOT have your credit checked too many times. This will lower your score. They want to make sure you are not living beyond your means.
Types of Credit you use are worth 10% of your score. Watch out if you have several credit cards with high limits. This could mean that at anytime you can max these out and have financial hardship because unlike instalment loans, you do not need re-approval to reach the maximum limit. NOTE: If you are the person who likes paying with cash, make sure you use your credit card at least once a month to boost your credit score.
Beware The Cheapo, Zero Service Guys
Some companies will drop their rates below competition to the point that they have no money left to offer any service. Your mortgage is important. Avoid sloppy or last-minute paperwork. We’ve seen it, and trust us. You want this to go smoothly.
When you get a mortgage through us, we take care of everything. We ask for documents upfront, so it’s all ready for the big day. No last minute surprises.
Ready To Talk About It?
We’ll look at your unique situation and offer 2-3 options for you to think about. We work with only licensed and insured lenders. A smaller lender can offer a better mortgage than your big bank.
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We respond within 3 hours on weekdays. No obligation. You’re just shopping around.
Get help from Sterling Wong and his team of licensed
mortgage specialists…Finance the Smart Way!
Toll-Free: 855.241.RATE (7283)
416.993.7653 ext.3
Apply@SearchMortgage.ca
Search Mortgage Corp.
50 Village Centre Pl. Suite 100
Mississauga, Ontario L4Z 1V9
Br#12652 : Lic#M08008042