Turned down or not approved for the amount you need?
While most people know that they have a "credit rating," not all know their scores or how these scores are calculated. If your mortgage application is refused or approved for less than expected, there's an opportunity for me to help people understand the causes and how to best improve the score.
Credit scores range from 350 (low) to 850 (high), with 750 being the median. The numerical score is calculated on your previous payment history, your current indebtedness, your credit history length, number and frequency of new credit inquiries and, the types of credit you have. Two so-called "Beacon killers," are payments more than 30 days late (even small amounts) and maxed-out and over limit credit cards. Your detailed history also factors into an approval or refusal, this consists of your personal employment situation, banking information and specifics on other assets and liabilities.
Repairing bruised credit may not be easy, but over time it can be done. Here are three quickest strategies I recommend:
- Pay all bills on time - late payments hurt ratings
- Keep credit balances below 75% of the maximum
- Avoid applying for additional credit; too many applications in a short period signals financial difficulties and can be a red flag...
You should also review your credit history at least annually, it's free when requested in writing or by fax to either Equifax or Transunion. For more information, please feel free to call me at 604-790-7253.