| What is a Credit? |
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Credit is described as; confidence in a purhaser's ability and intention to pay, displayed by entrusting
the buyer with goods or services without immediate payment.
There are many reporting agencies in Canada. These agencies take information from businesses that lend money
(banks, etc) on a monthly basis.They take a number of factors and produce a number called a beacon score. This
is the "snap shot" of your credit worthiness.
Things that efffect your beacon score are:
- How many times you get your credit checked - if you have too many checks, lender will think of you
as a "credit seeker".
- How much debt you have - if your credit is at or above the limit, this will really effect your
score.
- How have you paid in the past - any late or missed payments will show on the bureau for a very
long time, and will lower your beacon score.
Credit is the benchmark for every mortgage application. The better your credit, the more likely you will not only get
approved, but get the best rates and policies the lender has to offer. Remember, when you are asking for $200,000, the
lender needs to be comfortable that you will pay them back.
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| Tips to build credit rating |
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- Most importantly, pay your bills on time or early. Even if you can only make the minimum payment - make it.
- Only have your credit checked if you are sure about purchasing through that retailer. If you look at six different
places for a product, only get your credit checked at the place you are sure you will make that purchase.
- Keep those credit cards and lines of credit below the limit.
- Keep as little credit as you need. There is no benefit to having 7 credit cards if you only use 2.
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If you have any questions, please feel free to call me anytime.
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 Back to What is a Mortgage? Closing Costs  |
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