Your credit score largely affects what kind of rates you will receive on your mortgage.
Therefore, it is important that you familiarize yourself with your current score so you have a better understanding of what type of mortgage you will qualify for. Your credit score not only determines how high of an interest rate you will receive, but it also dictates what kind of loan you will be able to apply for since each loan has a different requirement.
To help, Gert Martens with Dominion Lending Centres has made a list of 5 tips to help raise your credit score.
Tip #1: Make Sure Your Credit Report Is Correct
It is not uncommon for credit card companies to make a mistake on someone’s account. This means you should review your financial record to make sure all the information listed is correct. If there is an error on your record, fixing this problem could help improve your score.
Tip #2: Do Not Miss Payment Due Dates
If you skip a payment or have multiple late payments pending, your credit score will be negatively affected. Write on your calendar when these payments are due, or set up a reminder on your cell phone so you know exactly when you need to make your payments. Being organized and paying off late payments can help increase your credit score.
Tip #3: Pay Off Debt
Being in a lot of debt can hurt your credit score, so the more you pay towards your debt, the more your credit report will be improved. You can consolidate your debt by refinancing your mortgage. This can be done by accessing the equity in your home and using that money to pay off any outstanding balances you have. For more information, contact your local broker at 780-933-0109.
Tip #4: Get A Credit Card
If you do not have a credit card, your score could be very low and be affecting your ability to make big purchases. Getting a credit card can improve your credit if you stay on top of the payments and do not spend more than you can afford.
Tip #5: Avoid Retail Credit Cards
If you are out shopping and a retail store says you will receive exclusive deals if you sign up for their credit card, do not accept this deal. Regardless if you get approved or not, filling out this application can cause your credit score to drop. If you want or need this type of credit card, avoid applying for one until you have already been approved for a home loan.
For more information on how to raise your credit score, please contact Gert Martens, your local mortgage broker, at 780-933-0109.