Mortgage Minute: How Important is your Credit

Date Posted: August 11, 2020

One of the key aspects to securing financing to purchase a home is your credit score.  Your credit score can determine if you will be approved for credit, secure premium interest rates, or be declined for credit.

Some important Tips to keep in mind when it comes to establishing your credit, building your credit, and keeping your credit score in the range Lenders like to see include:

1. Spread out your balances among several credit facilities so you do not go over your credit limit on any one credit card
2. Accept all offers for increase limits as it demonstrates your credit worthiness to future creditors and creditors weigh your credit card balances to credit limits
3. Keep your credit facilities open. Even if you are not using the credit facility by leaving it open you create a history and potentially met minimum credit requirements
4. Pay disputed items on your credit bureau and then dispute them to avoid any derogatory information being registered by a credit company

Whether you are contemplating purchasing a home, looking to refinance your existing mortgage to consolidate debt, or simply switch your mortgage between lenders, your credit score is important for any credit requests.  Have questions - talk to your mortgage broker today!

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Contact your Mortgage Broker today for trusted advice