How to Manage Your Credit Report, and Have the Best Score Possible?

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How to Manage Your Credit Report, and Have the Best Score Possible?

So what are the best tips for having a good credit report?

The credit file is, in part, analyzed to obtain a mortgage but, also, it is necessary for any financing whatever it is. A homeowner for a rental or even sometimes an employer will always ask to evaluate your mortgage record.

Our credit file follows us everywhere.

Indeed, it is the portrait of our management capacity, so it is better to pay special attention!

How it works?

Equifax and TransUnion are the 2 credit reporting agencies. The score ranges from 300 to 900, and the score from 1 to 9.

A good score is a sign of good financial health and indicates that you are a trusted person who lives up to its commitments.

When all accounts are paid in time the odds are at 1.
But, at each delay, the odds rise by 1 point (R2, R3) the maximum being then 5 for 120 days late. The odds 9 are assigned to collectible accounts, consumer proposal and bankruptcy.

The information of a credit file remains visible for 6 to 7 years.

Therefore, a misstep will follow you for a long time. Remember that we will only notice late payments, so be very attentive and respectful of your commitments.

Some tips :

  • Do not exceed the equivalent of the monthly salary as the total credit limit
  • Use up to 60% of the limit on your credit card, never again.
  • Hurry to pay off debts that have a high-interest rate.
  • Make a monthly budget, plan your expenses.
  • Do not make frequent requests for credit because it alerts financial institutions and worries them. When you do business with a mortgage broker, only one application will be placed on the credit file. So, if you make 5 requests to 5 banks, the score will be heavily impacted! Think about it.
  • Take out your credit report once a year to check it because Equifax and TransUnion are not foolproof and there are often errors.
    the request is free (see the Equifax and Transunion websites)
  • Pay attention and find out about the person for whom you are borrowing.
    if the latter did not pay or did not respect its commitments, you could have a delay in your credit report.
  • Think about saving!

Credit rating sites

  • The first site uses Transunion, it is free and available in French
  • The second site is English-speaking, free and uses Equifax

This is the CPR 2 credit score that will be used.

Our mortgage brokers are able to give you the best practices

But, also, they will allow to make the necessary changes to increase your credit score, or correct a score that could be unfavorable.

Mortgage pre-qualification is often the right time to take stock and take the time. To be ready, during your future purchase, present yourself with the highest possible score.

Do not hesitate to ask us for advice, whether your credit has been established for a long time, or whether you are a newcomer to Canada.

We know best practices and can guide you to build a strong credit record.

 

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