Credit Rating

Something that is very important in the world of finance is your credit rating. Great credit opens doors while bad credit can restrict you for years.  How do you build and maintain a AAA Credit Rating?  You can think that you have great credit but if you haven’t actually seen your credit bureau or had it reviewed by a professional you aren’t going to know what the Lender likes and dislikes. Sometimes the need for financing pops up unexpectedly and the difference between great credit and damaged credit can be from hundreds to tens of thousands of dollars depending on the amount borrowed. 
First things first, log on to the Equifax Canada website and pay the $24 to get your score.  It won’t be the in depth version that I get but once you have it go over that information carefully and make sure what is on it belongs to you and is accurate.   If you have questions or want a detailed explanation, call a Mortgage professional like David Iverson at White House Mortgages 250-878-1541.

 Once you’ve run your credit bureau and paid the twenty-something bucks to get your credit score here is how it works.  Scores range from 300 (worst) to 900 (best) and everything over 680 is considered AAA however, more options become available with a score over 700.  If your score is of the 700 plus variety you have probably done most things correctly.  If your score is between 650 –700 you haven’t had many difficulties but need coaching.  600-650 you have encountered more than a couple of credit mishaps and anything lower than 600 is re-occurring credit nightmare that needs help fast because you can’t repair this overnight.  Some think they just have to pay down their credit and everything will work itself out.  As much as this is true, it isn’t just about paying down your debt.  What I can show you is the difference between months and years of credit rehab.  Tip #1) Always make at least the minimum monthly payment EVEN if it is only $3.00.  Credit is reported digitally and a computer only recognizes whether you made your payment or didn’t make it.  Tip #2) Never go past ½ of your credit limit.  The newer the credit line is and the closer you get to the limit, the more points off your score it will cost you.  Tip #3) Always try to maintain a minimum of two credit lines. Three is ideal, Visa, M/C & Amex or a line of credit or bank loan, not that you want a loan but it will report the credit agency.  With this scenario and proper maintenance of your credit you will build a stronger score and achieve it sooner.