Credit score in not just a number obtained through the statistical analysis of your credit report. It is an efficient, reliable, unprejudiced and reasonable underwriting tool that helps the mortgage lender to evaluate your credit worthiness. In other words, it helps them to ascertain the amount of loan that you will be able to pay back in a timely manner. Thus, by improving your score, you can boost up your chances of getting a mortgage home loan at a better rate of interest. Here are a few realistic ways of improving your score.
• Pay your bills before the due date- The payment history in your credit report shouldn’t bear any negative marks because these black points remain on the report for no less than 7 years. For an excellent payment history, pay all your bills before the last date. If you don’t pay the bill for more than 30 days, a negative mark will automatically come up on the report.
• Don’t sit upon your debt load- If you are already bearing a huge debt load on your shoulders, then it is important for you to reduce it without delay. By adding to the load, your debt will simply become unmanageable, and in the long run, it would adversely affect your credit score.
• Maintain your old accounts- The chief benefit of a long credit history is that it increases your credit utilization ratio. Hence, it is essential to maintain your old accounts. At times, it is unusually difficult to manage numerous accounts simultaneously. However, if you are able to do this, your credit score would swell up exorbitantly.
• Avoid using more than 20% of the available credit- By utilizing only 20% of your credit limit, you can increase your score dramatically. The best way to make this possible is to wind up the debt backload before taking up a new loan. All your efforts to stick to the 20% limit will leave a positive effect on your credit report.
• Keep your credit report spick and span- Inconsistencies and errors on the credit report serve to ruin your credibility as well as your score. Hence, they should not only be detected at the earliest, but should also be rooted out. If you are unable to track down the errors, then you can engage a credit report management company to get the discrepancies removed as quickly as possible.
• Be vigilant while opening new accounts- In a bid to allure customers like you, credit card companies provide countless irresistible offers and discounts. Instead of grabbing each one of them, do a bit of research to find out the best available option. This is important because each credit enquiry would serve to knock down your score.
Experian, Equifax are two major credit bureaus in the Canada. that have the reputation of calculating the credit score accurately. The first thing that you should do is to get your score calculated. Thereafter, follow the above mentioned tips ardently to improve it. In a short period of time, the positive results will start appearing on your credit report.
Call Domenic Manchisi for more information or a free no obligation consultation on how to obtain your report and how to make sense of it! 905-875-4594 or Domenic@DomenicManchisi.com