It’s a different day than the one our parents grew up in. Back then their loan or mortgage was provided based on a good job and the relationship with their local bank. Not any more. Today we are subject to a process where our use of credit is weighed in quite heavily toward the interest you will pay and even whether you will get the loan at all. Here is how your credit score plays into the overall picture.
Free Report For Your Personal Credit
Would it enlighten you to know that someone has been watching you? Creepy I know. The fact is that everything in your financial history has been recorded. From your first Canadian Tire Mastercard to the small line of credit you secured at the bank ten years ago. And every month there is a paper trail that monitors exactly how you have been utilizing these accounts. Have you made your payments on time, are you using a high amount of your available credit, are you applying for credit at many different stores – all of this and more is being recorded. Although this may be disconcerting for some – this information is available to you. You can order a free copy of your personal credit reportfrom Equifax and get a copy mailed to you.
The Magic Number – Your Credit Score Canada
The one item that you will not be privy to in the free report is what is called your beacon score. This is a number between 300-900 which reflects an overall strength of your credit profile. The average Canadian hold a score of about 650 depending on whose statistics you are going by. This number is weighted by five major categories and the formula used is a complicated algorithm that is not made available to the public. The only way you can get access to this “magic number” is to purchase a copy of your full credit bureau. You can learn more about this here as well as how to clean up your credit bureau and save money.
Your Credit Bureau And Your Mortgage
Now the moral of this story is a biggie! Your credit bureau and the score you have accumulated are affecting and will affect your mortgage. This can translate into ten of thousands of dollars saved and in your pocket versus the bank’s pocket. We all hate to pay more for something than we had to. In this case a strong credit score vs. a weak one can save you an average of $14,000 in additional interest charged against you on a 250K mortgage over 5 years. All to live in the exact same house – with the exact same space, bedrooms, yard, etc. Now that should be enough to get those fingers clicking, fill out the necessary form, and find out how to turn your credit situation around and fast. My passion is to help you keep your money away from the bank’s record breaking profit margins. This is done through financial education – understanding your personal credit report is a major step in learning how to fend off their greedy fingers from your pay cheque. I am here to help in anyway you feel is beneficial. From teaching you the basics to assisting in having a negative effect on your credit removed through the right channels – feel free to reach out to me below with your credit questions and I will do my utmost to assist you. The best to your credit future!