So you want to buy a home but your credit hasn’t been a priority over the last few years. You’ve been to your bank and left with a feeling of rejection. You need to get a quick crash course in credit rebuilding and here is where you will find it. Come on let’s go!
Credit Missing In Action Barrie
With everything in life – something is usually not important to us until we need it. Credit is no exception and an area that is critical to your financial success. Up to this point you have been able to use – and yes – even abuse your credit without much consequence as you knew you would be able to make that minimum payment the next month. All of a sudden it is not just about how much you have at the end of the month to throw at the card – it is a matter of whether you get an approval or not!
Back To Basics – Credit 101
Your credit score, also referred to as a “FICO score,” is a mathematical formula created by Fair, Issac and Company. Your credit score is used by most companies to decide if you are a good credit risk or not. Equifax and Trans Union – the credit reporting agencies – will calculate the numbers from your credit report and generate a number between 300 and 900. A low score indicates a bad risk. A score of 650 or more puts you in the lenders’ good books. Here is a general guide to the weighting of the different factors of how that score is decided:
1) Payment History (35% of your score) – Bankruptcies, late payments, past due accounts, collections, judgements
2) Amounts Owed (30% of your score) – Amount owed on accounts, proportion of balance to total credit limit
3) Length of Credit History (15% of your score) – Time since accounts opened, time since account activity
4) New Credit (10% of your score) – Number of recent credit inquiries, number of recently opened accounts
5) Types of Credit (10% of your score) – Number of various types of accounts (credit cards, retail cards, mortgage)
Master The Credit Game In Barrie Ontario
Now that your credit is important to you – there are a number of things you need to do in order to get it back into game shape.
A. The first is to order a copy of your credit bureau and then determine where you stand.
B. Next is to address the obvious errors that exist on roughly 1 in 3 Canadian credit bureaus and get the right information over to the reporting agency.
C. Thirdly – take the time to get an expert’s eye on your bureau in order to have their experience weigh in and avoid the common mistakes made in the repair process.
D. Lastly – there will be a period of time between making the changes and having the monthly credit reporting cycle lapse in order to get the effect of an improved credit score. You will just have to be patient and let time heal all wounds.
I am here to assist in this process. My credit enhancement services are complementary – translated free – and will make a huge difference in cutting the time it will take to get your credit in a position to pull the trigger and buy that special piece of property in Barrie called home. Take the time to reach out to me below and I will answer your questions in a prompt fashion.