Tips for Improving Your Credit Score 1) Avoid “Shopping” for credit. If multiple loan companies request a Credit Bureau report in a short period of time, your file may be flagged “Credit Seeking;" this can lower your score significantly. Even if a company approaches you on the phone, for a credit increase on an existing account or for a new credit or store card, they may pull a credit bureau, potentially affecting your score. 2) Always keep your credit card balances below their limit. Any amount over the limit has a negative impact on your score. Also, lenders do not like to see your credit card balance too close to your limit, so try to keep the balance on your cards to less than 75% of the maximum amount. 3) To maintain the very best credit rating score, ensure all loans and credit cards are paid on time. Missed or late payments show on your credit report for up to seven years, and lower your score! 4) If there is a judgment or lien against you for non-payment of a bill or loan, please do all you can to clear the debt before you apply for a mortgage. Most lenders will not approve a mortgage or advance funds unless all judgments are cleared. They may insist these debts be cleared from proceeds if it is a refinance. 5) Try to maintain a mix of “revolving” credit and “installment” credit. An example of revolving credit is a credit card; installment credit is a fixed loan payment over a period of time, such as a car loan. 6) Avoid any major purchases on credit (appliances, vehicles, etc...) six months before a mortgage application, and especially during the time an application is being processed. Not only will the purchase increase your debt load and decrease the amount of mortgage you can afford, but it can actually result in a mortgage application being declined due to the customer carrying too much recent debt. 7) Avoid applying for or carrying more than four credit and department store cards, even if some of them have no balance owing. Lenders look at your overall capacity for credit; if you have a lot of credit card borrowing available to you, they may reduce the amount they are willing to lend for a mortgage as you could technically use the card balances at any time. 8) Student Loan payments must be up to date. If there are amounts owing, Lenders will insist the loan be brought up to date before loaning money. A default on your student loan will have a very negative impact on your credit score, and Lenders will insist it be paid before lending. 9) Always disclose ALL debts, liens, bankruptcies, consumer proposals or judgments to a potential lender or your Mortgage Agent, even if they do not appear on your credit bureau report. Lenders can and will cancel deals, even right on the day of closing, if they discover unreported items during legal searches, as they may feel the customer has made a misrepresentation on the credit application. 10) "No Payments, No Interest" deals count, too! Be aware that even if you haven’t started making payments yet, or plan to pay the balance before the loan starts, the amount of the purchase and potential payments are registered on the Credit Bureau, limiting the credit available to you. 11) Ensure all ongoing mortgage or rent payments are up to date and avoid any late payments. When processing a mortgage application, many Lenders will request a statement from the Landlord or current mortgage holder showing no payments in arrears or late payments. A poor payment record can result in a declined application or increased risk and a higher interest rate charged. 12) You can request a copy of your Credit Bureau by visiting www.equifax.ca or calling 1-800-465-7166. These are a few suggestions to assist you in getting and keeping the highest possible credit bureau score. Please keep in mind that the higher your score, the lower your interest rates and the easier it is to qualify for a loan or mortgage, saving you thousands in interest costs over the life of a loans and mortgages. If you have any questions, please give me a call.