Scoring Points

Posted on 25 June, 2012

Several factors come into play when applying for a Mortgage, one item being Credit Score. An individual’s credit score is an essential part of the decline or approval decision; yet the fact remains that many Canadians know very little about their Credit Bureau Report or Score.

Credit Bureaus collect your personalized credit information. These records indicate current debt load, repayment history, public records, unpaid collections, accounts history, types of credit used and numbers of inquiries made into your credit report. A Credit (or Beacon) Score, compiles these factors into a numbering system for lender usage. Your credit history is crucial as it may determine the rate you will receive from prospective lenders.

For example, your credit score indicates the risk you represent to lenders in comparison to other consumers. The two major credit reporting agencies, Equifax and TransUnion, use a scale of measurement from 300 to 900 to communicate individual score. Thus, the higher the Credit Score the lower the risk for the lender to approve financing.

Whatever your bureau history is, there are always methods available to improve it. Talk to one of our Mortgage Brokers for ways to build your credit.


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