What do you really know about your Credit Score?

What do you really know about your Credit Score?

Janet Bedford, Broker: Royal Lepage Real Estate Services Ltd. Brokerage 326 Lakeshore Road East, Oakville, Ontario 905-845-4267 http://www.janetbedfordrealtor.com

Rewards come to reliable borrowers who have the highest credit scores! Are you one of them? Your credit score has the potential of impacting on your life – either positively or negatively. The good news is that recent activity has a bigger impact than older issues.

Your credit rating determines whether or not you qualify to obtain financing for major purchases such as a home or car, whether you can rent a home or sometimes, get a job. It also establishes your interest rates and terms for the money you borrow. The higher your score, the more ability you have to maximize your situation.

Just one late payment can destroy all your hard work and could cost you thousands of dollars in the future. Raise Your Standing and Boost Your Score! It will demonstrate your dependability to lenders wanting to loan you money.

Make all of your payments on time every month, including taxes and utility bills. Pay more than the minimum due whenever possible. This will reduce your amount of debt and decrease your credit interest charges.

Keep your ratio of outstanding debt to available credit to less than 30%, whenever possible. Carry more debt on your low interest cards and pay off the cards with the higher interest rates first. Pay as much as you can toward the cards with high interest rates whenever you have extra funds available.

Avoid applying for new credit if you plan to secure a major loan in the near future. If you are buying a home, for example, wait to apply for a new credit card, purchase new furniture – or your new car – until you have your mortgage and have moved in to your new home. Recently opened accounts or multiple credit inquiries can signal risk to a lender.

Avoid closing long-standing credit lines or opening too many new ones within a short period of time. Either of these actions could lower the average age of your accounts and affect you adversely. Have at least one credit card, even if you pay the balance off completely each month, in order to establish a credit history.

If you have had difficulties in the past, opening and maintaining a new account will help you restore your credit over time.

Showing that you can handle revolving credit such as prompt payment of a credit card and an instalment debt, such as a car loan, will make you attractive to a lender.

Take control of your debt. Boost your Credit Score!


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