Equifax and TransUnion take your debt repayment information/history and produce a credit score for you. This credit score becomes INCREDIBLY important when qualifying for a Mortgage.
In fact, my credit score is THE MOST important factor when qualifying for a Mortgage. If I have any challenges with my income or down payment when applying for a Mortgage, there are usually creative solutions for each scenario.
However, if I have major challenges to credit, this stop’s the Mortgage file dead its’ tracks. Period.
If your Bank (credit card company) has offered to increase your credit limit – consider taking advantage of agreeing to this change.
Increasing your credit limit is going to increase the spread between your balance and limit – positively effecting your credit score.
The one caveat to this is …please responsibly manage your credit score. For some people, increasing access to credit leads to people expanding their debt. If I have this tendency, I might not want to increase my credit limit :-).
If not, consider pulling your own credit bureau from Equifax here.
Sometimes there is mis-information in my credit history and correcting everything before the crunch time of purchasing/refinancing or renewing my Mortgage is significantly less stressful than not.
According to Equifax, I can pull my own credit bureau for $23.95
Continue making at least the minimum payment on your outstanding consumer debt. Ideally, focus the majority of your payments towards the highest interest rate debt first.
If you are willing (able?) consider increasing the limit on your credit card to rapidly increase your credit score.
Share this information with someone you care about. Forward this blog post to them, or just mention this to them in conversation.
IF you are refinancing or renewing your Mortgage, check in with me before making your final decisions of where to place your next Mortgage.
I think it’s important you to feel 100% confident in making these rare and large financial decisions. Send me an email (chad@canadamortgagedirect.com) or call me directly 403-809-5447.
Talk soon,
Chad Moore
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