How can you improve your credit score?
Most people don’t check their credit score until they need to borrow money. Sometimes that can be an issue if you don’t realize there are issues on your credit report till it is too late to fix it.
I always recommend you pull your own credit report once a year or at least 6 months before you plan to borrow any money and especially for a mortgage.
How can you improve your credit score?
Here are some IMPORTANT things to remember
- Have a credit card in your own name. If you share a card with someone ensure you are a joint applicant and not a secondary borrower. If you are a secondary borrower only your use of that credit card may not be reporting to the credit bureau!
- Pay your credit card a few days before the due date to ensure you are on time each month
- Avoid making small payments each week and after a transaction. Make one payment on time for the due date.
- Don’t extend the credit card beyond the limit
- Keep the balance below 50% if possible to show you can manage credit
How can you improve your credit score?
Consult with your independent mortgage broker early in the borrowing process to discuss your credit report and manage activities to improve your score. It can impact your ability to borrow and the interest rate you pay!