The TOP THREE Beacon Score Killers!
- The obvious killers are bankruptcies, judgments, etc.
- Payments over 30-days late
- Maxing out credit cards (i.e. using over 75-80% of a high credit limit)
Interesting to note, maxing out your credit cards does not mean reaching your credit card limit but nearing your limit can hit a beacon hard as well!
If you have more than one maxed out cards, bring them at least below 50% of the limit but the magic number is below 30%. Your credit score can jump considerably in as little as a month when you pay down debt and begin managing your credit correctly!
Keep in mind, even if your credit cards are paid off in full every month AND you are still maxing out your card the bureau calculators do not consider this. The credit bureaus see only the balance last reported by the credit card company. Yes it shows you made a payment on time but for how much it doesn’t factor into the equation.
Did you know that over 70-80% of Canadians have mistakes on their credit report?
As a mortgage specialist, I have witnessed many errors, including wrong birth dates, incorrect SIN numbers, Balances on closed accounts and other minor details like a wrong address or employer name. The moral of the story is… check your credit bureau!
It is best to verify your bureau information with all three Canadian credit bureaus, Equifax, Experian and TransUnion. Remember you are entitled to a FREE credit bureau report annually but if you want to include your credit score you will have to pay small fee.
Click here to locate the contact information for all three Canadian credit burueau companies.
Filed under: Beacon Score, Credit Tips and Tricks, Mortgage Planning | Tagged: Beacon Score, Credit Bureau, Credit Tips and Tricks, Finance, Interest Rates, Mortgage Advice, Mortgage Planning
