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HOW TO HAVE
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
THE BEST CREDIT SCORE
Having a good credit score should not be rocket science.
Here are 13 simple DO’s & DON’Ts to
help you improve your score or maintain an already great credit score.
DON’T
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
GO OVER YOUR LIMIT You could lose up to 20 points off your credit
score, just for going over your limit. Keep in mind, balances report to the credit report once a month usually, so may be able to avoid cratering your credit score if you pay off the overage A.S.A.P.
DO
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
HAVE CREDIT Make sure you have credit that is actually reporting
to your credit bureau. That is things like: credit cards, student loans, personal line of credit, car
loan, etc.
DON’T
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
MISS ANY PAYMENTS We can see on your credit report how many times
you have been 30, 60 & 90 days late on the minimum payment due. Lenders are looking at your past repayment history when deciding to
extend you more credit or not.
DO
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
PAY DOWN CREDIT BALANCES Reducing your debt level is never a bad idea. But be aware that you need to be using your credit in
order for it to be updating. So even if you pay everything off, still put a small balance on one card
and pay it off at the of the month in order to maintain a good repayment history that is still
reporting.
DON’T
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
GIVE LENDERS DIFFERENT PERSONAL INFORMATION
Each time a potential lender pulls your credit, it also updated the information on the actual credit report. Ensure you providing the most accurate
address, employment and personal details to avoid inconsistent data.
DO
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
CHECK YOUR CREDIT AT LEAST ONCE A YEAR
I say at least, because pulling it twice or three times a year is even better. Knowing what is on
your credit report is your best tool to having a great credit score. It also prevents identity theft, or at the
least, promotes early detection. The 2 most recognized credit reporting agencies to pull your own credit in Canada are Equifax & Transunion.
DON’T
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
GO ABOVE 75% OF YOUR AVAILABLE LIMIT
This number is up for debate. The moral of the story is utilization affects your credit score. If you can, spread out debt balances over a couple of
cards rather than maxing out one. Or, always pay your balance to $0 before month’s end if you never
want to worry about utilization again.
DO
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
CORRECT INACCURACIES ON YOUR CREDIT REPORT
Incorrect information on your credit report can be affecting you negatively the longer it stays on there. You need to contact the credit reporting
agencies to get those inaccuracies corrected as soon as possible. Be prepared to provide
supporting paperwork, if applicable.
DON’T
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
HAVE JUST ONE TYPE OF CREDIT
Varied credit types with different payment structures will keep your credit score high. If you had to choose between 2 credit cards, or a credit card and a loan, choose the latter as it shows you can handle different types of payment. One being
revolving, the other an installment payment.
DO
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
TALK TO A PROFESSIONAL ABOUT YOUR CREDIT
If you are thinking of borrowing money in the future, for anything, it pays to have a good credit
score. Since credit repair can take months, it makes sense to talk to a professional early. Make sure you’ve determined your financial goals, and then find a professional that shares that vision.
DON’T
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
GET PRESSURED INTO CREDIT YOU DON’T NEED
Your credit is something you should hold dear. It affects your finances and it can take a long time to
fix. I’m reminded of those kiosks in the mall that give away small gifts in exchange for signing up for
a new credit card. AVOID THOSE! It’s not worth the small present, I promise your good credit score
is more valuable.
DO
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
LEAVE SOME UNUSED CREDIT OPEN
It shows you have the ability to handle available credit without using it. It also improves your score by lowering credit utilization. If you like to spend what you have access to, it’s not a bad idea to
close the credit you don’t use in order to prevent you from bruising your credit score.
DON’T
Jackie Woodward // TMG // P: 780.433.8412 // E: [email protected]
WAIT TO GET HELP
Don’t be ashamed to make payment arrangements if you are having financial difficulties. It’s not going
to get better the longer you wait. Go directly to your creditors before things get too bad, ideally
they’re willing to work with you rather than take a loss.
DO CONTACT THE MORTGAGEGIRL IF YOU
HAVE MORTGAGE OR CREDIT QUESTIONS!
Jackie Woodward Mortgage Specialist TMG The Mortgage Group Alberta Phone: 780.433.8412 Email: [email protected] Visit: www.mortgagegirl.ca Follow @mortgagegirlca
