Why is that important? ... Have you heard of anyone whose beacon score is low?
When applying for a mortgage (car, home), lenders look at Your Credit History that is ranked as a 3-digit credit score number ("Beacon Score" in Canada).
- Credit scores (such as ERS prepared in Canada by Equifax) predict the likelyhood of a consumer going 90-days past due within the next 12 months
- Scores range from 300 - 900 ... higher the score, the better chances for a consumer being approved for a mortgage by a lender
What I learned from mortgage specialists and What one of the representatives at Equifax told me:
- Pay off your creditors (credit cards, utility companies, etc) in full on monthly basis. FYI, only the monthly minimum is NOT helping you to build up the credit history
- In case the extra cash flow is needed - use only half of the credit limit allowed (when carrying it over from month to month) ... otherwise, the lenders can see you as a "credit seeker"
- Get your report & know your score ... check it once a year (maximum) - it's only $23.95 per report and you know exactly where you stand
- For an added peace of mind, you could Monitor your Credit & Protect your identity from the idenity theft... But that's for another discussion.
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