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My Mortgage Blog

5 ways to increase your credit score

      …and why that’s important to your mortgage application

1) Check it regularly

Obtain your credit report so you know your score and what is on it. Ensure that any inaccuracies are updated right away as they can delay your mortgage approval.

2) Protect it

Don’t let just anyone pull your credit bureau. If you obtain your bureau this has no negative impact. If several lenders pull credit this can decrease your score. Same goes for anyone asking to do a ‘soft pull’ such as your home insurance provider. Ask your broker first.

3) Lower your balances

Simple math here. A lower balance will result in a higher mortgage amount. Keep your balances no more than 65% of the limit also to increase your score.

4) Pay your bills

Sounds simple but sometimes we forget and think just a day or two late won’t matter. It does. Set up an auto-payment to pay the minimum payment each month.

 5) Don’t close accounts

The opposite of what you think. Time is on your side here. The longer you have held accounts in good standing the higher your credit score. Closing long-term accounts can decrease your score.

Why does all this matter? Feel like it’s Big Brother watching you? Well it is. Your credit score is one of the pillars on which lenders determine if they approve you. Character or credit score, also known as one of the 5 C’s of credit, shows the lender how you’ve paid in the past and then likely in the future. It determines if you can borrow at all, what the rate will be and therefore the maximum approved mortgage amount.

If you’ve made it this far down the blog article then likely you’ve never seen your credit before or you know you’ve hit a few bumps along the way or… no matter where it’s at if you have any questions please do reach out and ask as we are here to help!