What's a credit score got to do with it?
That awkward question you have to answer when meeting with a financial professional “Do you know what your FICO score is?” makes most people cringe. Here’s what a credit score (and credit report) says about you and how lenders perceive you when considering your pre-approval application.
Let’s start with the basics – here is the FICO Credit score scale (and how they get to that score) so you can see where you should ideally be when applying for a mortgage (or any credit really). Lenders all have their own preference for where they want you to be in terms of credit score, which will also be a factor with what rate you are offered. Always aim to be in the green!
How to build a good credit:
- Pay on time! Even your cell phone bills are recorded for late payments, so make sure you pay EVERYTHING on time. I can’t stress this enough. You would be amazed at how many people had no idea before applying for a mortgage that their phone bill was ruining their credit due to late payment!
- Don’t go over limit! Credit reports will show that you went over limit, and at the time of application, will also show by how much. Try using your savings to pay things down if need be instead of over-using your credit cards. Perhaps as a last resort, borrow from a family member.
- Variety of credit – lenders like to see that you can handle at least a credit card and/or personal loan, still have savings and be in good standings. What you do with your money says a lot about how responsible you will be when having to make mortgage payments.
With these basics you will be well on your way to a solid foundation for home-ownership approval!
Feel free to download the free MOPOLO Credit score checker app and type in my name and you can see what your score is! Visit www.mopolo.ca for more information on that.
I hope this information will help you get the courage to check your score and build a healthy credit report – if you need guidance in doing so, I am here to help!
Take Care ladies!
Sharon Abrego
Mortgage Agent
FSCO Lic # M19001998
Tel: (519) 221-7402
Email: sabrego@mortgagealliance.com
Web: https://www.mortgagealliance.com/SharonAbrego
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