We Can Help You Build or Improve Your Credit Score

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Credit Scores

Credit scores are based on some key factors, and they’re reported by credit bureaus like Equifax and TransUnion which use a credit score range between 300-900. 

The higher the score the better the rating as the likelihood of a person not paying their bills (delinquency rate) decreases.

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Lenders

We work with a wide network of lenders which includes many flexible alternative and private lenders, and we are experts at helping people build and improve their credit.  This means we can help you get your mortgage funding now and once your credit score improves; we’ll help you refinance at a lower rate.

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Rebuild Credit

Life Happens, and bad things happen to good people.  Now is the time to rebuild your credit.

Repairing and building a good credit score takes time and effort, but you can do it and we are here to help.  

Across Canada, here is how credit scores relate to delinquency rate:
Credit Rating
Score
Delinquency Rate
Poor
300-499
55%
Poor
500-549
33%
Poor/Fair
550-599
21%
Fair
600-649
11%
Fair/Good
650-699
5%
Good/Very Good
700-749
2%
Very Good/Excellent
750-799
1%
Excellent
800-900
1%

Improve Your Credit Score

We work with a wide network of lenders

Lenders rely on credit bureau reports to help determine if they will get paid and therefore if they will lend money (extend credit) and if so at what rate.

 

Traditional lenders like banks and credit unions have strict guidelines in place, so they are unlikely to give someone with no credit history or bad credit (poor/fair) credit.   Alternative and private lenders can be more flexible and often place more importance on home equity than credit score.  That said interest rates for someone with no credit or bad credit will be higher than for someone with good credit, so if you are new to Canada or a young person, it is important to build your credit, or if you have bad credit, it’s important to repair it.  

 

We work with a wide network of lenders which includes many flexible alternative and private lenders, and we are experts at helping people build and improve their credit.  This means we can help you get your mortgage funding now and once your credit score improves; we’ll help you refinance at a lower rate. 

New to Canada or Young?  You need to build your credit history

Life Happens, and bad things happen to good people.  Now is the time to rebuild your credit

 

Maybe you lost your job, got sick, or divorced; whatever happened, the situation resulted in one of the following, which impacted your credit.  

 

  • Late or missed payments of bills

  • Debt that has gone to a collection agency

  • Debt that has been written off

  • Repossessed vehicle

  • Power of Sale of a home

  • Bankruptcy

  • Consumer Proposal

  • Inadvertent errors on credit report (yes it happens!)

So how can you build or re-build your credit score?
Understanding what makes up your credit score is a good start!

#1 Payment History

 

35% of your score is based on your payment history.  This includes credit cards, lines of credit, loans, car payments, cellphone carriers, utility bills, even unpaid parking tickets.  A missed payment or a collection on your credit bureau can significantly lower your score.

 

#2 Utilization Ratio

 

30% of your score is how much of your credit limit on credit cards and lines of credit is being used each month.  Keeping your usage below 30% is the best as it shows you are using your credit responsibly which increases your score.  Don’t go over 70% usage as it looks like you could be in financial difficulties which decreases your score.  If you are able to pay off your credit each month, the timing of when you make the payment makes a difference! Paying your card by the due date is critical but if you pay your card at a different time (maybe on pay day) and that day happens to be just before your lender reports to the credit bureau, it looks like you are not using your credit which will decrease your score. 

 

#3 Length of Credit

 

15% of your score is based on your credit history.  A minimum of two years history on each credit account; the longer the better. If you are switching credit card companies, do not cancel your old accounts until you establish history with new accounts.

 

#4 Types of Credit

 

10% of your score is based on the mix of credit you may have.  Having different types of credit is good for your score; for example, a “bank” credit card, a department store credit card, a line of credit, and a personal loan (for example a car loan).  A minimum of two active credit accounts is favourable, but don’t have too many as that will decrease your score.  Note the total amount of available credit is also a factor, so if you have a credit card with a high credit limit, keep the credit limit on a second card or line of credit low. 

 

If you are new to Canada, are young, or have gone through a bankruptcy/consumer proposal, getting a secured credit card is one of the easiest ways of building your credit.  A secured card is backed with cash which you deposit, for example $500. The $500 becomes your credit limit.  By using the credit each month and paying the balance off, bringing your credit limit back up to or close to the $500, you are creating a history of credit utilization and regular payments.  After 6 months to a year, you should be able to apply for a non-secured credit card. 

 

#5 Inquiries

 

10% of your score is based on inquiries.  Everyone time you are looking for credit (even for a new cell phone plan or some car insurance agencies), your credit report will be checked.  This is called a hard check.  The fewer hard checks the better because a lot of inquiries make lenders nervous that you might be living beyond your means.

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Create a budget     

A simple budget can help you get back on track and/or stay on track.  We’ll help you create a simple but realistic budget and recommend some easy ways to stick to it.  Your budget will help you with the number one credit score factor – paying your bills on time and building a good “Payment History”.

 

Pay Down Existing Debt

This may seem overwhelming or even impossible but with a budget and perhaps a debt consolidation loan or a second mortgage, you can do it.  Paying down your debt will help with “Credit Utilization” which is the second most important credit score factor.  Just remember that if you pay off a credit card, don’t close it, as “Credit History” and “Credit Mix” are the 3rd and 4th key credit score factors.  

We care about your credit, your time, and your money; we will not shop your application around as multiple credit bureau “Inquiries”, the 5th key credit score factor, is looked on negatively by lenders.  

 

Repairing and building a good credit score takes time and effort, but you can do it and we are here to help.  

Book Your Free Consultation Today!  

Improving your credit score can be overwhelming.  We can help you to: 

   

                                                              Or Call Us Now 1-888-234-1270