It’s important to repair your credit, as a credit score is used to determine how well you can repay borrowed money. Showing lenders good financial habits and proof of repaying past loans in a timely manner increases the chance for requested financing.
Licensed as both Mortgage Broker and Financial Advisor, I have spoken to various types of clients in Kelowna with all sorts of backgrounds. They don’t all have perfect financial pasts. Sometimes they joke with me that if their identity was stolen, their credit score might actually increase. No one wants that!
But there are many ways a credit score can be repaired
Using my financial and mortgage know-how, I am here to help get you on the right track to owning a home.
Tips to repair your credit:
Get a credit report – Everyone is entitled to a free credit report. The report contains information used to calculate your credit score. You can go online to get yours.
When you receive the report, you can see where your score currently sits and how much work you’ll need to do in repairs.
Improve your score – Mortgage lenders put a lot of focus on payment history so the fastest way to bump up your score is to pay your bills on time. Keep balances low (max. 50% of the available limit) on all credit cards. Credit cards were not invented to pay off other credit cards. Pay off debt rather than move it around.
Your total debt should not be more than 20% of your monthly net worth.
Want more tips?
Get Your 10 Extremely Important Do’s and Don’ts to Repair your Credit.