BradsMortgages.com

Credit Report, November 7, 2007

Here's an old topic but an important one.

I had another client with a mistake on his credit report again.  A small error that was over looked, caused a past due of 90 days.  Even though it was not the client's fault, sometime's just paying it does not correct the problem.  In this case the account said paid but the derogatory R3 missed payment still sits on his report.

There have been many discussions around credit bureaus recently due to the high number of identities stolen in the past few years.  The biggest misconception relates to the number of inquiries that an individual is permitted each year.  Consumers are allowed to have a number of inquiries each year without it affecting their credit score.  A reasonable amount is 7 inquiries.  A strong credit score is extremely important.  A credit report is the main indicator of your ability to repay debt.  For $25, Equifax Canada online will give you access to your personal credit report.  It is imperative that people review this information every 12-18 months to insure that the information is accurate.  Our consultants are trained to review this information with you in detail when you apply for a mortgage.

Most Banks have now embraced a credit scoring system.  Referred to as a FICO score or a BEACON score.  Most "A" lenders require a score in the 600 or above range.  We routinely find mortgages for clients who have lower scores and we can also legally assist clients in increasing their score over a short period of time.

Credit scoring is based upon many different variables.  These include:

- The number of credit lines that you operate

- Your payment behavior and pattern

- Credit card and line of credit balance - are you at your upper limits?

- Amount of outstanding current debt

- Any collections? Small Judgments?

I cannot overemphasize the importance of knowing and understanding your credit history.

Brad's Mortgages - 1.877.459.4414 ext 253 - brad@capitalmortgages.com