Ann Smith
Broker


Platinum Award Recipient

Phone: 519-433-4331
Toll Free:
1-866-851-1534
Fax: 519-433-6894Email: ansmith@sympatico.ca

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Good Credit Lays a Solid Foundation

By Ann Smith

Do you know your credit score?  Are you afraid to ask?  If you’re thinking of buying a home, or borrowing money for any major purchase, you need to know before you head to the bank. 

Your credit report is your credit history created with data about you from utility companies, landlords, banks, credit card companies, and others.  Your FICO® credit score is calculated based on your payment history, amounts outstanding, length of credit history, and types of credit…and determines how a financial institution views you. 

Scores range from 300 to 850; higher is better.  Higher scores ultimately mean lower interest rates – and that can drastically affect how much you pay each month.  So, knowing your credit score and taking steps to improve it, if necessary, will help you save money in the long run.  

Here are a few sites where you can access the FICO® assessment.  Use with discretion of course, since the number of times you (or someone else) requests this information is noted in the score as well. 

·               Equifax:       www.equifax.com (Canada)

·               Experian:      www.experian.com  (U.S.)

·               Trans Union: www.transunion.com (U.S.)

Once you know how you rate and realize there is room for improvement, consider these best practices for a good credit rating in the future: 

·               Obtain your credit report once a year and promptly correct any mistakes.  Typos and human error can occur to your detriment.

·               Selectively fill out applications for credit. Many cards are not better.

·               Spread out your credit card balance over the cards that you already have. The ratio between owing and the limit should be 30% or less.

·               Pay your bills on time – start now if you haven’t done so in the past. 

Do everything you can to protect your credit. A good credit rating will give you confidence in securing the money for your home and allow you to approach various lenders and secure the best rate.   

Purchasing a home is a huge investment…and having a solid credit rating is the best foundation! 

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