Keeping your credit clean!
Now, more than ever, it is extremely important to keep a good credit rating. There is every indication that it will become harder for those with lax credit to renew mortgages or to get loans. Credit limits that are unused will most likely be cut giving the average Canadian less access to ready credit in the event of an emergency. Keeping your credit healthy will go a long way to giving peace of mind in an otherwise turbulent market environment.
Please feel free to send out the following to your client base:
KEEPING YOUR CREDIT CLEAN
- Keep your balance under 50 per cent of your credit limit. If you can't split the balance between a couple of cards to stay below 50 per cent, ask to have your limit increased so that you can stay below that 50-per-cent mark.
- Always make your minimum payment, and make it on time. Don't double up one month and skip the next one. Your score is calculated by a computer system, and if you miss a minimum payment (even if it's for $15) it will likely reduce your credit score.
- If you have an old credit card or line of credit you don't use, don't close it. Keep it active but leave the balance at zero as the length of time it's reported on your credit report as being in good standing can increase your score.
- Pay out any old collections or judgments.
- Anything negative will drop off your report after six years, so don't worry if you were sloppy many years ago when you were young and having some fun! As long as you have been careful the last six years (and more importantly the last two) you will likely be fine.
Filed under: Real Estate, Buyer Information, homes for sale in the okanagan, house values, canadian house prices, mortgages, Real Estate prices in kelowna, kelowna economy, purchasing a home, credit ratings, first time home buyer