These are hard times and have been for a numbers of years. That means a loss of income for some hardworking people and maybe even a dent in your credit rating that can make it harder for you to qualify for a mortgage. We’re the Mortgage brokers Toronto that want to help our valued clients in all areas through a variety of tough situations, so here’s a few tips for getting those credit scores back on track if you’ve hit a rough patch.
Get some credit if you don’t have any
Although that piece of advice might sound a little counterintuitive, you need to have some kind of credit to show lending institutions you’re trustworthy and understand how the credit game is played.
A credit card is a good start. Look for one that reports to all the three credit bureaus and if you don’t qualify for the normal variety, get a secured card that allows for withdrawals based on how much you have in the bank. Remember you shouldn’t carry a balance and making more than the minimum payments on time does wonders when you’re trying to rebuild a credit score
Pay down the cards you have
Before you get involved in the world of Toronto mortgage rates, it’s a good idea to demonstrate responsible behaviour with the credit cards you already have. When creditors see you’ve been paying down the balance on what’s called revolving credit, they take notice and you’ll be one step closer to getting the household financing you’re looking for.
Although there are some experts in the credit field that recommend paying off the cards with the highest interest rates first, you should know the balances are what’s generally reported to the credit bureaus.