Build Strong Credit, Secure Great Rates: Tips for Improving Credit Scores

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Welcome back to Mortgage Mastery! ?? I'm excited to bring you the latest insights and tips in the mortgage industry. In this edition, I dive into the fundamentals of a credit score and how your clients can improve theirs. Let's get started!

A strong credit score is crucial for your clients to secure the best mortgage rates. Here’s how they can improve their credit score!

The Fundamentals of Credit Scores

Credit scores measure your reliability as a borrower. Here are the five key factors that credit bureaus in Canada, like Equifax and TransUnion, use to calculate your credit score:

• Payment History (35%): Avoid late or missed payments.
• Utilization (30%): Use no more than 30% of your available credit.
• Length of Credit History (15%): Older accounts contribute more positively.
• Credit Mix (10%): A variety of credit products is beneficial.
• New Credit (10%): Too many inquiries can signal financial distress.

4 Key Steps for Improving Credit Card Score

New Credit-Building Product

There are a growing number of ways to boost your score:

• Secured Credit Cards: These use a cash deposit as a backstop but function like regular credit cards.
• Credit-Building Loans: Make regular payments on a loan accessed after full repayment.
• Rent Reporting: Services like FrontLobby and Borrowell’s Rent Advantage add rent payments to credit scores.

For Newcomers

Nova Credit's partnership with Scotiabank allows for the sharing of foreign credit bureau data to help establish Canadian credit.

Takeaways:

• Share this newsletter to inform your clients about boosting credit scores.
• Encourage automatic payments to avoid missing due dates.
• Contact me for any questions or further guidance on improving credit scores.

Have clients worried about credit scores? Contact me today to discuss strategies for your clients' credit success.

Thank you for joining me at Mortgage Mastery! ?? Stay tuned for more valuable insights in my upcoming editions. Don't forget to subscribe to my newsletter for the latest updates and expert advice in the mortgage industry.