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Mid-Island Mortgage & Savings

  (Qualicum) Ltd. - Qualicum Beach, B.C.

We are extremely passionate about the mortgage business and enjoy the challenges and rewards associated with working with our clients to reach their financial goals.

Valuable information about issues surrounding purchasing a home and mortgages.

Helpful information about the different documentation and forms associated with real estate purchases.

Mid-Island Mortgage & Savings (Qualicum) Ltd.
191 Fern Road West - Qualicum Beach, B.C. V9K 1S4
p. 250 . 752 .6944
c. 250 - 228 - 7733

The Importance of a Good Credit Score

Good credit is very important in qualifying for a loan. If you are interested in buying a home, you likely going to require a mortgage. Mortgages, like all other loans, require approval. Your credit score will play a major role in if your loan is approved and at what rate.

When you apply for a loan, information from the application along with information from your credit report are used to determine your eligibility for the loan. You credit score tells the lender the statistical probability that you will pay back the loan.

There are many things on your credit report that will affect your credit score. Here is a breakdown:

Previous Payment History
Your payment history is the most heavily weighted attribute of your credit score. This indicates if you have made your credit card, car, etc. payments on time. Events such as late payments, collections, judgments, liens, foreclosures, and bankruptcies are part of this category and are considered quite serious. More recent events and large amounts will affect your score more than older events and small amounts.

Current Debt Level
This compares how much you owe to your credit limits. Statistics show that people that are near their credit limits have little room for error. An interest rate hike or loss of job could result in a default in payments. Keeping your account balances below 75% of your available credit will help your credit score.

Length of Credit History
This shows the potential lender your payment history over a period of time. The longer you are in good standing, the lower risk you are to potential lenders. This is why it is a good idea to simply cut up a credit card you are no longer using then cancel the card all together; however, if you have fees for the card you may want to cancel it.

Pursuit of New Credit
This pertains to how many times your request new credit. Continuously asking for more credit can affect your credit score in a negative way. It alludes to the lender that you have poor budgeting habits and may detour them from lending to you.

Types of Credit
The type of loans you have will affect your credit score. Having a diversity of credit, such as credit cards, and a loan with fixed monthly payments, can help your credit score.

You can check your credit rating once a year free of charge by contacting Equifax online If your file contains data that is out of date or incorrect be sure to contact the Credit Reporting Agency.

If you find that your credit score is low, there are a few things that you can do to boost your credit:

  1. Pay all your bills on time - even if you are just making minimum payments. As discussed above, paying late has a negative affect on your credit score.
  2. Try to keep your balances as low as possible.
  3. Avoid applying for new credit unless you have a need to. Too many inquires in a short time can translate into a sign of financial difficulty.

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