Credit Report - Understanding the Importance
Thursday Nov 02nd, 2017Share
Are you looking to buy a home or consolidate some debt?
How is your credit score?
You may have limited options if your credit cards are maxed out as this lowers your credit score.
I can put you in touch with a professional who can help you prepare for your financing! Call me (905) 867-9440
What Is A Credit History Anyway?
A credit report shows a history of how consistently you pay your financial obligations. It is created when you first borrow money or apply for credit and is built over time.
The Credit report summarizes information about the different types of accounts you have. It will include the following account types:
- Revolving accounts: credit cards and line of credits
- Installment accounts: loans
- Other accounts, for example cell phone
- Collection Amounts
You can obtain your credit report by phone, fax, or the easiest through a credit-reporting agency such as Equifax or TransUnion Canada.
Did You Know?
If you have a credit card with a $ 10,000 balance at a rate of 19.99% and making only minimum payments it would take you
25.2 years to pay off the balance!!!
That is 303 more payments over and above the
minimum payment and $ 12,241 in Interest.
Essentially your purchased cost you more than double.
TIPS TO REMEMBER
TO IMPROVE YOUR SCORE
- Make sure you have a credit history: you may not have a score because you do not have a record of owing money and paying it back.
- Always pay your bills on time
- Don't go over 50% of the credit limit on your credit card
- Apply for credit in moderation
Don't forget, being in the real estate industry for almost 32 years means I have many connections and resources at my fingertips. Call me for assistance!
Direct Line (905) 867-9440
Courtesy of Corina Murphy - Premiere Mortgage Centre