Understanding Your Credit Report and Credit Score - Part 2

Last week, we noted that people with a lower credit score can find themselves paying a higher interest rate, or even denied access to certain types of loans. The good news is that by taking a few basic precautions, prospective borrowers can protect their credit report and credit score, and increase their access to better rates and a better choice of mortgage products.

Here are a number of steps that you can take to keep your credit report and credit score healthy:
- Pay your debts on time – always meet due dates.
- Don’t max out your credit cards – use only up to 50% of a card’s credit limit.
- Borrow only the amount you can afford to repay.

Check your credit report for mistakes. You can obtain a copy of your credit file free from Equifax (1-800-465-7166) and Trans Union (1-800-663-9980). These free reports will not contain a credit score and it’s a good idea to get both reports. You can order more comprehensive reports including your credit score online from these companies, for a fee.

For those with bruised credit, a MortgageDirect2u Invis mortgage professional can coach you on the ins and outs of improving your credit score over time – as your good credit history is established, in due course your borrowing options will increase. If you wish to get a mortgage while you work on bettering your score, he or she can also advise on how to get a mortgage despite bruised credit.