Posted: 1 Sep '17

Dominion Lending Centres Looking To Buy Your First Home How To Know If Your Credit Is Good

The fastest way to finance the purchase of your first home is through a loan. It goes without saying that the first thing your prospective lender will look into before lending you, is indeed your credit history. Ironically, most people do not pay any attention to their credit until they need to rely on it. Additionally, most people don’t even know what is meant by a credit score. Let’s break this down.

What Is A Credit Score?

Your credit score is an expression of the risk a lender bears for lending you their money. The figure is arrived at as a sum total of your entire credit history condensed in one number. The single figure summarizes your money borrowing and payment activity contained in your credit report/file. It provides a statistical proof of your willingness and ability to make timely payments for your loans and bills. The number ranges between 0 and 1200 and the higher you, the more trustworthy and reliable you appear to prospective lenders.

What Makes For Good Credit?

You may be mistaken to think that avoiding loans or debts entirely will result in a higher credit score. On the contrary, it is the ability to fulfill your financial obligations in due time, that will show Dominion Lending Centres that you can be trusted with a future debt. Additionally, the following factors are indicative of good credit.

  • You make your payments on time, regardless of the amount
  • You don’t miss any payments
  • You do not skip any payments
  • You keep a low balance on your credit cards
  • You pay attention to reminders and respond to them promptly
  • You keep track of your credit report to ensure there are no mistakes
  • You address mistakes on your credit card immediately

It is a fact that having a good credit makes the process of acquiring a loan much easier. However, with the help of a good mortgage broker, you can still realize your dreams of owning your dream house regardless of your credit score.

Dominion Lending Centres continues to help families in Canada realize their dreams. The mortgage professionals at Dominion Lending Centres are industry leaders in their respective fields. To understand more about your credit score, and to get reliable help in financing your first home, contact Dominion Lending Centres today to talk to an expert.

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