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Valko Financial Ltd.

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Credit Scores

Your credit score is a big factor when you apply for a mortgage.  It can dictate how good your interest rate will be and the type of mortgage you qualify for.

We’re experienced helping clients with a wide range of credit scores so we can find you a mortgage product even if your credit is far from perfect.

The good news about your credit score is that it can be improved:

  • Stop looking for more credit.  If you’re frequently seeking credit that can affect your score as can the size of the balances you carry. Every time you apply for credit there is a hard credit check.  It is particularly important that you not apply for a credit card in the six months leading up to your mortgage application.  These credit checks may stay on your file for up to three years.
  • If your credit card is maxed out all the time, that’s going to hurt your credit score.  Make some small monthly regular payments to reduce your balance and start using your debit card more.  It’s important that you try to keep your balance under 30% or even 20% of your credit limit.
  • It’s also important to make your credit payments on time. People are often surprised that not paying their cell phone bill can hurt their credit score in the same way as not making their mortgage payment.
  • You should use your credit cards at least every few months.  That’s so its use is reported to credit reporting agencies.  As long as you pay the balance off quickly you won’t pay any interest.
  • You may wish to consider special credit cards used to rebuild credit.  You simply make a deposit on the card and you get a credit limit for the value of that deposit.  They are easy to get because the credit card company isn’t taking any risks.

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