Credit Scores: What Affects Them Before You Buy
What your score is, what moves it, and what to clean up in the months before you apply.
Your credit score is one of the first things a lender checks. In Canada scores run from 300 to 900, and they come from two credit bureaus: Equifax and TransUnion.
What moves your score the most is paying on time, every time. After that, it's how much of your available credit you're using. Keeping card balances well under the limit helps.
How long you've had credit, the mix of credit you have, and how often you apply for new credit all play a part too. A bunch of new applications right before a mortgage can look risky.
You can get your credit report free from both bureaus. Check it a few months before you apply so there's time to fix any mistakes.
Quick tip: hold off on financing a new truck or furniture until after your home purchase closes. Lenders often re-check your credit right before closing.
Inspired by Credit Scores: What Are They and What Affects Them? on REALTOR.ca's Living Room blog. Further reading there.
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