It is a score that the
credit bureau assigns to each client when they have some sort of credit such as
credit cards, car loans, RRSP loans, unsecured and secured line of credits.
Most banks look for a
minimum score of 620. Below 620, usually the “A” banks will not approve and
most people will need to look at the B banks or go private.
What affects the beacon is
also if the clients make any late payments, have too much debt and only pay the
minimum on the credit card, the score will go down drastically.
To increase you credit score;
try to use only 1-2 credit cards or not at all. Always pay your bills in full
or at least pay the minimum on time. Late payments will remain on your credit
history for seven years. Any collections will also show up on the credit
bureau.
It is important to
understand your beacon score cause that will decide if you can buy or refinance
your house or not.
Be an informed client.
For more information contact your Toronto
Mortgage Broker
at 416-920-9931
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