The last thing that you want to experience is getting stalled in your home buying activity because of low credit score. However, this could have been avoided if you were able to observe the necessary preventive measures before submitting yourself for prequalification. Which is the best way for you to prevent this incident from happening again? Simple, increase or improve your Beacon score. Sadly, this task is easier said than done.You have to remember that the change in your credit score does not happen overnight. The effort is a continuing and long term undertaking. Thus, it’s extremely important that you focus on the following concerns:o Determine your score
o Work for a better credit score when necessarySpecifically, you need to do the following:Ask for copies of the credit reportThe first thing that you must do is to get copies of the credit report. This means that you will get copies of the credit report from 2 credit bureaus -Equifax Canada and Trans Union of Canada. These are the entities that provide credit reports. You can make the request for copies of your credit report for all 2 credit bureaus by visiting AnnualCreditReport.com.Verify if there are errors in the credit reportMake sure that there are no discrepancies in the credit reports provided by the 2 credit bureaus. That last thing that you want to happen is to have is a lower credit score based on erroneous information. Thus, it is important that you carefully check every detail of the credit reports. Check the general information such as your name, Social Insurance number, complete address, your birth date as well as other admin related data. Make sure that there are no reported loans that you are not aware of as this can be a suspect credit fraud. If you find any discrepancy or error, waste no time and submit a formal request to rectify the subject discrepancy or error in the report to the concerned credit bureau.Ask for your Beacon scoreThe credit score is requested separately from the credit report. You can request for your Beacon score by visiting MyFICO.com. This site also provides useful information and references about your credit report, credit score as well other related concerns.Assess your financial positionOnce you are in possession of your credit report and your credit score, you can now assess your position in the credit scale. Your credit rating may range from great to bad depending on which particular bracket your Beacon score will fall under. The highest possible Beacon is 850 and the lowest is 300. You may consider yourself tops in as far as credit rating is concerned if the Beacon score is within the 900 to 850 bracket. The average beacon score is 650 and, as a general norm, you will need to get at least a beacon score of 520 to get an approval for your mortgage loan.Devise your action plan to improveA better credit rating or higher score translates to mortgage loans with better terms. For instance, you will be able to get approval to low interest bearing mortgage loans once you improve your Beacon score. Conversely, you will have to pay more interest if you have a lower Beacon score. Thus, it is crucial that you continuously exert effort to further improve your Beacon score.What must you do to further improve your Beacon score? Here are some of the most important items that you must work on:1. Pay your bills to improve your income to debt ratio.
2. Don’t fail to pay your obligations as they fall due
3. Don’t default on your monthly bills
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