Credit Improvement Services in Calgary, Alberta

 

At Concourse Mortgage Group, we understand the vital role a strong credit score plays in securing the best mortgage rates and terms. Located in the heart of Calgary, Alberta, our mission is to help our community enhance their financial health by providing tailored credit improvement services. Whether you’re looking to buy a home, refinance, or simply boost your credit score, we’re here to guide you every step of the way.

 

 

What is a Credit Score and How Does It Work?

 

How does a credit score work?

A credit score is a numerical representation of your creditworthiness. It’s based on the information in your credit report, which includes your payment history, amounts owed, length of credit history, types of credit in use, and new credit inquiries.

 

Key Components of a Credit Score:

  1. Payment History (35%):
    • Considers whether you’ve paid past credit accounts on time.
    • Late payments, collections, and bankruptcies negatively impact this component.
  2. Amounts Owed (30%):
    • Reflects the amount of credit you’re currently using relative to your credit limits.
    • High credit utilization can lower your score.
  3. Length of Credit History (15%):
    • The longer your credit history, the better your score.
    • Includes the age of your oldest account, the average age of all accounts, and the age of specific accounts.
  4. Credit Mix (10%):
    • Considers the variety of credit accounts you have, such as credit cards, mortgages, and installment loans.
    • A diverse credit portfolio can positively impact your score.
  5. New Credit (10%):
    • Frequent credit inquiries and opening several new accounts in a short period can lower your score.

 

Understanding Your Credit Score Range:

  • Excellent (800-850): You’re likely to receive the best mortgage rates and terms.
  • Very Good (740-799): You’ll have access to better rates and offers.
  • Good (670-739): Most lenders will consider you a good candidate for credit.
  • Fair (580-669): You may face higher interest rates and fewer credit options.
  • Poor (300-579): You may struggle to qualify for credit, or only receive very high interest rates.

 

Stay in Touch with your credit with TransUnion 

 

 

Common Questions About Credit Scores

 

Are credit score apps accurate?

Credit score apps, such as those provided by credit monitoring services, offer a good estimate of your credit score. However, they may not be identical to the scores lenders use because:

  • Different Scoring Models: There are multiple credit scoring models, such as FICO and VantageScore. These models may weigh factors differently, leading to slight variations.
  • Data Sources: Not all credit score apps pull data from all three major credit bureaus (Equifax, TransUnion, and Experian). This can lead to discrepancies if one bureau has different information
  • Purpose-Specific Scores: Lenders often use industry-specific scores tailored to mortgage, auto, or credit card lending, which can differ from the general score you see on an app.

Despite these differences, credit score apps can be an excellent tool for monitoring trends in your credit health and catching potential issues early.

 

 

Will my credit score decrease if it is checked?

The impact of a credit check on your score depends on the type of inquiry:

  1. Soft Inquiries:
    • Occur when you check your own credit, or a lender checks it for pre-approval purposes.
    • These do not affect your credit score.
  2. Hard Inquiries:
    • Occur when you apply for credit, and a lender reviews your credit report to make a lending decision.
    • These can slightly lower your credit score, usually by a few points, and the impact typically diminishes after a year.

To minimize the impact of hard inquiries, try to limit new credit applications and rate shop within a short time frame, such as 30 days, which is often treated as a single inquiry by many scoring models.

 

 

What is considered a good credit score?

In Canada, a credit score of 670 and above is generally considered good. Here’s a breakdown:

  • 300-579 (Poor): This range indicates a high risk for lenders. Individuals with scores in this range may struggle to get approved for credit.
  • 580-669 (Fair): A fair credit score suggests some credit difficulties in the past. Lenders may approve credit, but often with higher interest rates.
  • 670-739 (Good): A good credit score indicates a responsible credit history. Most lenders will offer credit at competitive rates.
  • 740-799 (Very Good): This range shows excellent credit management, and you’re likely to receive very favorable loan terms.
  • 800-850 (Excellent): An excellent score is rare and highly desirable, leading to the best terms and lowest interest rates available.

 

 

Steps to Improve Your Credit Score

Improving your credit score can significantly enhance your financial options, especially when it comes to securing a mortgage. At Concourse Mortgage Group, we offer personalized advice and strategies to help you boost your score. Here are some steps you can take:

 

  1. Review Your Credit Report Regularly:
    • Obtain a free copy of your credit report from each of the major bureaus annually.
    • Check for errors or discrepancies that could be harming your score.
    • Dispute any inaccuracies with the credit bureau to have them corrected.
  2. Pay Bills on Time:
    • Consistently paying your bills on time is crucial, as payment history is the most significant factor in your credit score.
    • Set up automatic payments or reminders to ensure you don’t miss due dates.
  3. Reduce Outstanding Debt:
    • Focus on paying down high-interest debts first.
    • Aim to keep your credit card balances below 30% of your available credit limit.
  4. Limit New Credit Applications:
    • Each time you apply for credit, a hard inquiry is made, which can slightly lower your score.
    • Be strategic about when and why you apply for new credit.
  5. Build a Positive Credit History:
    • If you have little or no credit history, consider a secured credit card or becoming an authorized user on someone else’s account.
    • Gradually build a history of on-time payments and responsible credit use.
  6. Keep Old Accounts Open:
    • The length of your credit history impacts your score, so keeping older accounts open can be beneficial.
    • Even if you don’t use the account regularly, maintaining a long-standing account can help improve your score.
  7. Mix of Credit Types:
    • Having a diverse mix of credit, such as a mortgage, car loan, and credit card, can positively influence your score.
    • However, don’t take out credit you don’t need just for the sake of having a diverse portfolio.

 

Check out the Equifax website to learn more.

 

 

Why Choose Concourse Mortgage Group for Credit Improvement?

At Concourse Mortgage Group, we are deeply rooted in the Calgary community. We understand the local financial landscape and are dedicated to helping our clients achieve their homeownership dreams. Here’s why our clients trust us with their credit improvement needs:

 

  • Local Expertise: As a Calgary-based company, we know the ins and outs of the Canadian credit system and how it impacts your mortgage options.
  • Personalized Service: We tailor our credit improvement strategies to your unique financial situation, helping you achieve the best possible outcome.
  • Comprehensive Support: From credit report analysis to actionable improvement plans, we’re with you every step of the way.
  • Community Focused: We’re committed to improving the financial health of our community, one client at a time.

 

 

Frequently Asked Questions

 

Can I improve my credit score quickly?

Improving your credit score is typically a gradual process. However, certain actions, such as paying down high credit card balances or correcting errors on your credit report, can yield faster results. Patience and consistency are key to long-term credit improvement.

 

How long does negative information stay on my credit report?

In Canada, most negative information, such as late payments or collections, stays on your credit report for six years. However, the impact of these items on your credit score decreases over time, especially if you demonstrate responsible credit behavior moving forward.

 

Will closing old credit accounts improve my credit score?

Closing old credit accounts can potentially lower your credit score, as it reduces the length of your credit history and could increase your credit utilization ratio. It’s often better to keep old accounts open, even if you don’t use them regularly.

 

How often should I check my credit score?

It’s a good practice to check your credit score at least once a year, but more frequent monitoring can help you catch potential issues early. Many people find it helpful to check their score quarterly or even monthly, especially if they are actively working to improve their credit.

 

 

 

Conclusion

Your credit score is a crucial element of your financial health, especially when it comes to securing a mortgage. At Concourse Mortgage Group, we’re here to help Calgary residents navigate the complexities of credit improvement. Whether you’re looking to boost your score before applying for a mortgage or need assistance correcting errors on your credit report, our team is ready to assist.

For more information or to schedule a consultation, contact Concourse Mortgage Group today. Let’s work together to improve your credit and secure the best possible mortgage for your future.