Here is some information to help you increase your credit score and give yourself leverage when applying for a mortgage.  Excellent credit scores opens many doors in your lifetime with benefits such as saving money(by getting the best interest rate for your mortgage), getting a mortgage with no down payment (zero down), having more lenders to choose from and your freedom to endless financial possibilities.  Below are some quick tips on how you can improve your credit score and prepare for a mortgage.

1. There are two major companies who hold your credit reports are Equifax and TransUnion.
   
2. Credit scores range from 300-900 (you need at least a 680 to qualify for the "zero down" mortgages, as these are CMHC and Genworth's criterias).
   
3. Payment History is worth 35% of your total score. Be sure to make payments on time, the longer past due, the lower the score. Frequency is also a factor, the number of times you are late. This also applies to bankruptcies, liens and judgements.
   
4. Amounts Owed is worth 30% of your score. Are you maxed out on all your credit cards? If you don't want to have this affecting you then be sure to use only 75% of your credit limit. If your limit is $5000 don't use more than $3750 or it will affect your score.
   
5. Length of Credit History is worth 15% of your score. How long have you had your loan/credit card for? Have you been using your credit cards recently?
   
6. New Credit is worth 10% of your score. Make sure you do not apply for credit too often. Newly activated accounts may lower your score. Also, make sure you do NOT have your credit checked too many times. This will lower your score. They want to make sure you are not living beyond your means.
   
7. Types of Credit you use are worth 10% of your score. Watch out if you have several credit cards with high limits. This could mean that at anytime you can max these out and have financial hardship, because unlike installment loans, you do not need re-approval to reach the maximum limit. NOTE: If you are the person who likes paying with cash, make sure you use your credit card at least once a month to boost your credit score.
   

For further guidance, needs analysis or a free consultation, one of our XPX.ca Mortgage Specialist will be glad to help you with your needs, just click below.  (If you would just like a free credit check to see where you stand, say so in the comments section)