Understanding Credit

Understanding your credit score
To know more about credit and how to manage credit, a very good site to visit is:

Canadian Bankers Association
Understanding Credit http://www.cba.ca/en/section.asp?fl=3&sl=251&tl=254

It is advisable that each individual examine his/her credit report at least annually. Please refer to the following sites. Know what is on your credit report.

Equifax http://www.equifax.com/EFX_Canada/

TransUnion Canada
http://www.tuc.ca/TUCorp/home.asp

Improving your Credit Score
You can always improve your credit rating and maintain a good credit rating, if you observe the following:
* Pay your bills promptly
* Borrow only what you need and what you can afford
* Try to pay off loans on time and as quickly as possible
* If you are carrying a balance on your credit card, keep it under 75% of the credit limit. It is ideal if you do not carry a balance

Credit Counselling and Repair
In the mortgage application process, there are three parties involved: the borrower, the lender and the mortgage originator or agent. The borrower always wants the best terms; the lender needs to know that the borrower is qualified to receive the type of mortgage required; the role of the mortgage originator is to prequalify the borrower and supply as much information as possible to the lender so that an informed decision can be made.

One of the key pieces of information that is required before any mortgage application is approved is the Credit Bureau report. This information is very important in qualifying the borrower. If your credit rating is excellent, all things being equal, you will obtain the better terms. If your credit rating is bad, chances are you will not have access to the better terms.

You need to guard your credit jealously. However some of us did not for various reasons: we were foolish in our spending when younger, we lost our jobs, we endured a messy divorce, we simply have lost control of our spending, we have declared bankruptcy. For whatever reason, our credit rating has taken a hit and we now have bad credit. Consequently, you have been refused a mortgage by the banks.

Can your credit be restored?

Of course, it can. THEOS Mortgage & Finance can assist in helping you to restore your credit.

How can this be done?

The first step is to contact our office and book an appointment with one of our counsellors.

Bad credit? Can I get a mortgage?
While it may be difficult to secure a mortgage from one of the big banks, there are lenders who specialize in what is known as the sub-prime market. Obtaining a mortgage is definitely possible even with bad credit or in the instance of declaration of bankruptcy.

Other credit links
If you are in serious financial difficulty or need information to handle debt/credit, the following sites are great sources for credit education:

Dealing with debt http://strategis.ic.gc.ca/epic/site/bsf-osb.nsf/en/br01035e.html

Credit Counselling Canada - CCC
http://www.creditcounsellingcanada.ca/

Ontario Association of Credit Counselling Services - OACCS
http://www.indebt.org/