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You guys are great and thank you for understanding my credit problems and helping me finance my home, most other companies I’ve seen do not offer the level of service as you guys do. I had an excellent home buying experience, and will definitely recommend you to my friends and family.

    -Jeffrey Grove, Hamilton

Credit Applications

Credit Bureau's & Credit Scoring Print E-mail

Many do not understand credit bureaus and the impact they have on obtaining financing. The following information will help you gain a better understanding of credit bureaus.

Credit scoring is a quick and accurate method used for assessing credit risk. Your credit scores are based on your credit history and payment patterns. The score sums up your past payment performances and current usage of credit. This score shows the lender your level of credit risk. Keep in mind that the credit score doesn’t only include the negative credit information (i.e., late payments, bankruptcies, etc.) but it includes ALL credit information and is available upon request.

The past payment performance accounts for 35% of the credit score weight. The fewer late payments, the better. No negative information in your report is a good indication of a lower risk. The present situation has more of an impact as well. For example, a 30 day late payment by you today will have a greater impact on your credit score than filing for bankruptcy 5 years ago and having good credit ever since.

Credit utilization accounts for 30% of the credit score’s weight. Keep in mind that low balances on several credit cards are better than high balances on a few credit cards. Keep all balances on your credit cards at or below 30% of the available maximum credit limit.

Credit history accounts for 15% of the credit score's weight. The longer the accounts have been opened in good standing, the lower the risk. Avoid credit surfing as this will negatively impact your credit score. Keep your balances on your credit cards low! You should have one account that has been opened for at least six months in order to get a credit score.

Types of credit in use accounts for 10% of the credit score’s weight. If most of your accounts are with finance companies only, you may not be able to qualify for better credit.

Inquiries on your report account for 10% of the credit score's weight. If several credit cards are applied for in a short period of time and your existing credit cards have been charged to their maximum limits, looking for new credit at this time will only indicate a higher risk.

Promotional or administration inquiries shown on your credit report do not have an impact on your score. Only inquiries authorized by you for the purposes of new credit will impact your score.

Improving your credit score is really quite simple. Just remember to follow these easy steps:

  • Pay all your credit card balances off, or pay them down to at least 30% below the available credit balance.
  • Keep track of the number of credit cards you own. Keep the number conservative and don't close any accounts.
  • Review your credit report at least 90 days before applying for a mortgage or a loan. Check your credit report for any missing information and inaccuracies.

Your credit score will help lenders make more informed decisions and offer real benefits to you. Remember:

  • Credit scoring evaluates all applicants by the same criteria.
  • Changes in your credit performance will ultimately have an effect on your credit score.
  • Scoring helps make more credit available to the public.

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