Credit Score Optimization
Your credit score is vital when it’s time to get approved for a mortgage. It’s no secret that the better your credit score is, the higher the chance of you receiving a better rate offer. Here are some money management tips to improve your credit score and your chances for a mortgage approval when you are ready to invest in your next home or investment property.
Optimal utilization strategy.
Pay off those “store” credit cards, especially if they are at, or over the credit card limit.
If you have multiple credit cards and if one of them is carrying a large balance (perhaps you are collecting points on it etc), then your credit score could be lower when compared to spreading it over multiple cards. If you can reduce the amount on that one particular credit card with the large balance, this will greatly help improve your credit score.
The Statement Date Strategy
Pay your credit card bills by statement dates (not the due date). Majority of the time it’s the balance the on that statement date that is submitted to the credit bureau. Plan your bills accordingly and pay them in the correct order using the statement date strategy.
Pay it Down Strategy
Here’s my last tip on improving your credit score quickly...
Pay down your credit cards and keep them down — pretty straight forward right?
In the past, an ideal way to keep your credit score in good standing was to pay your credit cards within the grace period for when your bill is due (for the most part that’s still a great thing to do). You can enhance it a step further and actually pay down your cards before the statement comes out and pay it in full for a better boost to your credit score.
When you take this approach, the balance being reported to the credit bureau based on your balance from your statement will be of minimal effect!
If you are ready to apply for a mortgage or planning on entering the market within the next few months, we invite you to connect with us a Sangha Mortgages to build a bespoke plan to improve your chance of approval and better mortgage rates for when it’s time to hit that GO button!