Mike's Spruce Grove Mortgage Blog


Credit Bureau scores have changed effective June 4th 2016 Monday, June 13, 2016

Your credit bureau score just changed on June 4th 2016.

It was an upgrade called ‘Beacon 9’ and it is meant to better reflect your payment and credit habits.

Here is some good news; If you have great payment habits, never come near your credit limits and don’t constantly create inquiries on your credit bureau, your score probably took a healthy increase.

If, on the other hand, you are late with payments, missed payments within the past 2 years, are constantly seeking credit, were over your limit on credit lines or consistently close to your limit, your score will probably reflect a lower number.

If you wish to apply for credit (for a mortgage or a credit card or vehicle purchase) and you are aware of some of the above problems, you need to take some steps to prepare.

1)    Pay down your credit card to less than 50% of the limit and treat it like your limit is half of the actual limit.
2)    If you can’t pay down the limit, ask the lender to increase your limit to create a space between your balance and your limit. Again, do not go any higher than your current balance.
3)    Do not seek credit or give permission to pull bureau reports to anybody, unless totally within the framework of your credit/purchase strategy.  Limit your permission to 3 times a year, maximum.  Equifax says they will not penalize for similar credit pulls within 45 days, but they may not be aware of the vehicle purchase connection with a bank vs a car finance place.
4)    Allow 2 calendar months for any adjustments of balance or limit to have an affect on your credit report. 
5)    Make sure all payments are up to date and even set up payments on an automatic debit plan.  This goes for phone plans too.
6)    This is important.  If you have a dispute over a balance, with a creditor, do not simply ignore your payment.  If you miss your payment (agreed or not) they win.
You need to communicate with somebody in authority to resolve the issue, no matter if it means waiting your turn in line or on the phone. Get your resolutions emailed to you or mailed to your.  Make sure it is in writing and make sure you get names.


 


posted by MIke Toporowsky at 4:22 pm

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About Mike Toporowsky AMP

Mortgage industry experience ... since early 1981

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