• Brandon Nishi

Credit Score Secrets

Everyone's been told at a young age that your credit score is one of the most important things in the world. What they never tell you is how to maintain a increase your credit score, and what to do mortgage wise if your score isn't high enough.


Key Points:

  • Breakdown of your credit score

  • How to get approved with low/bruised credit

  • How a mortgage specialist can get you approved when a bank can't



Breakdown of your credit Score

  1. (35%) Payment History: How well do you pay back your debt? (Credit cards, student loans etc.)

  2. (30%) Credit Utilization: If you have a credit limit of $10,000. Do you only utilize 10% ($1,000), or do you utilize 90% ($9,000). If you are maxing your credit cards each month, you're considered 'higher risk' which can lower your credit score!

  3. (15%) Credit History: The longer an account is open, the happier the credit bureau will be. They love seeing a long history as this shows you can maintain credit long term.

  4. (10%) Public Record: Bankruptcy, consumer proposal, repos. Depending on the severity will impact how much it'll affect your score

  5. (10%) Inquiries: Are you applying for a credit card every week or every few years?



How to get approved with poor credit


A lot of people don't understand that there's different tiers in lending, and each bank has different lending guidelines. Each lender assess risk differently, and it's just understanding what's the best place with the lowest rate.


To put simply, there's 3 groups of lending:

  • A-lending (Big banks, best rates)

  • B-Lending (lenders that have easier guidelines, ok rates)

  • Private lending (highest rates)

I've been in the lending industry for quite some time, and I've seen many cases where a homeowner would go to a 'private lender' when they can easily fit into a A-lender or B-lender. How come?


A lot of other brokers/homeowners assume that see bad credit, low income, previous delinquencies mean that they won't qualify. The easiest way is to go through private lending (High interest rates). This is 100% untrue. With some A-lenders, they have their own internal ranking. This means they don't look at just your credit score to assess risk! I've approved customer where their credit scores are below 600. Also, banks have different policies and programs that may not fit at one bank, but would fit at another. Trust me, it sounded completely absurd when I first start brokering.



How a broker can get you approved


Having your been denied by the bank and you're tired of renting? Let's talk and find out how to get you approved. My service is 100% free, and my team and I have helped thousands of families become homeowners. Let's get you pre-qualified today!