Mortgage Centre


Tracy Irwin

- Mortgage Broker

Mortgage strategies - Credit Score, Credit Rating

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mortgage Strategies - Credit Score

Is Your Credit Rating Hurting or Helping Your Financial Health?

Credit Rating - watch video

Newcomer MortgagesWarning:   Your Credit Rating Could be Hazardous to Your Financial Health

Your credit rating or beacon score is the single most important factor in determining how much money you can borrow.  It is critical in these economic times to protect your score to keep all your financing options available.  Learn tips on how your score is determined, as well as how to improve and “recession proof” your credit rating.

Did you know that your beacon score or credit score is the single most important factor in determining your borrowing capacity for either a mortgage, car loan, credit card application, etc.?  Many of us have never heard the term or have any idea what our score is.

A credit score is a tool used by credit grantors to determine your ability to repay your debts.  The information on your credit report is compared and evaluated against other consumer credit reports which gives you a credit score ranging from 350 (highest credit risk) up to 800 (lowest credit risk).  A higher score means you are less likely to make late payments or default on the credit extended to you.

The guidelines used in determining your score include:

  1. payment history (35%) – paying your bills on time is the single most important factor in obtaining a high credit score.
  2. how much debt you carry (30%) – keep your credit cards low to keep a high credit score.
  3. length of established credit (15%) – the longer you have had the credit cards, the higher your score.
  4. applications for new credit (10%) – a high number of credit inquiries will lower your score.
  5. your credit mix (10%) – open only credit accounts that you intend to use on a regular basis.

Knowing how your credit score is determined can help you manage your debts to optimize your rating.

With the dramatic increase in identity theft, it is extremely important for everyone to check their credit report on an annual basis, especially when there has been a change in marital status.  Here are two resources that you can use to check your credit rating: 

  1. Equifax Canada ~ 1-800-465-7166 ~ 
  2. TransUnion ~ 1-866-525-0262 ~ 

Make sure that your credit is in perfect health and working for you so that the next time you want to purchase your new home, refinance or buy a car – you don’t end up in the emergency room! 

See related 5 C's of credit information.

Call for personalized mortgage consultation
For your personalized complimentary consultation,please contact Tracy Irwin at toll-free number 1-866-797-7616 or contact her online at

Financing your mortgage loan needs in Stoney Creek, Burlington, Waterdown, Oakville, Hamilton, Ancaster and Dundas, Ontario.

R.D.M. Financial Consultants Ltd. Brokerage Licence # 10716 Each Mortgage Centre office is independently owned and operated