Here I go again, talking about credit rating.  Why?  Because it is critical for you to get the financing you need in the first place and the best deal available in the second.  For those of you who have credit challenges, you may want to pay some attention to this blog.

No matter what your future needs may be, a new home, a new car, a new business, your credit will be a determining factor in your progress towards that goal. If you feel just a little insecure about your credit history, you should know that you don’t always have to feel that way. You have the option to make improve your credit. It will take a little time and much dedication, but once you commit to changing your credit history you will find that whatever sacrifice you may have to make will be well worth the benefits and prosperity you will experience.

1. One thing you can do to improve your credit is to consider your credit card balances. If all of your credit cards are maxed out or almost maxed out, you should work towards lowering the balance on your credit cards. When you lower the balance on your credit cards, so that you are only using 10-20% of the credit limit, you will notice an improvement in your credit rating.
2. The second thing you can do to improve your credit is to pay more attention to your payments. When you make late payments on your credit cards or any other bills it negatively affects your credit rating. Therefore paying your bills on time will help you to improve your credit rating.
3. The third thing that will improve your credit rating is to not apply for too many loans at one time. When you continuously apply for credit whether it is for car loans, mortgage loans or anything else, you shouldn’t apply to more than 2 or 3 lenders at one time. The less you apply for credit the more chance you have at improving your credit rating.
4. The fourth thing you want to do to improve your credit rating is to solidify a long history with your creditors. It is better if you have 2 or 3 creditors that you have been in good standing with over many years. This will strengthen your creditworthiness and improve your credit rating.
5. The fifth thing you want to do to improve your credit rating is to have a variety of creditors. It is best if you have a credit card, a home loan and a car loan rather than all credit cards. The variety in lenders will show that you are capable of receiving credit from all types of lenders with many different requirements.
6. The sixth thing you want to do to improve your credit rating is to have at least one paid off line of credit. Showing that you are capable to follow through with your payments all the way through to the end will greatly improve your credit rating.
7. The seventh thing you can do to improve your credit rating is to work towards having any negative reports removed from your credit report. You can do this by writing a deletion letter before you pay off the debt. This will give you room to negotiate the removal of the negative mark.

Anyone out there who may have a few more good ideas, let’s hear from you.  If you have any other questions, contact me today.

NB: – This blog is by Leo Lee AMP.  He is a licensed independent mortgage broker in Victoria, British Columbia, Canada.  Leo provides professional advice on real estate financing for residential, commercial and industrial properties.  Leo works for you, not the lenders. He is also an approved mortgage agent for the Tax Deductible Mortgage Plan (TDMP.  His blog and Web site are dedicated to providing the public useful and timely information on mortgages, interest rate, real estate, personal finance, money and the Canadian economy.