Tips for Keeping Your Credit in Check
Tips for Keeping Your Credit in Check
Tips for keeping your credit in check from your Trusted Mortgage Knowledge Professional
As the Christmas-spending bills are starting to roll in, are you wondering to yourself how you can keep your credit in check in 2017?
Whether you’re looking for a job, buying a new car or shopping for insurance, it’s always a good idea to review your credit report and ensure everything is in order. Whether the information in your report is accurate or not, any negative information can cost you – in the form of interest rates on loans. When it comes to your mortgage, this could end up costing you thousands. So, what should you do to keep your credit in check?
Keep track of your spending
While your daily purchases may appear small and insignificant, they can add up over the course of a month. It is important to keep track of everything, including:
- Cheques you’ve written
- All receipts from debit and credit card transactions
- ATM card usage
Review your monthly statements and report any discrepancies immediately.
Don’t exceed your limit and keep your balances low
Limit – Outstanding Balance = Available Credit
It is best to keep your balance contained within 30% of your limit, in order to maintain a good credit score. Charging more than 30% is potentially negative, even if you plan on paying off the balance when your statement comes. Why? Credit card issuers report the balance of the account when the statement closes. If the balance is high, your score will be affected, even if you pay your balance in full.
It is also a good idea to follow the 20/10 rule. By following this rule, you ensure that your debt never exceeds more than 20% of your total yearly income after taxes. Also, each month you should not have more than 10% of your monthly paycheques going towards credit payments.
Have an emergency fund
It is a good idea to keep a 15% cushion of credit available in case of an emergency, such as a loss of income or an unexpected expense. That way, you do not have to borrow more than you’re comfortable repaying.
Pay the amount you owe
If nothing else, pay your minimum monthly payment on time every month. By paying more than your minimum, or better yet the full balance owed each month, you will reduce the hefty interest charges associated with late payments.
DO NOT skip any payments.
Make timely payments
Making timely payments is the best way to establish yourself as a good credit risk to lenders. While certain bills do not get reported when you pay on time, they could end up on your credit report if you fall behind.
- Put all your bills in one place so you do not lose them or forget about them
- Make a list of bills that are due and the date that they are due
- Make payments a week before the due date
- Or, sign up for automatic payments
- Keep your contact information current
If your debt is getting out of hand and your numerous high monthly payments are making it difficult to meet all of your obligations, contact your local Tri-Cities Mortgage Broker, Milka Lukacevic of the Mortgage Centre TMK team.
Port Coquitlam Mortgage Refinancing Secrets for an Underwater Mortgage
Port Coquitlam Mortgage Refinancing Secrets for an Underwater Mortgage
There are more mortgage holders underwater than you might realize. An underwater mortgage is essentially when the balance of the owed amount of the mortgage is actually higher then market value of the property. This is the circumstance that a number of mortgage holders are facing. Refinancing an underwater mortgage might be the best way to help you save and qualifying is not as impossible as you might expect.
Here are a few secrets for refinancing your mortgage:
Just because you did not meet the strict guidelines for refinancing your underwater mortgage in the past does not mean that you won’t qualify now. Many of the strict guidelines for refinancing your mortgage have been lowered. This means that qualifying is much easier now. Don’t be discouraged from applying simply because you were disqualified at one time in the past.
The best way to ensure that you can refinance your underwater mortgage is to do research. You need to become more informed about the different government programs that are available and what the terms mean. Lower interest rates are what matter most to you, so this is where you need to spend most of your time researching. You can even get access to helpful eligibility calculators online that can assist you when deciding if you can qualify for refinancing your underwater mortgage.
Remember That Not All Lenders Are Created Equal
One secret that you can’t afford to forget involves that different lenders have different guidelines that applicants have to meet. Some lenders have more strict guidelines by nature and other lenders are looser with qualification guidelines.
Don’t Just Accept a Denial
Even if you get turned down by one lender, you should not just give of hope of refinancing your underwater mortgage altogether. You need to keep looking for the right mortgage broker that can help you refinance your mortgage. If you have an underwater mortgage chancers are the refinancing process will not be easy, but you should be able to find a lender that will eventually qualify you.
If you do the research and look for a qualified mortgage broker that is dedicated to helping you refinance your underwater mortgage, you should be able to save money and start to reduce the amount of debt that you currently face. An underwater mortgage can weigh heavily on your mind, but refinancing it and lowering your interest rate is possible.
Debt Consolidation & How It Can Help You Manage Your Debt
Is debt consolidation truly an option for helping you to become absolutely debt free? It is entirely possible. Consolidation is essentially the process of elimination through combination. This debt solution has worked for many Canadians. It could certainly work for you.
Before you make the leap, however, you will want to understand exactly what debt consolidation involves. You will also want to learn more about what the process will demand of you.
Can Debt Consolidation Help Me Become Debt Free?
Many Canadians struggle to keep up with their debt payments. To some, the process is akin to having a teaspoon to save a boat from sinking. Meaning that no matter what you do, the water seems to remain at the same level, and the boat is continuing to sink. Does this metaphor sound like something that matches up your current financial headaches?
This is where the idea of debt consolidation becomes intriguing. For all your Port Coquitlam Mortgage Broker needs choose a trusted broker, one that will help you get to more manageable debt payments that will actually lead you down the path to becoming debt free. Living expenses, high-interest credit cards, relying on credit/bank overdrafts, an inability to refinance your mortgage, or an abundance of payday loans are all reasons as to why you may need to take consolidation seriously.
Consolidating your debts is more or less designed to simplify things to the greatest possible degree. There are several ways in which you can accomplish this. A debt consolidation loan will often have terms specific to the concept of debt consolidation, and it will give you the money you need to pay off your various debts. However, if your credit rating is in less-than-perfect shape, you may have some difficulty in getting one of these loans. Not to worry, as there are other debt consolidation options readily available to you.
These additional consolidation options include seeking out debt management programs, filing a consumer proposal through a bankruptcy trustee, or talking to your creditors about debt settlement. With the last option, you are essentially making an offer to your creditors to pay back a portion of your debts as a lump sum, with the rest of the debts being written off as something you simply cannot afford to pay. A consumer proposal through a bankruptcy trustee is a possibility, but being approved for such a thing is going to depend on the nature of your debts. Debt management programs exist throughout Canada, and allow Canadians to consolidate their debts without actually borrowing additional money. This is because you will work with creditors to come up with a payment schedule that suits your budget.
Simply put, when it comes to debt consolidation, there is no question that you have options.
Is Debt Consolidation Right For You? << (Click here to find out more)
In the end, consolidation is an overall concept that is worth taking the time to explore. If you are truly overwhelmed by debt, and you see no way out through natural methods, the options available through consolidation can serve to finally give you the essential breathing room that you have been looking for.
What you need to be asking yourself as a First Time Home Buyer
As a first time home buyer in Port Coquitlam, you are probably really excited and ready to sign on the dotted line. However, before you agree to the final terms of a mortgage there are more than a few questions that you need to carefully consider.
These are the most important questions that you need to ask yourself as a first-time home buyer:
What Can You Afford It?
Before you even start the process of borrowing money to buy your first home, it is important that you know roughly how much you can afford. The amount that you can borrow and the amount that you can afford are not always one in the same. There are some instances where first-time home buyers qualify for a mortgage loan that actually exceeds what they can realistically afford. Working closely with a Port Coquitlam mortgage broker can help eliminate this problem and ensure that you get a mortgage that is affordable.
Do You Need to Get Pre-Approved?
Getting pre-approved for a loan is not the same thing as actually being approved for a loan. It can be a good idea to be pre-approved before you start looking at houses to purchase, but remember that you still have to obtain full approval. There is very little financial information that is used when pre-approval is given, so you still have a long way to go. Never mistake being pre-approved for a mortgage loan to mean that you have secured the loan in full.
Do You Know Your Credit Score?
As a first-time home buyer, there is no information more vital to you than your credit score. Your credit score is a huge determining factor in your ability to qualify for a mortgage loan and the type of interest rate that you obtain. A higher credit score is linked to lower interest rates. Getting a low interest rate on a mortgage loan is important, because the amount that you pay in interest over the life of the loan could be considerably less if the rate is even just slightly lower.
What Type of Mortgage is Best?
Mortgages can be pretty confusing no matter how many homes you buy, so when you are just starting out it is always a good idea to have a qualified and knowledgeable mortgage broker by your side. They can point you in the direction of the type of mortgage loan that meets your needs best.
Your Trusted Port Coquitlam Mortgage Broker
Your goal is to buy a new home , vacation home , even a rental home or to refinance your existing one. My goal, as your Port Coquitlam Mortgage Broker is to make it happen by helping you secure the financing you need. Together, we’ll work through your mortgage options until we find the perfect match for you. Simply call or email me, I am ready to talk about your mortgage virtually any time, anywhere. I am an expert when it comes to your Port Coquitlam mortgages, Coquitlam mortgages, Pitt Meadows mortgages, Port Moody mortgages, Burnaby mortgages, Vancouver mortgages, I work for ALL your mortgage needs.
As a Port Coquitlam Mortgage Broker, with over 15 years of lending experience, and many more in the banking industry, I offer you solid objective advice and am an industry leader in providing excellent service for all your residential mortgage needs. My knowledge and experience help me to quickly determine your mortgage requirements and allow me to provide you with creative financing solutions that work.
Whether you are considering buying a home, refinancing, switching lenders or purchasing a revenue property, you can expect the best rates, as well as fast, friendly professional service and a mortgage package that is tailored to suit your personal goals. Since I don’t work for a lender, I’m not motivated to lead you in only one direction. I’ll analyze your needs, shop the market for the best available deals, then recommend the one that fits your needs best.
Looking for a Vancouver mortgage professional to go above and beyond your expectations? I work for you, not the banks. Call me and experience the difference. That’s what TMK-Trusted Mortgage Knowledge Inc. is ALL about!