What determines whether or not you get approved for:

·         The home renovation loan?

·         New vehicle loan?

·         Credit card?

·         Department store credit card?

Don’t know what a credit score is?

By definition it is…..

A judgment of your financial health, at a specific point in time; your credit score indicates the risk you represent for lenders, compared with other consumers.

Plainly put:

Your credit score is a direct reflection on the amount of debt you have, your payment habits and your past history with credit.

How does one obtain and maintain a credit score? If you have credit, you will want to ensure you make your monthly payment (s) on a regular and on time basis. Keep your balance below your available credit or use and pay off what you use every month.  This will ensure lenders that you are always within your limits. In other words, you should always show you can afford to pay for the credit and loans you have outstanding.

What are considered Canadian scores and who are the reporting agencies? In Canada, we have scores that range from 300 to 900. Obviously, the higher your score the more likely you are to obtain credit from lenders. The area that most Canadians fit into is 650 – 750.You can obtain your credit score though two main reporting agencies, Trans Union and Equifax. These two agencies are what most lender use when determining whether or not to lend you money. You can obtain your report by either going to their web site or contacting them direct via phone.

How vital is it to live and spend within one’s boundaries? It is extremely important that you remember to always live within your financial ability. Credit is something that can be widely available. In some cases, only you can determine whether or not it is wise to take on more debt. I f you are looking to purchase a home, most lenders determine if you can afford a home by looking at you “debt service ratio”. This is the amount of money you bring in “income” vs. the amount of money you owe. It is very important you find out what the procedures of certain lenders are before you chose to borrow from them. Never take on more that you can financially handle, no matter how tempting the offers may be. Remember, you only get one shot at obtaining a good credit score. If you miss payments or fail to pay it could cost you……

Thank you for reading this first segment of my Leasebusters Lease-Blog. We at Leasebusters encourage you to make your comments and we will publish your thoughts and continue these informative segments based on your participation and encouragement.

Happy motoring – leasing – financing – owning and enjoying…..

Colin O’Neill

Dealer Account Manager