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Credit Clean-Up Before Going For Mortgage💳

When it comes to cleaning up credit, there is no better time than now to recognize the importance of your credit score and check if you are on track with your habits. To get started with your credit clean-up, there are a few things you can do:

  • Pull Your Credit Report:
Pulling your own credit report results in a “soft” inquiry on your report and will not affect your credit score.

  • If You Find Errors, Dispute Them:
When doing your annual credit score review, it is a good idea to go through line-by-line and confirm no errors. If you find any errors, report and dispute them immediately as they could be affecting your score.

  • Consolidate Your Loans:
Consolidating debt means reducing multiple loans to a single monthly payment, which typically has a lower interest rate allowing you to maximize spend on the principal amount.

Once you have put the effort into cleaning up your credit, you will want to keep it that way! A few tips for maintaining your credit and maximizing your financial future include:

  • Pay Your Bills:
You not only have to pay the bills, but you have to do so in full AND on time whenever possible. Paying bills on time is one of the key behaviours lenders and creditors look for when deciding to grant you a loan or mortgage. If you are unable to afford the full amount, a good tip is to at least pay the minimum required as shown on your monthly statement to prevent any flags on your account.

  • Pay Your Debts:
By removing the low debt items, you also remove the interest payments on those loans which frees up money that can be put towards paying off larger items.

  • Stay Within Your Limit:
This is key when it comes to managing debt and maintaining a good credit score. Using all or most of your available credit is not advised. Your goal should be to use 30% or less of your available credit. 


If you are ready to start your home-buying journey, or are looking to refinance your existing mortgage, IK Financial would love to help review your credit score and financial information to get you the most from your money.



IK Financial Mortgage Team operates on behalf of Mortgage Edge. Lic#10680
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2022-09-06 10:35