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How Are Credit Scores Calculated?

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Prime lenders see our credit score as a basis for mortgage approval. Whether or not they will lend us and offer us lower interest rates in our favor.

If you are hoping to purchase and you’ve just begun your mortgage loan, you must always be aware of the fact that you must convince your credit financial institutions and prime lenders that you are not a risky borrower.

However, imagine a scenario in which you have a poor credit report. Will you even be qualified to meet all requirements to borrow from lenders?

Does A Bad Credit For Mortgage Qualify?

When you are uncertain that your credit score might be too poor to even consider qualifying for a home or car loan or in case you’re unaware what is the lowest scoring range expected to purchase a home, calculating your credit score and knowing the standard scoring model should raise your confidence.

Studying the significance of your credit accounts will give you the improvements necessary to help you construct your credit before buying your foremost mortgage.

Here is a quick credit score range:

• 780-850 – Excellent and does qualify for best interest rates
• 740-779 – Very good and usually qualifies for best interest rates
• 720-739 – Above average and may face slightly higher interest rates
• 680-719 – Average score and may qualify for most loans at higher interest rates
• 620-679 – Below average and may qualify for most loans at significantly higher interest rates
• 580-619 – Poor credit score including some credit issues and will probably not qualify
• 520-579 – Very poor credit score with serious credit issues and unlikely to qualify for any loan
• 519 and below – Have detrimental credit issues and need to seek a credit specialist

What Difference Does It Make?

An Equifax or TransUnion credit report reflects how properly you manage credit and how prone you are to reimburse obligation.

Prime lenders and banks take decisions on whether they will grant you a loan based on your credit history and score. It will determine how much, how long, purchase price, and what rates you will be offered.

How To Boost Your Credit Score?

Fixing your bad credit image helps you to acquire a wide range of promising possibilities and build a reasonable amount of savings. Here are some tips to ponder on:

• Pay your bills on time
• Use credit ratios wisely
• Monitor your payment history
• Aim for a lasting credit
• Own diverse types of credit
• Avoid applying too many at the same time
• Make a dispute letter
• Resolve identity theft immediately
• Seek a bad credit mortgage broker
• Seek a credit repair specialist at creditrepairnow.ca

Does Having A Co-Applicant Better?

When having a hard time getting that approval caused by a poor credit score, and knowing there’s someone close to you having a better score, does it improve the odds of qualifying for an approval?
Prime lenders always take the lowest middle score from both the primary and co-applicant.

For instance, if your scores are 680, 700, and 720 and your co-applicants score is 740, 760, and 780, they will use 700 as a deciding factor.

Having a co-applicant only makes your application look better for lenders so that they may consider offering you reasonable rates. However, the primary applicant holds property rights.

Does Credit Score the Only Determinant?

Credit scores are not the only conclusive key to getting qualified. Lenders also take into account income, and current payable accounts as well as your loan type. Even if you have poor credit, this information can affect your eligibility for approval.

Final Thoughts

Bad Credit for getting a mortgage is still possible. Repairing and increasing your credit score can be worthwhile in your future applications. Keeping track of your financial assessment and checking your credit report helps you get progressive lower fixed rates and beneficial terms in the long run.


We are your mortgaging and credit repair experts for 9 years running with offices in and around Canada. Our expertise lies in credit rebuild and credit score assessment led by our founder Faizal Garasia, an authority both in credit relief and mortgage transactions.


Please call +1 647-373-9651 or email us at [email protected] to learn more.

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Best Strategies: Credit Repair Services and Bad Credit Fixes 2021

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We have dealt with credit repair services and bad credit fixes for quite some time now that it would be repetitive of us to deal with them all over again.

However, we are enjoining you to take a step back and re-read our previous blog posts so that you will have a better understanding on what these two are all about and how they are related to our current blog.

For credit repair services, visit this page page and have a read-through so that you will have a firmer grasp on this topic.

Once you have finished digesting our suggested blog post above, proceed to this page and get a better perspective on bad credit and how this affects your overall financial well-being.

On the other hand, if you cannot fight the itch to dive into the details of our latest post then read on by all means.

Quick Overview 1: Credit Repair Service

Credit repair service is a type of service that helps consumers resolve and repair their credit score ratings and win disputed erroneous credit details that are resulted in high penalty fees.

There are a lot of credit repair companies to assist you in improving your credit score. You have to be careful, though, of who and what you are working with because there is a preponderance of fraudulent credit repair companies lurking out in the open and on the internet.

Be observant about their claims in clearing your negative credit score in a short span of time (i.e., one week guarantee credit score repair). There is a possibility that you will enter into a sham instead and lose all your hard-earned money instead to these criminals.

If you are in doubt then vouch these companies against the updated official listing at Better Business Bureau Canada or check out other Canada government-recognized agencies that store and track reviews regarding reputable credit repair services.

Quick Overview 2: Bad Credit Fix

A low credit score equates to high-interest rates. Having a poor credit rating constitutes inability to repay your dues on time and fund mismanagement. This will adversely affect almost all of your financial dealings – from securing a personal loan to landing your dream job.

You may wonder, “Fishing for my dream job is compromised because of bad credit?” The answer is a resounding, “YES! It will!

The reason is too evident: companies –big or small –are using your credit scores to render decisions surrounding you as a responsible individual, your financial stability, your economic status, and most importantly your credit wellness.

If you are the type of person who shows financial responsibility and demonstrates knowledge on how to fix bad credit without compromising your self-worth then companies will have confidence in you and will hire you unquestionably.

If, on the other hand, you are the type of person who exudes poor financial decisions and always defaults on monthly payments then your chances of landing a decent job is slim.

Companies usually frown down on applicants whose financial records are irregular, insecure, and incomprehensible because they do not want to be involved with a person that could damage their reputation.

Strategies to Fix Bad Credit

Fixing your bad credit is not as hard as you think. You only need to follow the right procedures, have the right resources, and be patient. Raising your credit score does not happen overnight since it requires time and effort; hence, our suggestion is to start right away with a clear objective and 100% focus to get your credit score up as quickly as you possibly can and then wait for the results to surface.

We sorted these strategies to help you fix your credit and repair your credit standing with the least of effort:

  1. Get yourself a credit report

You are entitled to get a national free credit report every 12 months from each of the three major credit reporting agencies; namely, Equifax, Experian, and TransUnion .

  1. Find any errors and dispute them

Review your credit report history, your personal information on your credit card, your payment history, your outstanding balances, and your recent and past purchases.

Check every detail in your credit record and dispute any irregularities you find as soon as possible. File a report with your creditor if you encounter even a minute error in your account.

Never leave anything to fate or lack of initiative (on your part) or want in customer concern (creditor’s part).

  1. Review and improve your payment history

Your payment history comprises 35 percent of your credit score. This will give a negative impact on your credit score if you always make late payments.

Your mobile bills can also help in improving your credit score if you list it in your credit report.

Always pay your bills on time because this is your key to better credit reputation and to repair your credit score for good.

  1. Keep credit utilization at below 30 percent only

Credit utilization ratio is the amount of credit that you are currently using divided by the total amount of credit you have. Keeping it below 30 percent makes your credit score improve and fixes your credit profile.

  1. Stay away from hard inquiries

Hard inquiries happen when lenders start checking on you and on your credit. This is considered part of your lenders’ protocol and is commonly known as credit investigation.

What lenders do is they will check if (a) you are a voracious borrower from other sources (i.e., lending institutions, third party creditors, etc.), (b) you always or never default on your monthly payments, (c) you own other loans, and (d) your bank account has enough funds to shoulder your financial obligations.

The results from their scrutiny will appear on your credit report and, depending on their established findings, will either make or break your credit score.

Our suggestions: keep away from too many creditors, strengthen your financial discipline, and exercise prudence. Do this to build (or re-build) your credit reputation and re-instill creditor confidence.

Final Word

Good credit will help you get an easy life and win financial freedom. Following our outlined strategies will turn around your dire credit standing and make it face forward with confidence to show to your creditors.

Spending lavishly is devilish but managing finances wisely is prosperity made in heaven.

Creditor trust can only be garnered in earnest so you have to prove yourself to be financially worthy at all times.

Lastly, avoid the temptation of having too many creditors in your pocket. Instead, seek advice from a reputable credit professional to guide you properly in the right direction towards the use of money.


We are you specialists in mortgages and in credit score repair for 9 years running. Our office is located in Canada and is founded by Faizal Garasia, an expert in credit and mortgage matters.

Feel free to phone +1 647-373-9651 or send an email to [email protected] to learn more.

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How Does Payment History Affect Your Credit Score?

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Your credit score tells more about you as a person than what you actually think. A bad credit reputation stains your credibility not only as a creditor but also as an individual.

Your negative credit standing can destroy you, your dreams, and your aspirations and leave you desperately fighting for monetary and economic salvation.

Many borrowers have fallen into their own unintentional death traps by having too much money at their disposal but having too little financial acumen to properly manage their expenses.

Living thriftily is not their greatest strength and eventually, this weakness stalks them and hunts them down like bloodhounds sniffing out a criminal in a dense forest.

Our blog today will explore how your credit score is affected by your payment history. We will also provide tips on how you can become a wiser borrower and a more intelligent financial manager so that your liquid assets will remain intact and well-attended for years to come.

Let’s get the ball rolling! Read on…

Payment History Defined

Payment history has nothing to do with national and international events, political upheavals, or even the order of things as society would deem it. It is almost certain that all of the mentioned instances have, to a certain degree, finances playing a major role in them.

Our blog, however, has no connection with any of the mentioned circumstances. Instead, it has something to do with you – that is, your financial records regarding timely payments (i.e. credit cards, loans, insurance, etc.) and past due payments (i.e. overdue payments, accumulated accounts for collection, unsettled medical bills, etc.).

We are going to explore ways to “re-write” your payment history and improve your credit score. Our blog will likewise show you great tips to properly commit yourself into fixing credit problems properly so that your financial credibility will stand out.

How to Improve Your Credit Score

We will not beat around the bush so here are our great tips to improve your credit score. Go through them and follow each of their advice to remedy your ailing payment history.

a. Your accounts must be in auto-pay – make sure your future bills settlements are
set to auto-pay. This is most helpful to people
who are forgetful or are unable to pay on their
due date because they cannot personally attend
to them.

b. Check with your creditors – make sure that you and your creditors are in agreement on
how you will pay them back. Non-reconciled credits will not
appear good in your credit report; hence, your credit score
will be affected as well as your payment history.

c. Settle credit demand letters ASAP – creditors eventually send out demand letters to delinquent
borrowers urging them to pay immediately. It is imperative
to settle these letters of demand since non-payment
will result in a negative mark in your credit history and score.

d. Settle late payments within the 30-day grace period – late payments are normal; however, if
this ends up cluttering your payment
records then you will have a hard time
fixing them. Not only do they damage
your character but also incur interests
making them more difficult to address.
This will also affect your financial credibility since personal loans with bad credit
will reflect how irresponsible you are with
your money and to your creditors.

Brief Overview on your Calculated Credit Score

Your credit score is unlike any score that only require a series of accumulating numbers such that the competitor or party who rakes in the highest mark wins.

Credit scores are computed based on three elements; namely, interest, principal, and time.

We are going to delve into this right now:

a. Payment history (35%) – simply put: your payment history details your timely payments.
Unfortunately, both your late payments and accrued accounts
for collection are computed as well. This comprises 35% of your
overall credit score.

b. Credit utilization ratio (30%) – this comprises your available credit in current use. The higher
your ratio, the better your credit score. This comprises 30%
of your total credit rating.

c. Length of time to establish credit (15%) – this pertains to the number of years your credit
card account is in use. The more aged your card
is, the higher your credit ranking. This comprises
15% of your credit score.
d. Unadulterated credit accounts and inquiries (10%) – this pertains to lending institutions re-
questing or pulling a copy of your credit
report. Luckily, this has no effect on your
credit score. This comprises 10% of your
total credit mark.

e. Having mixed credit accounts (10%) – this pertains to you having multiple accounts open
or active at the same time (i.e. credit cards, multi-
purpose loans, credit lines, etc.). This tells creditors
that you are a diversified person in terms of your
finances – thus giving you a high score – and
increasing your credit score for getting a mortgage.

Final Thoughts

Credit score and payment history go hand-in-hand. Credit scores are affected by your payment history because your timely payments tell your credit score how responsible you are in settling your obligations.

There are tips we provided to help you understand what credit scores are and their relevance to your payment history. We also provided you with a bird’ eye view of how your credit score is calculated based on a number of factors that we enumerated in the latter part of this blog.

Remember that your actions and decisions regarding your money affect your plans in the future. If you are gunning for a mortgage loan then you have to iron out the kinks in your payment history and increase your credit score in order for you to proceed with your loan application without delay.


We are your best rebuild credit score agency in and around Canada. Our team of dedicated credit professionals led by our equally dedicated founder, Faizal Garasia, will assist in reforming your credit score in no time.

Contact us today at (647) 373-9651 or send an email to [email protected] for more information.

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Improve Your Credit Score FAST in 6 Steps

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Whether you like it or not, your credit score tells everything. It tells whether you are approved for a credit card or for a mortgage you have applied for. Interest rates are also affected on this matter: the higher your credit score, the better interest rates you receive.

A bad credit score is like a sore thumb that you cannot hide. It will cause you pain, make you feel uncomfortable, and require immediate relief.

This will affect your financial stature badly and prevent you from getting new lines of credit or securing the mortgage that you need most.

Our blog will provide you with instant economic wellness from your debilitating credit worries so that you can carry on with your business.

Our tips to improve your credit score do not require rocket science to understand but rather keen common sense and an open mind to value their worth.

Credit Score Defined

A credit score is a number that serves as an individual’s creditworthiness. Credit Unions and other lending companies measure several factors to determine the borrower’s capability to manage debt.

These include – but are not limited to – payment history, credit utilization ratio, length of credit history, types of credit, and new credit, to name a few.

The acceptable credit mark ranges from 350 to 850 points depending on the Credit Unions. The higher score, the better the chances of gaining a loan.

Your credit score contains no magic formula that will automatically improve your rating in a minute. However, by doing these easy tips, your credit standing will improve in a short period of time.

Read ahead and take note of our 6 strategies to quickly upscale your credit score.

6 Steps to Scale-Up Your Credit Score in a Jiffy

  1. Procure a copy of your free credit report
    • You can get a national free credit report from all major credit bureaus. This free yearly credit report is available through the website AnnualCreditReport.com or via their hot-line at 1-877-322-8228.
  2. Review your credit report
    • Once you get your credit report, check it thoroughly for erroneous entries and dispute all of the negative items in your credit advice. Look for inaccurate data such as name, address, and other personal information and report any discrepancies immediately. You also need to look at your payment history, credit limit, and outstanding balance.
  3. Dispute your negative data and erroneous accounts
    • This is related to number 2. Removing your bad credit history will help your credit score improve. We suggest writing a dispute letter to the credit bureau to ensure that they look into this at once and make sure that you also have a copy of the correspondence for future reference.. You have to do this because credit reporting agencies are mandated by the law to remove any disputable information that cannot be confirmed within 30 calendar days.
  4. Pay your bills on time
    • If you want to improve your credit score fast then paying your bills on time is the best way to improve credit score. Payment history has the biggest impact on your credit score rating and gaining a 35% payment ratio presents itself as a backlash to your credit history. We recommend avoiding late payments at all costs to improve your bad credit quickly.

(NOTE: Payment ratio is the percentage derived from current outstanding balance and from the number of payments made by the borrower.)

  1. Keep your credit utilization low
    • A credit utilization ratio is the amount of money that you are currently using divided by the amount of your credit limit. The credit experts say that you should only use at least 30 percent of your credit limit to maintain a good credit score. This is also one of the effective ways to better your credit and reestablish credit reputation with your creditors/lenders.
  2. Keep your old accounts open
    • If your bank does not charge you for an annual fee then rejoice and do not close your old accounts. The age of credit history in your old account also has an impact on your credit score.

(NOTE: The length of credit history comprises 15% of your overall credit score.)

How is Your Credit Score Assessed?

Your credit score is determined using scoring models that are gathered by the information on your credit report. This is generated by the three main credit bureaus; namely, Equifax, Experian, and TransUnion, respectively.

The table below show the factors involved in calculating your credit score:

• Payment history (35%)
• Amount due (30%)
• Length of credit history (15%)
• New credit (10%)
• Type of credit used (10%)

Final Thoughts

Improving your credit score takes time and there are many ways to improve it depending on your situation (i.e. financial capability, employment, credit standing, etc.).

The best thing you can do to resuscitate your weak credit rating for now is to follow your set payment schedule and maintain your monetary discipline all throughout your credit repair period and beyond.

Follow the tips we stated above to achieve your target credit score and avoid problems in getting new credit lines, acquiring better mortgage contracts, and in winning best interest rates.


We are you specialists in mortgages and in credit score repair for 9 years running. Our office is located in Canada and is founded by Faizal Garasia, an expert in credit and mortgage matters.

Feel free to phone +1 647-373-9651 or send email to [email protected] to learn more.

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