How to Manage Your Credit Score

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I’ve had many coaching students raise concerns about their credit score taking a hit when they go through the pre-approval process for an income property.


While it’s true that financing your properties is like a chess game, where you should always be planning several moves ahead, which in this case means structuring your financing so you will be able to buy the next property and the one after that.


You should not be afraid of the way applying for pre-approval will affect your credit, as I explain in this video:



Optimize Your Credit

Here are my five most important things to consider when optimizing your credit for qualification (and managing debt):


Check Your Score
If something is amiss or incorrect, contact the credit report agencies to address any concerns or correct the information.


Make Payments on Time
It’s simple, don’t miss payments and don’t pay late. Consider automating payments.


Credit Utilization


Carrying a high balance can adversely affect your score. Keep your balance below 50% and ideally 30% or lower.


Types of Credit


Varying your credit is viewed positively by credit bureaus. Credit cards, installment loans, lines of credit and mortgages are examples of varied credit.


Consolidate Debt


If you have a high interest, high balance card, consider transferring the balance to a lower interest card.


Your Credit Score Breakdown:


Credit Reporting Agencies:


Canada – TransUnionEquifax


Check out a transcript of this video below:

Hey, Keyspire, Jason Witzell here, Success Coach. Over the years of coaching, I’ve had students raise concerns about their credit score taking a hit when they go through their preapproval process. For an income property. Of course, you should always be concerned about a drop in your credit score.
But let me explain why in this case, there’s nothing to worry about. Number one, it’s necessary if you’re applying for credit. If you’re getting you wanna get pre-approved for the purchase of an income property, then they’re going to pull your credit score. But number two, it doesn’t impact your score significantly.
So it’ll drop about seven to 10 points. It’s only temporary. It’ll come right back up. To where it was. So unless you are working with a number of mortgage brokers or going from bank to bank which I don’t recommend you do, then yeah, it’s gonna have an impact on your credit score. So what’s important is that you understand the factors that influence your credit, and that’s the key to managing your credit score and also building your credit.
Until next time, Keyspire, take care.

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Jason Witzell

Keyspire Success Coach, Jason, has been a real estate investor for over 20 years and is a Licensed Realtor in the Kitchener—Waterloo Region. His real estate investing portfolio has included student rentals, condos, multi-units, vacation properties, and private lending.

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