Credit Score
Definition
A credit score is a three-digit rating between 300 and 900 that summarizes how reliably you have repaid borrowed money, and it directly affects which lenders and rates you qualify for.
How it works
Most prime lenders look for 680 or higher, and insured mortgages generally require a minimum of 680 for at least one borrower. Scores in the 600s usually mean alternative lending at a higher rate, and below roughly 560 the options narrow to private financing.
Payment history and credit utilization carry the most weight. Paying on time every time matters most, and keeping balances below about 30% of each limit helps considerably. Length of history, the mix of credit types, and recent applications make up the rest.
Scores can be improved faster than most people expect. Bringing balances down, correcting reporting errors, and avoiding new applications in the months before you apply can move a borderline file into prime territory.
Quick facts
- Prime lenders generally want 680 or higher.
- Payment history and utilization are the biggest factors.
- Avoid new credit applications while a mortgage is in progress.
Put this into practice
Still have questions about credit score?
Call for a free, no-obligation conversation about your situation.
(604) 780-5173