If your credit is less than stellar, applying today may actually make your credit worse.

Don’t get me wrong, I’m not saying don’t apply.

I’m saying, don’t apply yet.

Do you suspect there may be an issue with your credit, if so, you’re better off pulling your bureau yourself. Your score will not be harmed by inquiries into your own credit report. Whereas, if you apply on line or in person, you have pretty much agreed to have your credit bureau pulled by a third party.

To have your credit pulled today only to be told that your credit’s not up to snuff, is less than productive. As per my previous blog on credit, frequent inquiries can have a negative effect on your score.

So what should you do?

Regardless of whether you suspect an issue or not, you should pull your credit at lest once a year. You may be surprosed to learn that almost 80 percent of people have errors on their credit reports, 25 percent of which are serious enough to cause a person to be turned down for a job or a loan.

Though your payment history accounts for about 35 percent of your credit score, late payments within 6 months have the greatest impact on your score. You might also be surprised to hear that collection companies are notorious for keeping poor records. If you have an account in collections, you might want to send a letter to the collection company asking them to provide verification that the debt in question is yours. If a collection company is unable to verify your debt, they must remove the item from your credit report.

If you think you may have a late payment or collection on your credit bureau, instead of applying, go to www.Equifax.ca and follow along with the video below.

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com