Improve your beacon score – Part 1

Whether you have poor credit, excellent credit or something in between, there is always room for improvement on your beacon score. 
 
For starters, and most obvious, make your payments on time.  Whether it’s a credit card, mortgage or personal loan from your bank, it is fundamentally important to keep your payments from becoming overdue.  About 35% of your score is based on this category.
 
How much do you owe?  It is important to ensure that you are not maxed out on your credit cards.  Keeping your balance at or below 75% of your limit will bode well for a good beacon score.  Some people feel that they can go up to their limit and pay down the whole amount every month.  The problem with this is that you never know exactly when the creditor is making their report to the credit bureau.  They may report a day before you bring your balance to zero.  Then even if you pay off your balance, the damage is already done.  About 30% of your score is based on amounts owed.
 
Later this week – Improve your beacon score - Part 2.

Guest post by Ken Wiebe, Mortgage Broker. Click here to contact Ken.

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