If you’ve been turned down for a mortgage by the bank or several banks due to your credit score, you can access your credit report and credit score from one or both of the credit reporting agencies: Trans Union and Equifax. If you own a business, they will likely look at both your personal and business credit profiles.
According to Equifax’s ScorePower Report, FICO scores range between 300 and 900, with a higher value reflecting stronger credit. Lenders such as banks will have a minimum good credit score of 650.
Missed or late payments or lots of “maxed out” credit accounts will lower your score. The best way to increase your score is to pay back debts on time and consistently. Lenders like to see a big gap between the amount of credit you’re using and your available credit limits. For example, getting your balances below 30% of the credit limit on each credit card can really help. Getting balances below 10% on each credit card is even better.
The credit reporting agencies also do not check the accuracy of the data feeds they receive from various lenders relating to your credit activity. Some credit bureau watchers estimate that there are errors in 10 to 33 per cent of credit files. If anything is reported in error, you will need to identify and report the error so that it can be removed and not damage your credit history or score.
If your credit score does not qualify you for a conventional mortgage, private mortgage lenders can help. That’s because private lending requirements are different from the banks, as they are based on your home’s equity. They can also fund faster: in a matter of days, not weeks while banks make you wait.