Bad Credit Interest Mortgage Rate

Building a Good Credit History Is More Important Than You Think

If you were ever turned down for a loan, charged higher interest rates, or had a landlord refuse to rent you an apartment, it could be because of your credit history.

Your credit history may make you appear to be a bad risk, or indicate that you sometimes have trouble making your monthly payments. Maybe you never had credit before, so there is no track record of how you pay back money you borrowed. Or maybe - without knowing it - you were a victim of "identity theft", which affected your credit rating.

Many Canadians - especially newcomers to Canada or students - who do not have much experience with credit would be surprised to learn how crucial it is to build and maintain a good credit history if you want to qualify for a mortgage or other types of loan.

To help consumers understand the ins and outs of credit, the Financial Consumer Agency of Canada (FCAC) has developed a useful booklet called Understanding Your Credit Report and Credit Score, which you can obtain at no cost by calling FCAC, toll-free, at 1-866-461-3222, or by visiting the Agency's Web site: www.fcac.gc.ca

Know how credit reporting works

Three major credit-reporting agencies in Canada - Equifax, Transunion and Northern Credit Bureaus - keep a file on consumers, called a "credit report".

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Protect your good name
What's more important than protecting your good reputation? How about that pristine credit record you've worked hard to keep clean? Your credit history determines what interest rates you pay on credit cards and a mortgage, and even how much you'll shell out for auto or homeowner's insurance in some states.

Sadly, identity theft is becoming more common, with crooks fraudulently running up credit card or cell phone accounts, passing bad checks, or getting a loan in someone else's name. With a quick phone call and a trip to the Xerox machine, you can create a cocoon around your credit file while the coffee brews in the break room.

Not paying mortgage will result in kind of attention you don’t ...

Q: Ive had a home-equity loan for eight years. Six months ago, I called the mortgageservicing company to ask for the payoff. The toll-free number on my bill wasnt working, so I decided to stop paying on the loan to force them to contact me. Still, no one has called. What should I do? A: When you stop paying a mortgage, several bad things happen fairly quickly: You trash your credit history and credit score, late penalties and fees are tacked on, and you can trigger "universal default" on your credit cards. If youre carrying creditcard debt, your interest rate could skyrocket. No one is going to call you back from this mortgage-servicing company until its too late. The next call you get will be from the foreclosure department, telling you that it is starting foreclosure proceedings. Or you might not even get this call.

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