• Last Updated:
  • Nov 18th, 2006 11:20 am
Tags:
None
[OP]
Newbie
Aug 8, 2005
93 posts

FICO Score of 654

i just had a credit score checked via Equifax, and my score is 654.

which i don't think it's good enough.

ok, i understand i did late my payment few times, but i still pay it back after, people does make mistakes.

I'm wondering, what will benefit me if i want to increase my credit score? I'm looking to mortgage a house in about 6 months, so i really need some advise how i can boost up my score.

Also, will it help if i close down some of my bank accounts? I currently have 5 bank accounts, and 2 very high limit credit card.

I also have a car loan, which will be pay off in May, 2007.

Any advise that I can boost up my credit score? thanks.
I live in the POO!! the Province Of Ontario!!
16 replies
Deal Addict
User avatar
Dec 3, 2004
4005 posts
1566 upvotes
Vancouver
That score is about average. It's hard to tell what differentiates a 650 from a 700 and such. I would take a gander that 6 bank accounts open might not be good though. Two credit cards is great. Credit limit on them doesn't effect you unless you are using the credit. Loans will affect you, but once it's paid off it should help your score. Banks don't look at your score too much when you're getting a mortgage. They can also see the ratings for your certain cards, like R1 and stuff. So they can see if you were late on a few payments (no biggie) or if you really screwed someone over and never paid, ect. If you have had a steady job, recent pay stubs and tax assessmnets will be worth 10x more than your fico score.
Deal Addict
Sep 1, 2005
2469 posts
2 upvotes
go talk to your banker and see if you can get the mortage or what steps you would need to take to get it.

When it comes to mortages the really the debt service ratios (incomve vs payments/bills) and if you have any really bad performace on past credit.

from about 630 to 700 its all a grey area, your basically can be a typical canadian who has a bit of debt pilled up but pays your bills and can afford a hourse OR you've missed used credit in the past but not a horrible credit risk (yet?).

A lower score will prevent you from instant approvals on certian things, but for the big things (cars/homes) the banks look at alot more then just the score.
Deal Guru
Aug 2, 2001
13002 posts
3783 upvotes
I don't see the problem with an average score, it's not going to cause you any sort of problems.
Sr. Member
User avatar
Oct 10, 2006
908 posts
41 upvotes
Halifax
Thats a decent score for getting a mortgage. If your beacon is over 600 banks are usually happy. Higher the score you will find you can usually get a better rate.

I personally wouldn't worry about having to many bank accounts, getting any balances on credit cards below 80% of the limit is usually a decent way to squeeze out a higher score.

~C
Sr. Member
User avatar
Aug 2, 2005
746 posts
2 upvotes
Georgetown, ON
Most "A" lender's set their typical "automated approval" beacon score for mortgages at 680. This is set criteria for first-step mortgages and will get their electronic pre-approval, with conditions.
Obviously as noted above, many other factors will come into play as you move forward - what exactly constitues that score (length of credit history, utilization of available credit, etc.), employment stability and history, down payment and closing costs source and certainly debt service ratios.
As also noted above, any score above 600 can be sold to most lenders, but you may then get into higher downpayment requirements, higher rates or other conditions that would not be placed on the approval for an individual with a higher score.
The amount of bank accounts you have open should have absolutely no bearing on a mortgage apoproval. These accounts do not regularly show up on credit reports unless you have an overdraft there that is in a negative position for too long a period.
Your score, based on the applications I receive every day for mortgages, is quite good by comparison. Obviously, I do not know what constitutes your score, but from the outside looking in - the score is quite sufficient for initial mortgage approval.

Hope that helps!

Hubster
Sr. Member
User avatar
Aug 2, 2005
746 posts
2 upvotes
Georgetown, ON
The only free way I know of to get your score is to get someone who has access to the Equifax (or other bureau) system to pull your credit report.
This will count as a hit against your score but will not have too negative an effect in most situations.

Ask your bank if they would do this and provide you with the results. But be aware that most branch level employees don't even see your score (I believe), just a yes or no relating to an application.

Most mortgage brokers can do this for you also, but in some cases they do have to pay for every single report they pull. They may need some assurance of future business or a justifiable reason to do this for you.

Not sure that helps?

Hubster
Deal Fanatic
User avatar
Aug 19, 2001
5086 posts
27 upvotes
Vancouver
carpanatomy wrote:
Nov 17th, 2006 4:13 am
Any advise that I can boost up my credit score? thanks.
Why are you so anxious about your score.?? you obviously don't have trouble getting credit if you have CCs and a car loan.

What makes you think you'll be declined for a mortgage?? mortgages are the easiest loans to get.
[OP]
Newbie
Aug 8, 2005
93 posts
grant wrote:
Nov 17th, 2006 10:38 pm
Why are you so anxious about your score.?? you obviously don't have trouble getting credit if you have CCs and a car loan.

What makes you think you'll be declined for a mortgage?? mortgages are the easiest loans to get.
I have been declined for a $5000 line-of-credit recently, by Bank of Montreal.
I live in the POO!! the Province Of Ontario!!
Deal Fanatic
User avatar
Apr 6, 2003
8454 posts
8 upvotes
carpanatomy wrote:
Nov 18th, 2006 12:16 am
I have been declined for a $5000 line-of-credit recently, by Bank of Montreal.
And a mortgage is significantly easier to get than a $5000 loc.

I've been denied a $500 overdraft but been approved for a $140k mortgage the next week.
People who are in my gang: Nikita, Spidey, weedb0y, jcoltage, deep, pitz, Sylvestre, Icedawn, 3weddings, Ambermoon, CSK'sMom, jazzsax, bokep, matdwyer, Dash, KorruptioN, angekfire, sxz, WontonTiger, YYZFA, king_george, 45ED, sxz, Ojam

*WE GONNA GIT YOU!
Deal Fanatic
User avatar
Apr 6, 2003
8454 posts
8 upvotes
Hubster wrote:
Nov 17th, 2006 10:35 pm
The only free way I know of to get your score is to get someone who has access to the Equifax (or other bureau) system to pull your credit report.
Equifax will mail you your credit report for free, no score, but the report might give you a good idea of where you stand.
Hubster wrote:
Nov 17th, 2006 10:35 pm
This will count as a hit against your score but will not have too negative an effect in most situations.
This is wrong, equifax is a soft hit so won't affect anything at all.
Hubster wrote:
Nov 17th, 2006 10:35 pm
Ask your bank if they would do this and provide you with the results. But be aware that most branch level employees don't even see your score (I believe), just a yes or no relating to an application.
Now that would be a hard hit....

[/quote]
People who are in my gang: Nikita, Spidey, weedb0y, jcoltage, deep, pitz, Sylvestre, Icedawn, 3weddings, Ambermoon, CSK'sMom, jazzsax, bokep, matdwyer, Dash, KorruptioN, angekfire, sxz, WontonTiger, YYZFA, king_george, 45ED, sxz, Ojam

*WE GONNA GIT YOU!
Member
User avatar
Jul 29, 2006
314 posts
Westcoast Rep! (BC'e…
From Equifax Fico Score Info: from a recent credit report I got.

These are the four factors that affect your credit score:

1)"The length of time your revolving or non-revolving accounts have been established is too short"

2) "You have recently been seeking credit as reflected by the number of inquiries posted on your credit file in the last 12 months"

3) "The amount owed on your non-mortgage related accounts is too high"

4) "The length of time your accounts have been established is relatively short"

As a group consumers in your range 650 - 699 have a delinquency rate of 12% or 12 of 100 consumers would default on a payment.

The delinquency rate is the percentage of borrowers who reach 90 days past due or worse (such as bankruptcy or account charge-off) on any credit account over a two-year period.

Tips:It is a good idea to only apply for credit when you really need it. Meanwhile, maintain low-to-moderate balances and be sure to make your payments on time. Your score should improve as your credit history ages.

There is a whole whack of general info in the report... if you want more information let me know.


carpanatomy wrote:
Nov 17th, 2006 4:13 am
i just had a credit score checked via Equifax, and my score is 654.

which i don't think it's good enough.

ok, i understand i did late my payment few times, but i still pay it back after, people does make mistakes.

I'm wondering, what will benefit me if i want to increase my credit score? I'm looking to mortgage a house in about 6 months, so i really need some advise how i can boost up my score.

Also, will it help if i close down some of my bank accounts? I currently have 5 bank accounts, and 2 very high limit credit card.

I also have a car loan, which will be pay off in May, 2007.

Any advise that I can boost up my credit score? thanks.
Deal Fanatic
User avatar
Aug 19, 2001
5086 posts
27 upvotes
Vancouver
carpanatomy wrote:
Nov 18th, 2006 12:16 am
I have been declined for a $5000 line-of-credit recently, by Bank of Montreal.
Why? Poor credit, poor income, or unknown?

Closing bank accounts will have no effect on anything.

I don't know any way to raise your score fast. Longer term, I suggest getting another CC or 2. (others will disagree). Definitely keep your current CCs going. I fully pay off my CCs.

It goes without saying but let's say it anyways: NEVER PAY LATE. Late payments, especially sporadic ones, look terrible. They scream irresponsibility.
Sr. Member
User avatar
Aug 2, 2005
746 posts
2 upvotes
Georgetown, ON
ullyeus wrote:
Nov 18th, 2006 2:51 am
This is wrong, equifax is a soft hit so won't affect anything at all.
[/quote]

I advised him to get someone with Equifax access to check his credit, not an Equifax employee. The company this individual works for will show on his report as having done an inquiry. That is a hard hit.
× < >

Top