Personal Finance

Looking to increase credit

  • Last Updated:
  • Aug 28th, 2014 10:49 pm
Tags:
None
Newbie
Jun 17, 2012
13 posts
TORONTO

Looking to increase credit

Hey guys,

I have a CIBC credit card with $1000 dollar limit. I am currently working with a mortgage agent (as I am looking for a new home) and they're telling me to get more credit as I wish to purchase a house soon. My credit is 697 and I make 60k a year. Is there a credit card that's recommended that could help?
5 replies
Deal Fanatic
Mar 24, 2008
6278 posts
2753 upvotes
Toronto
imanewbie1 wrote: Hey guys,

I have a CIBC credit card with $1000 dollar limit. I am currently working with a mortgage agent (as I am looking for a new home) and they're telling me to get more credit as I wish to purchase a house soon. My credit is 697 and I make 60k a year. Is there a credit card that's recommended that could help?
One credit card should be sufficient for you to obtain a mortgage. What they are recommending is for you to get a different type of credit (line of credit or loan). I don't think you need to apply for more credit as additional credit inquiries will temporarily (~6 months) lower your credit score. Here is what I recommend:

1) Don't spend more than $200 of your $1000 limit on your card.
2) Make credit card payments on time.
3) Save a higher down payment than you currently have (having more than 20% will help you keep costs down).

You don't need 5 different credit cards to qualify for a mortgage with a 60k income and 700 score.
Newbie
Jun 17, 2012
13 posts
TORONTO
ksgill wrote: One credit card should be sufficient for you to obtain a mortgage. What they are recommending is for you to get a different type of credit (line of credit or loan). I don't think you need to apply for more credit as additional credit inquiries will temporarily (~6 months) lower your credit score. Here is what I recommend:

1) Don't spend more than $200 of your $1000 limit on your card.
2) Make credit card payments on time.
3) Save a higher down payment than you currently have (having more than 20% will help you keep costs down).

You don't need 5 different credit cards to qualify for a mortgage with a 60k income and 700 score.
I appreciate the feedback. Quick question, wouldn't it be faster to just improve the score and get more credit for the time being instead of trying to get 20% of a mortgage?
Newbie
Jun 3, 2013
77 posts
12 upvotes
Apply for a 5K RRSP Loan at CIBC. The rate is good 4%. Use your tax return on may2015 to refund a % of your loan or use your refund in addition to your down payment.
Sr. Member
Mar 4, 2007
739 posts
734 upvotes
Halifax
imanewbie1 wrote: I appreciate the feedback. Quick question, wouldn't it be faster to just improve the score and get more credit for the time being instead of trying to get 20% of a mortgage?
20 percent should be the MINIMUM these days. Like that other user said, focus on that instead of your credit score right now.
Deal Addict
Jul 11, 2010
1294 posts
329 upvotes
Toronto
Your credit score is fine. As mentioned try to keep your balance at 30% or less and make sure your payments are in before the due date.
Lenders generally look for 2 trade lines. You have one with the credit card. Getting a line of credit was mentioned above. This would be a good one to have and would be your second trade line. The reason 20% downpayment was mentioned is that you would not have to pay CMHC mortgage insurance fees. If that is unrealistic then try to get a mortgage with terms such as being able to make lump sum payments against the principal during the year and/or increasing your payment amount. This would reduce your mortgage balance faster.
Doug Boswell
i

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)