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You don’t necessarily have to have a platinum credit rating to get a great mortgage rate, but a good solid credit rating is essential for you to get approved. First of all you need to know what your credit score is, and there are several ways to do that.

There are several common mistakes many people make with regards to their credit rating. One of the most common is that they forget to make their minimum payments on time. For example, if you have a credit card balance of $200 from your last statement, and the minimum payment requirement of $20, you need to make the minimum payment of $20 on time. Instead, many people will miss the minimum payment of $20, but they’ll pay $150 next month. That’s not good as far as your credit rating is concerned. Lenders want to see that you are making your payments on time as agreed, and the credit card agreement calls for making your minimum payments every month.

Another thing that can help to improve your credit rating is to make sure that you don’t exceed 75% of your maximum credit limit. For example, if your credit limit on your visa is $5,000 and you spend $5,000 this month, your credit rating will not be as good is if you only spend $3,000 or $4,000 a month. Don’t worry, most banks will increase your credit limit automatically if they see that you are spending close to your limit and consistently paying the balance off.

Something that most consumers don’t realize is that every time you apply for credit it typically affects your credit score. The theory is that the more times you apply the more desperate and un-credit worthy you are. Fortunately, this has changed recently and the credit rating process now recognizes that consumers do shop around. Now if you have the same type of application or industry looking at your credit within a 30 day period it will no longer affect your credit score.

It is also important that married couples each maintain an individual credit history rather than using a secondary card on a joint account.

Most financial institutions want to work with you, but if you’ve damaged your credit rating in many cases they have to follow the rules of the company. If you can’t make your minimum payment always call your creditors and explain your situation on time. Check your credit rating regularly. You can get free credit reports through the mail from either Equifax Canada or TransUnion Canada, and you can order them online for a small fee.