Thursday, September 11, 2008

Beacon Score Basics for Mortgage Hunters

Your Equifax Beacon Score tells lenders how much of a risk you are, and hence it determines how much you'll pay for your next mortgage. So it's important to know what affects it.
Beacon scores range from 300 to 900 (a perfect score). The averageCanadian adult has a Beacon near 720. Many people think you need to be in the 800's to get great mortgage rates. That isn't the case. Only 11% of Canadians rank above 800, and it's virtually unheard of to see a Beacon near 900. All you really need is 720 or above to get the best mortgage rates. Even 680+ can get you a great deal.
If your score is below 650, you're what lenders call a "B" client (i.e. there's issues with your credit that banks won't like). 1 out of 5 Canadians are in this boat, but don't despair!
Assuming you want to improve your credit (and who doesn't?) you should know how the Beacon formula is calculated.
Check back with us in a couple of days for a primer on the caclulation of your score.

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