Friday, September 26, 2008

Beacon Scores Explained ... final words

Wrapping up our continuing series on the components that make up your Equifax Beacon Score, here are a few final tips.

Besides the obvious (bankruptcies, judgments, etc.) the top Beacon score killers are:

* Payments over 30-days late

* Maxing out credit cards (i.e. using over 75-80% of an available credit limit)

* Having only one kind of credit i.e. only credit cards with no instalment loans

If you have a lot of maxed out cards, bring them at least below 50% ofthe limit (below 30% is best). Your credit score can jump considerably in as little as a month.

The moral of this story is, know your own credit usage and check your credit report. One study suggests that over 70% of Canadians have mistakes on their credit report. Don't be afraid to check yours at Equifax Canada.

Look forward to seeing you again soon ... with all the action this week in the increasing interest rates and volatility in the markets, there's lots to write about!

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