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Dominion LenDing CentreS OUR HOUSE Spring 2017 >> 43 StoCkSy, iStoCk, CoUrteSy oF miCHAeL HALLett MICHAeL HALLett is a licensed mortgage broker with Dominion Lending Centres in Coquitlam, B.C. By geoFF Lee Maybe you've overextended yourself with credit card debt or consolidated all of your consumer debt into your mortgage. Perhaps you have reached the point where you just want to cancel your credit cards. Follow these three steps to keep your credit in check and growing. don't CAnCeL your CArdS It may seem tempting, but money lenders want to see that you can handle your credit responsibly. Instead, keep your two oldest credit cards (trade lines). The longer you have had a trade line that shows good payment history, the better it is for your credit. FoLLow tHe 2/2/2 ruLe Money lenders want to see two trade lines, for two years with a minimum of a $2,000 limit. Following this rule means paying these two cards on time each month for two years and staying within that $2,000 limit. uSe your CArdS reguLArLy— wItH CAre The two trade lines you keep need to be actively in use. If you are concerned about consumer debt, then have a monthly payment such as your cellphone, cable, or even Netflix account billed to your credit card. Then have that credit card paid automatically each month from your bank account to stay on track. ■ When it's time to renew or revamp your mortgage or purchase a new home, your credit won't hold you back. And you can bet dominion Lending Centres is here to help you get the sharpest rate and the best product. tHree wAyS to reBuILd your CredIt top terM Trade line: a trade line may include a credit card, line of credit, mortgage or other credit-related item provided by a financial institution or lender. looking for loans or new credit cards to bail themselves out. Another reason for recording inquires is identity theft. Hard inquires that aren't made by you could possibly be from a fraudster trying to open accounts in your name. only individuals with a specific business purpose can check your score. Creditors, lenders, employers and landlords are some examples of approved business people. the inquiry only appears on the credit report that was checked. Hard inquires remain on all credit reports report for two years, after which inquiries disappear. Soft inquires only appear on the report that you request from the credit bureaus and will not be visible to potential creditors. MytH 5 There is nothing I can do once a payment is late. FACt Creditors are always willing to work with you if there is a late payment. if they are notified in a timely manner, a late pay- ment can be easily removed. Just don't make a habit of it.

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