So, how’s your credit rating these days? Most of us don’t have a clue. But it pays to check your credit report each year. The reason? Those looking for a mortgage who have a lower credit rating can find themselves paying a higher interest rate, or even denied access to certain types of loans.

First off, you can have a peek at your credit report for free. Contact Equifax at www.equifax.ca or 1-800-465-7166 and Trans Union at www.transunion.ca or 1-800-663-9980. These free reports will not contain a credit score and it’s a good idea to get both reports. You can order more comprehensive reports including your credit score from these companies, for a fee.

The good news is that by taking a few basic precautions, prospective borrowers can protect their credit, and increase their access to better rates and a better choice of mortgage products.

Here are a number of steps that you can take to keep your credit rating healthy:

• Pay your debts on time – always meet due dates.
• Borrow only the amount you can afford to repay.
• Keep in mind that numerous inquiries for your credit report in a short period of time can worsen your score. A mortgage advisor will access your credit report and credit score just once before submitting any mortgage applications to lenders.

For those with credit issues, talk to a mortgage advisor, who can coach you on the ins and outs of improving your credit score over time – as your good credit history is established, in due course your borrowing options will increase.

If you wish to get a mortgage while you work on bettering your score, a mortgage advisor can also discuss how to get a mortgage despite weak credit.