Beacon Scores range between Rejected to 900. 600 Beacon score is the mid range and is OK with some lenders. Banks will work with a 600 Beacon Score. What’s most important in your credit report is how well you are at paying your bills. And how much you owe.
• There is a rating called R1-R9: R1 is the best score, R9 means that your in collections. R2 means your 60 days overdue, R3 means your 90 days overdue, R4 means your 120 days overdue.
• Payment History: When your late paying the R factor will stay on your bureau for 7 years and drop off after that. So even if your late paying your credit cards 2 years ago, it will show up and you could be asked to explain why you couldn’t pay on time.
• Public Records and Information: If you have a judgment against your name then we can’t lend because it’s like a super lien so either your or the Lender will pay it off. All liens that are registered against your vehicles or property, show up in the public record. If you’re a guarantor for someone else’s debt, it will show up in the public records.
• Your Identity: name, previous addresses, date of birth and social insurance number show up on the credit bureau.
• Inquiries: This is everyone who has pulled your credit bureau for financing before. Technically if you apply for mortgage financing its meant to drop off after a month. Too many inquiries will look like your credit shopping, lender’s frown on that. Try to minimize how often your bureau is pulled because it can bring your beacon score down.
The advantage of working with a mortgage broker is that your bureau only gets pulled once and can be disclosed to more than one lender. This saves on multiple lenders pulling your bureau, which is what happens when you’re applying for financing on your own.