You may want to cast yourself in the role of the Grinch this holiday season, with a leading broker identifying one credit-protecting rule to share with clients who’ll thank you later but probably not today.
“I have a book that hand out to all my clients that shows them what the score is, shows them what the benefits are, tells them not to go over 75 per cent of their (credit) limits,” Jeff Mayer of Dominion Lending Centres The Mayer Group said. “So what I would say is the best and biggest use of your knowledge would be credit … if you go 75 per cent above your (credit limit) you automatically become a risk.”
As the holiday shopping season heats up, many Canadians are chooseing to put large purchases on credit and brokers such as Mayer are taking the opportunity to educate them on habits that build rather than undermine that key rating.
The importance of staying below that 75 per cent ceiling is chief among the tips he shares, but there are others.
“(For example): You get a new immigrant who shows 815 points (on the beacon scale) but they only have one credit card and that’s a secure credit card,” Mayer said. “So, really, their score is great but the lender won’t lend to them because they don’t have a body of credit. So it’s important to educate clients (continued on page two).