Lenders check for obvious red flags (collections, late or written-off payments), and then they
look for the “Three Twos.”
1) Two active trade lines
Have at least two active accounts. A mix is best (e.g., one credit card + one installment like a
car loan, mortgage, or line of credit).
2) Two limits of $2,000+
At least two of your accounts should have credit limits of $2,000 or more.
3) Two years of history on two accounts
At least two accounts should show 2+ years of on-time payment history.
These are general guidelines meeting them doesn’t guarantee approval, but they make your file
stronger.
Quick tips
Always pay on time. One late can hurt.
Keep balances low. Aim to use & 30–35% of your limits.
Don’t open/close several accounts right before a mortgage application.
About credit scores
Free scores you see online often come from TransUnion (e.g., through apps) and can differ
from what lenders use. Most banks in Canada pull Equifax and see a lender-grade score (e.g.,
Beacon 700). Scores also vary by purpose (car loan vs. credit card vs. mortgage), so don’t
worry if your app score doesn’t match what we see.
Please feel free to text, call or email me anytime with any questions.
