April 16, 2024


VANCOUVER ISLAND – As a mortgage lender, I always let potential borrowers know how important it is to build a strong credit score. This number represents your credit report and shows potential lenders how reliable you’ve been about paying back loans and managing debt. The higher your number, the more likely a creditor is to lend you money and give you more favourable financing. Did you know that a good credit score is just as important if you are looking for a business loan or mortgage?

It’s true—business lenders often require a personal guarantee for a commercial loan or mortgage.  Whether you run a sole proprietorship or are one of multiple owners of a company, having a good credit record is an important part of being a guarantor. Business loans also often require an annual review, including a personal credit check, so it’s important to maintain your score even after you’ve successfully received a business loan or mortgage.

To check your score, you can order a credit report from Equifax or TransUnion. Each uses their own method to calculate a score, so you may even want to order one from each to see how they compare. According to the Financial Consumer Agency of Canada, here are some of the factors that may impact your score:

  • how long you’ve had credit
  • if you carry a balance on your credit cards
  • if you regularly miss payments
  • the amount of your outstanding debts
  • being close to your credit limit
  • the number of times you try to get more credit
  • the types of credit you’re using
  • if your debts have been sent to a collection agency
  • any record of insolvency or bankruptcy

If your credit score is lower than you’d like, don’t worry. Talking to an expert can help you create a plan to boost your score. The single biggest way to improve it is to avoid late payments. You can also ensure you use your available credit wisely, avoid opening too many credit lines, and handle a mix of credit types responsibly. You can find out more at the Financial Consumer Agency of Canada.

Bev Murdock is a Mobile Mortgage Manager with Coastal Community Credit Union. If you have any questions about getting a mortgage, give her a call at 250.268.3194 or send an email to


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