Hi Mehmetm Thank you for sharing your experience with Capital One. It is very helpful to know that they do what they say. I heard of the multiple payments technique, which is supposed to increase your credit score. It is a very interesting topic, and I will try to address it on my blog...

That's right, Jason. Two trades are very important. That's why I was told my RTO tenants to get a department store card, followed by a bank credit card 6 months later. Then when they reached 12 months of active credit history, they were able to qualify for mortgage. In the Fall of 2008 yet...

Dave, Good to know about Citizensbank reporting on secondary cardholders. That is a good way to help your spouse or teenage children of qualifying age to develop credit skills. I do have good news for you! I spoke with Capital One, and they do report to the credit bureau on their...

Yes, indeed, Wanderer! A good mortgage broker is a key relationship to create when it comes to helping the future buyers of your property to establish a solid credit file. Some people use credit clinics, but unless your RTO tenants have a very complicated situation, a mortgage broker should be...

Rent to Own tenants need to qualify for a mortgage when the option term is up and they are ready to buy the property from you. Some of them have little or bad credit history. So how do you prepare your tenant`s credit? In the past, it was easier. Prior to the credit crunch of 2008, I helped...

Just be aware that the readvancing is not always automatic. If I am not mistaken, Scotiabank does not automatically readvance the funds in its STEP program, meaning that you would have to apply for "readvancement" each time you build up enough extra equity in your house.

Greg, Declining candidates with no credit history is the matter of choice, and tolerance for risk. Financial institutions have various risk tolerance, so do the landlords. One bank may approve a customer with Beacon score of 640 for a credit card, whereas another bank requires minimum of...

Good points Jason! 1 - I know many investors with student rentals use this approach, and I think it is a very good idea. Harder to implement when you deal with older tenants. I am surprised how many renters reach their 40s and 50s and still have no credit history. I guess credit mentality...

Adam, Thank you for your comment. I agree that 2 years may seem like an arbitrary number. The logic is simply that if a tenant has a tendency to keep moving every year, I have to ask why. And, of course, I don't want to have to start all over again in 12 months painting the unit, paying my...

Alvaro, I appreciate your feedback on my post. I find it interesting hearing what other landlords have done. And of course as a 14+ year veteran in credit portfolio risk management, I have the added background in managing risk which is a large part of our business. Tenants are our greatest...

Renters ... we, the landlords, need them because without them our business has little purpose. Having performed hundreds of analytical exercises over years, I must say that the mindset of a tenant vs. that of a homeowner is phenomenally different on the aggregate. Even at the same Beacon...

Hello Bart, If you already own rental property by yourself, it could work very well to share with your friends and family that you have been researching and studying an investment system used by most sussessful R/E investors in Canada, and bought some real estate using that system. Show what...

Ramon, If it were an American student, you could ask for a copy of their US bureau file. Otherwise, credit will not be something you can use as one of the factors. Often these students are sponsored or at least supportex by a local community centre (Russian, Ukrainian, Polish, etc.). You...

Periodically I notice re-occurring questions about the impact on this and other investor sites. As somebody with 14 years of experience in credit risk management, I thought I would write something that will hopefully clarify what impact inquiries have on credit file and Beacon score. Every...

Amy, If you are in Ontario, you don't want to walk a slippery slope of being accussed of discrimination against families with children by using phrases such as "Adult Lifestyle" or "Ideal for Couples". Outside of Ontario, you may want to check whether your Human Rights Commission has similar...