We are with commandment #3. I’m just going read it right off the board here.
Thou shalt not use credit cards excessively or let credit credit accounts fall behind.
These is two very important points. So, you don’t want to use your credit card excessively because you don’t want to endanger what’s called your TDSR ratio or total debt service.
So basically what they count in terms of a credit card payment is 3% of your balance. That’s the calculation they use towards your monthly payment to calculate your TDSR ratio. You got to keep that ratio under 44%. Remember that don’t let that happen. Furthermore, you don’t want to let any of your accounts fall behind because this could affect your beacon score, okay.
A lot of these lenders have a minimum beacon score. If all of a sudden you mess up because you’ve missed a payment, all of a sudden, your beacon score falls behind.
Guess what’s going to happen? Your financing’s going to get pulled. Don’t do it. So be very, very careful respect credit, especially during the pending period of when you’ve bought a home.