Basic Credit Scoring 101 For A Better Mortgage Rate
Mortgage pricing is now paying more attention to credit scoring. Since credit scores are now more important , it is vital that you locate and review your credit score. If you learn how the credit scoring system operates, you can make it work for you. The web site my FICO.com is a great place to start.
Equifax is one of the primary credit bureaus and is the publisher of my FICO.com. This site provides a wealth of suggestions, tricks and tips that will help you figure out the credit scoring system.
Here are some basic pointers to get you started:
Remember the number 30: Credit card balances should hold steady at no more than 30% of the card limit. The credit bureau believes that you are responsible with use of credit if this is your situation. If you consider consolidating several credit card balances into a single card, be careful of the single card limit because overloading could hurt your score.
Your Trend Is Your Friend: Payments that are "on time" are favored by the credit bureaus. If your pattern is on time payments, the bureaus know you will probably continue paying regularly and on time. This is the biggest part, 35%, of your credit score. If you have late payments, catch up.
30 Is An Important Number: Credit card balances should remain below 30% of their limits. This says to a credit bureau that you are responsible with credit. Think carefully if you plan to consolidate multiple credit cards into one. Be aware of the single card's limits. Overloading the card could hurt your score.
Learn From History: Your "credit history" is 10% of your score. So, to hold that history, don't close credit cards that you don 't use.
There are more helpful hints available at the Web site so with additional credit score adjustments to mortgage rates expected later this year, the best way to protect yourself is to be proactive. Identify potential issues in your credit profile and work to improve them.
We all want the best mortgage rate possible, but are not always clear about the best way to get credit scoring formation . Please speak with your loan officer about getting the personal information that you need.
Equifax is one of the primary credit bureaus and is the publisher of my FICO.com. This site provides a wealth of suggestions, tricks and tips that will help you figure out the credit scoring system.
Here are some basic pointers to get you started:
Remember the number 30: Credit card balances should hold steady at no more than 30% of the card limit. The credit bureau believes that you are responsible with use of credit if this is your situation. If you consider consolidating several credit card balances into a single card, be careful of the single card limit because overloading could hurt your score.
Your Trend Is Your Friend: Payments that are "on time" are favored by the credit bureaus. If your pattern is on time payments, the bureaus know you will probably continue paying regularly and on time. This is the biggest part, 35%, of your credit score. If you have late payments, catch up.
30 Is An Important Number: Credit card balances should remain below 30% of their limits. This says to a credit bureau that you are responsible with credit. Think carefully if you plan to consolidate multiple credit cards into one. Be aware of the single card's limits. Overloading the card could hurt your score.
Learn From History: Your "credit history" is 10% of your score. So, to hold that history, don't close credit cards that you don 't use.
There are more helpful hints available at the Web site so with additional credit score adjustments to mortgage rates expected later this year, the best way to protect yourself is to be proactive. Identify potential issues in your credit profile and work to improve them.
We all want the best mortgage rate possible, but are not always clear about the best way to get credit scoring formation . Please speak with your loan officer about getting the personal information that you need.
About the Author:
With unprecedented challenges in the credit markets it's more important than ever to have excellent credit. For more information Visit Rob Kosbergs' Detailed FREE Guide on Maintaining and Repairing your Credit Score by going to Bad Credit Repair for your FREE information.
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