Mortgage Guy Gives Tips to Raise Credit Scores
Is it really some revolutionary idea that good credit helps us buy stuff? Of course not, but we need to understand the system to maximize our chances.
Particularly when shopping for a home your credit will be evaluated primarily based upon the credit scores. These credit scores are generated when credit reporting agencies access your credit history.
People tend to oversimplify things. When it comes to their own credit scores they assume that as long as payments have been on time the scores should be good.
This is only partially true. Your credit score is generated from numerous factors in combination. Thereafter, no one knows except the developer and those in the real know.
Here is what we do know. You obviously need to keep a clean payment history. Remember, companies report you late only when you've exceeded thirty days past your due date.
Keep low balances relative to your available credit. If you keep a five dollar balance and you have $1,000 limit is better than a $5 balance and a $10 credit limit.
Along these lines avoid going all the way up to your limit on your plastic. Even with timely payments it signals trouble to your scores.
Credit scoring likes some open credit. So, if you are credit averse and don't have hardly any trade lines open, go get two or three.
Be careful about being too aggressive getting cards. You don't want to all of the sudden get 20 of them. The system could perceive that as an attempt to run up credit.
Make very moderate purchases with your small number of cards and be sure to pay the entire balance off by the end of the month. In a year you won't believe your scores.
Credit scores frown heavily on recent foul ups. The more recent the foul up the more the scoring system believes you to be in the middle of a financial storm. Be very careful if you are looking to use your credit soon.
Most of credit scoring makes sense. Use logic when developing your credit picture and you'll be just fine.
Particularly when shopping for a home your credit will be evaluated primarily based upon the credit scores. These credit scores are generated when credit reporting agencies access your credit history.
People tend to oversimplify things. When it comes to their own credit scores they assume that as long as payments have been on time the scores should be good.
This is only partially true. Your credit score is generated from numerous factors in combination. Thereafter, no one knows except the developer and those in the real know.
Here is what we do know. You obviously need to keep a clean payment history. Remember, companies report you late only when you've exceeded thirty days past your due date.
Keep low balances relative to your available credit. If you keep a five dollar balance and you have $1,000 limit is better than a $5 balance and a $10 credit limit.
Along these lines avoid going all the way up to your limit on your plastic. Even with timely payments it signals trouble to your scores.
Credit scoring likes some open credit. So, if you are credit averse and don't have hardly any trade lines open, go get two or three.
Be careful about being too aggressive getting cards. You don't want to all of the sudden get 20 of them. The system could perceive that as an attempt to run up credit.
Make very moderate purchases with your small number of cards and be sure to pay the entire balance off by the end of the month. In a year you won't believe your scores.
Credit scores frown heavily on recent foul ups. The more recent the foul up the more the scoring system believes you to be in the middle of a financial storm. Be very careful if you are looking to use your credit soon.
Most of credit scoring makes sense. Use logic when developing your credit picture and you'll be just fine.
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posted by Debt Consolidation Loan at
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