My New Blog

Today we will continue with the credit scoring process which is one of the most important elements in being granted approval for a mortgage and determining what interest rate you will pay. We may have a love-hate relationship with these scores, but benefits of the credit score outweigh the negatives as far as lenders are concerned. It’s important to note that raising your credit score is a little bit like losing weight. It takes time and there is no quick fix. In fact, quick fix efforts can backfire. The best advice is to manage credit responsibly over time.

Payment History Tips

· Pay your bills on time. Delinquent payments and collection can have a major negative impact on your credit score.

· If you missed payments, get current and stay current as soon as possible. The longer your history of paying bills on time, the better your credit score will be.

· Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for 7 years.

· If you are having trouble making ends meet, contact your creditors to see if they have any options available.

It seems we have become a society dictated by credit cards, and if handled responsibly they can substantially raise your credit score. They can also be your greatest downfall if abused.

Tips for credit card use

· Keep balances low on credit cards and other “revolving debt.” High outstanding balances can lower your credit score.

· Pay off your debt rather than moving it around. The most effective way to improve your credit score in this area is by paying down revolving credit.

· Don’t open a number of new credit card accounts you don’t need in an effort to increase your available credit. This approach could backfire and actually lower your credit.