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Credit Tips
Lenders look at your credit scores vary carefully and your score could determine whether you qualify for a great interest rate or a bad one. Here are a few tips to possibly get the best score.
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Your payment history makes up 35% of your total FICO score! Pay your bills on time! Setup direct debit whenever possible, or your bank may offers online checking with the capabilities of automatic check writing.
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Closing your credit card accounts after they are paid will give you higher credit scores. FALSE!!!! This will reduce your available credit line, which actually lowers your score. Plus, if you’ve had the card for several years, omitting it makes your credit history look much younger, which will also lower your score.
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Call your credit card company and ask to increase your credit limit. YES!! You are reading it correctly. For example, if you currently have a balance of 8,000 and a credt limit of 10,000, your using 80% of your limit. If you get it increased to $15,0000, now your only using 46% of your limit. WARNING! Dont use the extra credit line!!.
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Don t ever close a credit card account. If you pay off a credit card down to a zero balance, leave it open. Remember that a positive factor for your credit score is how much available credit you have at your disposal when compared to your credit balance, in addition to the length of your credit history.
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Shopping around for the best mortgage rate will lower my score because the mortgage companies will be pulling my credit. FALSE !!! The credit bureaus understand that consumers shop around. To be safe, try to keep your shopping within a two-week period, therefore they will all be treated as one inquiry.
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Check for errors on your credit report. Examine your credit report for errors and contact the credit reporting agencies to fix any errors on your credit report.
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