Basic Credit Scoring Tips For A Better Mortgage Rate
Credit scoring is becoming more important to mortgage pricing so now would be a terrific time to brush up on your credit education. If you understand how the system works, after all, you can make it work to your advantage. One terrific place to start your research is at myFICO.com.
Published by credit scoring powerhouse Equifax, myFICO.com give you information right from the source. There are tens of pages of tips and tricks from which everybody can learn.
Check out the following basics:
Use your credit or lose your score: You need to get on the credit "bandwagon" if you want a credit score assigned by the credit agencies. Even if you charge a small amount and pay it off each month, you'll be on the radar and have a score.
30 Is The Magic Number: Holding your credit card balances below 30 percent of their respective limits shows an ability to manage credit responsibly. Before consolidating multiple credit cards onto one credit line, consider that card's credit limit. Overload it and the consolidation could hurt your credit score.
If You Don't Use It You'll Lose It: You need to use your credit because this is how you get an assigned credit score from the credit bureaus. You can simply charge a small amount and pay it off each month and you will have a 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.
Start to identify the probable issues in your credit history and improve them. More helpful ideas are available at my FICO.com. Later this year, more credit score adjustments to mortgage rates are expected. So, protect yourself with proactive measures.
We don't always know all about credit scoring and may need more assistance than a web site can provide. In order to get your best possible mortgage rate, speak to your loan officer for an analysis of your personal information about your credit score.
Published by credit scoring powerhouse Equifax, myFICO.com give you information right from the source. There are tens of pages of tips and tricks from which everybody can learn.
Check out the following basics:
Use your credit or lose your score: You need to get on the credit "bandwagon" if you want a credit score assigned by the credit agencies. Even if you charge a small amount and pay it off each month, you'll be on the radar and have a score.
30 Is The Magic Number: Holding your credit card balances below 30 percent of their respective limits shows an ability to manage credit responsibly. Before consolidating multiple credit cards onto one credit line, consider that card's credit limit. Overload it and the consolidation could hurt your credit score.
If You Don't Use It You'll Lose It: You need to use your credit because this is how you get an assigned credit score from the credit bureaus. You can simply charge a small amount and pay it off each month and you will have a 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.
Start to identify the probable issues in your credit history and improve them. More helpful ideas are available at my FICO.com. Later this year, more credit score adjustments to mortgage rates are expected. So, protect yourself with proactive measures.
We don't always know all about credit scoring and may need more assistance than a web site can provide. In order to get your best possible mortgage rate, speak to your loan officer for an analysis of your personal information about your credit score.
About the Author:
With unprecedented challenges in the credit markets it's more important than ever to have excellent credit. For more information check out Rob Kosbergs' Complete FREE Guide on Maintaining and Repairing your Credit Score by going to Bad Credit Repair for your FREE information.
posted by Credit Counseling at
12:18 PM
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