Credit Scores are King... Follow These Tips
We all know the importance of a strong credit history but many haven't the foggiest idea of how to work their credit to make it look as good as possible.
When getting a home mortgage you will be evaluated primarily by the Fair Isaac credit scoring system. This is a proprietary credit scoring system out of which comes scores associated with your history.
Were all aware of this, but few of us really know how these scores are generated. Most think the scores are just about payment history.
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.
Since we started with payment history you should be aware that you're not late until thirty days post the due date. Keep that in mind when in a pinch. You pay all the way up til the end and still have a clean payment history.
When you have lots of available credit which is relatively unused it looks better on your scores. It basically means you have discipline and cushion to fall back on if in need.
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.
If you don't have much credit it's a good idea to get some by opening up several credit cards. Open trade lines with good payment histories is positive.
Remember, credit scoring is somewhat sensible in what it factors. That being the case do not run out and get 10 credit cards. This could be seen as trouble by the scoring system.
You want to use your new credit cards every single month and every month you want to pay off the balance. You'll be shocked at how much your scores rise in a very short time.
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.
These are just some basic tips. Be sensible about how you develop your credit and your scores will go to the moon.
When getting a home mortgage you will be evaluated primarily by the Fair Isaac credit scoring system. This is a proprietary credit scoring system out of which comes scores associated with your history.
Were all aware of this, but few of us really know how these scores are generated. Most think the scores are just about payment history.
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.
Since we started with payment history you should be aware that you're not late until thirty days post the due date. Keep that in mind when in a pinch. You pay all the way up til the end and still have a clean payment history.
When you have lots of available credit which is relatively unused it looks better on your scores. It basically means you have discipline and cushion to fall back on if in need.
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.
If you don't have much credit it's a good idea to get some by opening up several credit cards. Open trade lines with good payment histories is positive.
Remember, credit scoring is somewhat sensible in what it factors. That being the case do not run out and get 10 credit cards. This could be seen as trouble by the scoring system.
You want to use your new credit cards every single month and every month you want to pay off the balance. You'll be shocked at how much your scores rise in a very short time.
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.
These are just some basic tips. Be sensible about how you develop your credit and your scores will go to the moon.
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Head hear for an Austinhome mortgage refinance calculator. Make sure you go there.
posted by Credit Counseling at
5:35 PM
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