If You Want A Better Mortgage Rate Read Credit Scoring Basics
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.
Equifax publishes myFICO.com, and Equifax is one of the major credit scoring companies. All can learn from the numerous pages of financial tips, suggestions, and tricks.
Check out the following basics:
Use It Or Lose It: If you don't use credit, the credit agencies can't assign you a credit score. Spend $10 monthly on your credit cards and then pay it in full to "get on the grid" and get yourself a score.
Your Trend Is Your Friend: Payments that are "on time" are favored by the credit bureaus. If your pattern is on time payments, the bureaus know you will probably continue paying regularly and on time. This is the biggest part, 35%, of your credit score. If you have late payments, catch up.
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.
History Is The Best Teacher: Don't close unused credit cards. Having a credit "history" accounts for 10 percent of your score.
There are more helpful hints available at the Web site so with additional credit score adjustments to mortgage rates expected later this year, the best way to protect yourself is to be proactive. Identify potential issues in your credit profile and work to improve them.
We all want the best mortgage rate possible, but are not always clear about the best way to get credit scoring formation . Please speak with your loan officer about getting the personal information that you need.
Equifax publishes myFICO.com, and Equifax is one of the major credit scoring companies. All can learn from the numerous pages of financial tips, suggestions, and tricks.
Check out the following basics:
Use It Or Lose It: If you don't use credit, the credit agencies can't assign you a credit score. Spend $10 monthly on your credit cards and then pay it in full to "get on the grid" and get yourself a score.
Your Trend Is Your Friend: Payments that are "on time" are favored by the credit bureaus. If your pattern is on time payments, the bureaus know you will probably continue paying regularly and on time. This is the biggest part, 35%, of your credit score. If you have late payments, catch up.
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.
History Is The Best Teacher: Don't close unused credit cards. Having a credit "history" accounts for 10 percent of your score.
There are more helpful hints available at the Web site so with additional credit score adjustments to mortgage rates expected later this year, the best way to protect yourself is to be proactive. Identify potential issues in your credit profile and work to improve them.
We all want the best mortgage rate possible, but are not always clear about the best way to get credit scoring formation . Please speak with your loan officer about getting the personal information that you need.
About the Author:
With unprecedented challenges in the credit markets it's more important than ever to have excellent credit. For more information Visit Rob Kosbergs' Detailed FREE Guide on Maintaining and Repairing your Credit Score by going to Bad Credit Repair for your FREE information.
posted by Credit Counseling at
2:21 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home