Basic Credit Scoring 101 For A Better Mortgage Rate
The right time to review your credit scoring is now because the credit score is becoming more important for mortgage prices. You can make the credit system work for you if you have the knowledge of how the system works. For research or review look 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.
Following are some of the 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.
30 Is An Important Number: Credit card balances should remain below 30% of their limits. This says to a credit bureau that you are responsible with credit. Think carefully if you plan to consolidate multiple credit cards into one. Be aware of the single card's limits. Overloading the card could hurt your score.
History Is The Best Teacher: Don't close unused credit cards. Having a credit "history" accounts for 10 percent of your score.
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.
Credit scoring is not always intuitive so if you're not getting the personal information you need from general Web sites, ask your loan officer for an in-depth analysis. The mortgage rate you save may be your own.
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.
Following are some of the 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.
30 Is An Important Number: Credit card balances should remain below 30% of their limits. This says to a credit bureau that you are responsible with credit. Think carefully if you plan to consolidate multiple credit cards into one. Be aware of the single card's limits. Overloading the card could hurt your score.
History Is The Best Teacher: Don't close unused credit cards. Having a credit "history" accounts for 10 percent of your score.
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.
Credit scoring is not always intuitive so if you're not getting the personal information you need from general Web sites, ask your loan officer for an in-depth analysis. The mortgage rate you save may be your own.
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
9:54 AM
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