Credit Tips for Good Scores
Is it really some revolutionary idea that good credit helps us buy stuff? Of course not, but we need to understand the system to maximize our chances.
Particularly when shopping for a home your credit will be evaluated primarily based upon the credit scores. These credit scores are generated when credit reporting agencies access your credit history.
The reality is most people don't have the foggiest idea of the makings of their score. Most people think credit scoring is mainly about payment history.
Although a good on time history of payments is no doubt very important to a good credit score it is far from being the total picture. Other equally important factors play a role to complete the picture.
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.
You definitely don't want to be maxing your cards out. That is bad juju, even if you pay them on time.
A lack of credit history typically works against credit scores. Do yourself a favor and get 2 or 3 slats of plastic. Start using them immediately and pay on time of course.
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.
Use your credit cards to buy groceries once a month and then pay it off. Do that once a month for a year for two three cards and you'll have big scores in a year.
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.
The scoring system is logical. Be logical when sculpting your credit and watch your scores rise.
Particularly when shopping for a home your credit will be evaluated primarily based upon the credit scores. These credit scores are generated when credit reporting agencies access your credit history.
The reality is most people don't have the foggiest idea of the makings of their score. Most people think credit scoring is mainly about payment history.
Although a good on time history of payments is no doubt very important to a good credit score it is far from being the total picture. Other equally important factors play a role to complete the picture.
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.
You definitely don't want to be maxing your cards out. That is bad juju, even if you pay them on time.
A lack of credit history typically works against credit scores. Do yourself a favor and get 2 or 3 slats of plastic. Start using them immediately and pay on time of course.
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.
Use your credit cards to buy groceries once a month and then pay it off. Do that once a month for a year for two three cards and you'll have big scores in a year.
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.
The scoring system is logical. Be logical when sculpting your credit and watch your scores rise.
About the Author:
In or out of Austin this is a great site for a home mortgage refinance calculator. Follow that link.
posted by Credit Counseling at
5:21 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home