Credit Scores mean everything!

Many people today believe that if yoy make your payments on time you should have a good credit score. Unfortunaly, as improtant as that is thats not all of the story!

While on time payments are an important factor in your credit score, in reality it is only 1/3 of the credit score.

Actually here are 4 important factors in achieving a great credit score:

1. PAYMENT HISTORY - the most important -

      It makes sense that if you pay on time you will do well in this catergory. Conversly, late payments will lower your score. Additionally the number of negative charges on your credit history will be important. The more negative charges the more you will be affected. The more recent negative items will be more important than those that are several years old.

2. DEBT - a very close second -

      The most important non payment catergory is the amount of debt you carry. While mortgages and car loans are factored in, it is really your credit cards that hold the most weight. The balances you carry are as important as your payment history! See your finanacial advisor to calulate your revolving utilization score.

3. AGE OF YOUR CREDIT HISTORY  -

        Don't confuse with your actual age. How long ago you began to establish a credit history bears some weight. If you just began - be attentive and patient. There is not much else you can do in this catergory.

4.   NEW CREDIT INQUIRIES -

        Be attentive to granting ANY lender permission to access your credit report and scores. You should only do this when you really need credit. While "loan" shopping for mortgages and auto loans is important - be sure you are really "in the market" before you grant multiple searches

As you can see being informed and surrounding yourself with well informed helpful team members can assist you in achieving ALL your goals. INCLUDING  a home purchase!

Have a sweet day!

Candi