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IMPROVE Your Credit Score!!!!!

I am often asked " how do I improve my credit score"? Well, here are a couple of great tips to improve your score!

1) Have at least three trade lines.

2) Never be more than 50% outstanding of your available. For example, if your limit (available credit) is $10,000, do not have an outstanding balance of more than $5000.

3) Do not close more than one trade line at a time. Wait a couple of months.

4) Do not open more than one trade line at a time. Wait a couple of months.

5) Do not open or close a credit card when applying for a mortgage or auto loan. Doing so will affect your FICO score and may affect your rate or qualifying for the loan. The exception to this is if your loan officer has a credit system which shows "what-if" scenarios. These systems are great, but must be followed exactly!

6) Of course, paying your bills on time and using your credit will improve your score.

Your credit means so much in the lending world. Protect it! Contact one of the three credit bureaus: Experian, Equifax or Transunion and place a "fraud alert" on your file. It is FREE to do so, but you must call every 90 days to re-activate it.

It's your credit! It's your life! Make it happen for Y-O-U!

Ann Sabbagh

508-243-1190

Posted by Ann Sabbagh, Sr. Loan Officer on 04/17/2008 09:15 PM

Comments (8)

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Post is included in group: Mortgages
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8 Comments on IMPROVE Your Credit Score!!!!!

APR

2008

Hi Ann,

Great info, thanks for sharing and have a great week. Michael A. Caruso

Your advice is right on. I think they added that fraud alert automatically already. I have been seeing it on all the CRs that I pull lately from Kroll Factual Data.

Is it true that charge cards hurt your credit, but credit cards is used properly (like you said above) can help?

Ann thank you for such valuable information. I never realized that being over my credit card limit by 50% would affect my over all credit score. It is so important to be abreast to these small simple things that do affect our scores. Especially with current "mortgage crash" - thank you for taking the time to share.

APR

2008

Barb charge cards...credit cards...same thing. They are all issued by a bank. Don't believe me? Turn it over and read the fine print. Debit cards are linked to your checking account...so there not reported.

APR

2008

is it okay to place "fraud alert" even if you don't expect anything? you know, just since it's free. or is it not worth it if there's nothing that's happened?

APR

2008

If you are getting credit card to help your credit be very careful on which ones you get. Some card companies only report to one or two agencies. You need a card that will report to all three agencies. I also would advise that my clients keep the credit card debt under 30%. I know the general rule is 50% but at 30% if something happens we stay within the limits.

Also do not let alot of people pull your credit. Inquiries drop your score. Ann has some great points. I always enjoy dealing with mortgage offices that go that extra mile.

JUL

Ann, we're a little more than a year out from this post. Has anything changed with regard to your advice about improving your credit score?

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