ALWAYS CHECK YOUR CREDIT HISTORY REPORTS ON A REGULAR BASIS AND KEEP THEM UPDATED.
Check with the major reporting agencies, Experian, Equifax and TransUnion. You are entitled by law to a free credit report from these agencies on an annual basis. Request your report and review it for accuracy of your payment and history.
Lenders will take your credit bureau history reports into account when assessing ongoing creditworthiness.
The major credit reporting agencies Equifax, Experian and TransUnion, created AnnualCreditReport.com, a site that allows consumers to request, view and print credit reports. This site also simplifies complicated financial terms and mathematical equations.
UNDERSTAND YOUR CREDIT REPORT AND SCORE.
A credit report, or credit file disclosure, contains information on where you live, how you pay your bills, and whether you've been sued or arrested, or have filed for bankruptcy. National consumer reporting agencies sell information in your credit report to creditors, insurers, employers and other businesses.
Lenders review your report to determine whether to extend you a loan and decide the rate of interest. Employers, with your permission, may scrutinize your report for lawsuits, criminal history or whether you have filed for bankruptcy. Insurance companies review information to decide their level of risk in providing you with a policy.
Credit reporting companies input information from your credit report into a mathematical equation to determine a credit score.
WHAT TO AVOID?
AVOID USING "CONSUMER CREDIT COUNSELING" COMPANIES. This is considered to be similar to bankruptcy by some lenders.
MAKE TIMELY PAYMENTS ON YOUR DEBT. This will help build our credit history. A history of missed or late payments can make it more challenging to secure credit in the future. Accounts that are delinquent will be reported to the credit bureaus and/or be cancelled and sent to collection, which will negatively impact your credit history.
PRACTICE GOOD DEBT MANAGEMENT.
Lenders will take your revolving credit card debt and total debt level into account when making decisions.
Borrow money only for essential purposes. Do what it takes to keep debt levels down and increase your ability to secure credit. Avoid applying for credit from multiple sources in a short period of time.
DO WHAT IT TAKES TO BUILD YOUR CREDIT HISTORY, ESPECIALLY DURING CHALLENGING TIMES.
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If you want information about interest rates and home loans to be secured by deeds of trust in California, we recommend you contact Tim Sibley, First Capital Mortgage, 949-718-1511.
Harrison K. Long, Explore Group Properties, Coldwell Banker Previews, Irvine, California.
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Having a high FICO score is more important than ever. A few years ago a borrower with a FICO as low as 620 could get the same interest rate as someone with a 720 score, depending on the loan to value. Now, a score lower than 720 will result in either high loan fees or a higher interest rate. FHA is more flexible, with no hits to the rate or fees until the FICO is under 620. Great info!