John Reinhardt
REALTOR
770.475.1130 Ext. 6806
Credit Scoring - Advice From the Experts All lenders use credit scoring for conforming loans, and your credit score will affect the type of loan and the terms available to you, although there may well be other underwriting requirements in addition to the FICO scores. Because the three reporting agencies report differently and may update at different times, your score may vary from one agency to another. Typically, the lender will use your middle score. If you are unsure of your credit rating, it would be a good idea to order a copy of your credit report in advance of applying for a loan. This will enable you to correct any mistakes or pay off any old debts and have your credit report updated. All credit reported remains on the report for SEVEN YEARS from the last date of activity, except for bankruptcies which are on the report for ten years. The last activity is any change reported on your account, including your last charge, your last payment, or the date you paid off your balance. You'll find a variety of offers for purchasing an online credit report, including your credit scores at MyFICO.Com. You can also obtain a free credit report from each of the reporting agencies by writing to them directly.
EQUIFAX TRANS UNION EXPERIAN/TRW
P. O. Box 740256
Atlanta, GA 30374-0256
800-675-1111
Fax: 888-978-0146
ecis@equifax.com
P. O. Box 2000
Chester, PA 19022
800-916-8800 or 800-267-1440
Fax: 610-541-4286
P. O. Box 9595
Allen, TX 75013
800-567-5470
800-879-3752
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Here are some tips for maintaining a healthy FICO score: 1. Always make payments on time. Delinquent accounts in the most recent 24 months have the most weight on your scores. 2. Avoid inquiries (loan shopping). Excessive inquiries may diminish your credit rating. 3. Avoid store accounts, including 90 day "same as cash" offers, as most stores sell their accounts to finance companies, and this will not look as favorable as a bank credit card or loan. 4. Avoid balances of more than 10% of your available credit line on your cards. Note: It is not a good idea to consolidate all of your debt on one card. A lower balance and longstanding good payment history on several cards is better than one larger balance. 5. Legal actions such as judgments (court decisions), collections (a delinquent account which has been turned over to a collection agency), and bankruptcies harm credit ratings. 6. Check your credit reports regularly for accuracy. If you find a mistake, be sure to dispute it in writing and check to make sure it has been corrected. 7. If you pay off an old debt, be sure to get a commitment from the creditor that your date of activity will not be changed at the time of the pay off (otherwise, it may remain on your credit for seven years from the time of payoff). NOTE: Paying off a delinquent account will not remove this bad credit from your report. It will remain for seven years from the date 8. If you decide to pay off and close an account, be sure that it has been reported that the account was closed at the consumer's request. |
John Reinhardt
REALTOR
Solid Source Realty
770.475.1130 Ext. 6806
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