A Few Credit Secrets!

By
Mortgage and Lending with Veritas Funding

My clients often ask about their FICO score.  Does it really matter?  What goes into it and how is it determined?

YES, IT REALLY MATTERS! Your credit score directly determines what the interest rate on your loan is going to be.  Imagine a difference between 4% and 5% on a loan, depending on your loan amount this could be hundreds of dollars.

Here are some helpful credit secrets that will help you to improve and maintain a high credit score, because let's face it today you need more than just good credit to get a loan.

Paying your debts on time--make sure that you make your payments within 30 days of them being due.  A delinquency on your credit affects your score the most.

Credit Balances vs. Credit Limits--always keep your balances on your credit cards below 40% to ensure the best score.  25% is most favorable.

Keeping your cards open--unless you have more than 6 credit cards open, even if the balances are zero, keep them open.  You wouldn't beleive it but closing accounts hurts your credit score.

Credit scores are higher--with a good mix of credit.  FICO considers 2-4 credit cards, 1-2 car loans and 1-4 mortgages to be a good mix of credit.

Check your credit report for free once a year--It is always good to check your credit report to make sure that everything is accurate.  You can go to www.freecreditreport.com to obtain your free credit report.

To get your four more of the hidden credit secrets click the link below:

www.maryhofeling.com/freereports/Featured/

Comments (2)

Jay Lloyd
Cape Coral Florida - Cape Coral, FL
Allpro Home Inspection

Hi RK, Thanks for the info. I'm passing it along to my neice who's looking to purchase a home in the near future. jay

Jan 29, 2011 08:22 AM
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee - 423-677-6677

Ryan,

This is a great post.  helpful for a lot of people I'm sure.  I don't think the average person realizes how important it is to keep your zero balance cards open.  Thanks-Cindy

Jan 29, 2011 08:30 AM