Credit Reporting

By
Mortgage and Lending with MS Lending, LLC 102016

Have you ever worked with a borrower who had no credit scores?  Many times, these people have been advised by someone along the way that they should open up some type of loan account or credit card in order to have some type of credit card.  While this isn't bad advice, please be aware that an account must be reporting for at least 6 months before any type of score will be generated.  Therefore, if it has recently been opened, it will not reflect in the score even if they are making on time payments.  So, if you don't have the option of using a no score program, pull their credit again in a few months once the account has been open for at least 6 months. 

I'm sure you all know this as well but...  make sure that they keep their balance as low as possible on their card every month so that it will boost their score.  In the past it was believed by most people that it boosted your score if you only used 50% of your credit line.  However, the magic number is actually 33% of the credit line!  So...don't go crazy!  Buy a tank of gas, pay it off.  Buy groceries, pay it right off!  Credit cards can definitely boost your scores.  Don't let them hurt your scores!! 

Stay tuned for more credit tips! 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At

Spam prevention
Show All Comments
Rainmaker
388,869
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana
I have advised potential clients to get a card with a very low limit.  Use it just for gas and pay iot off each month.  I usually recommend a year of use.
Oct 02, 2007 08:20 AM #1
Rainer
39,049
Michael Delp
Mortgage Pro - Telford, PA
Another way to help someone with no score is to get a family member with good credit (usually no score people are usually young people so this is usually a parent) and have them add them on their credit card as an authorized user. This sucks them into the system and gives them a score based on the parents credit.
Oct 03, 2007 02:38 AM #2
Rainer
6,288
Michelle Dugan
MS Lending, LLC - Madison, MS
We really don't encourage authorized user accounts to boost scores.  While they can help people in some situations, I do not believe that it is a fair reflection of that persons ability to repay.  We use them if people have them but rarely - if ever - have we encouraged someone to do this.  Personal preference I suppose!
Oct 03, 2007 03:52 AM #3
Rainmaker
549,865
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience
High credit card balances is the number one score killer around here....
Oct 11, 2007 05:06 AM #4
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
6,288

Michelle Dugan

Ask me a question
*
*
*
*