I thought that Fair Isaac, the inventor of a prevalent credit-scoring model, might be a good place to start to get some reliable and useful information. Wrong!
Here are some non-answers to questions taken directly from a FAIR ISAAC publication:
• QUESTION: If derogatory information is removed, how much will the score increase?
ANSWER: "...it is not possible to estimate how much the score will change..."
• QUESTION: What would happen to the score if an applicant were to pay off his or her balances and/or close some accounts?
ANSWER: "It is not possible to ensure that credit scores would increase in this case."
•QUESTION: Do inquiries affect the credit bureau score?
ANSWER: "...inquiries may or may not be a factor in the score..."
Get the picture? These answers are not really evasive. The truth is, there are 60 different factors that are used in determining credit score. The mathematical formula utilized is very complex, so it's extremely difficult to predict how isolated factors will affect a particular score. Generally, the borrowers with the highest credit scores probably hold these things in common:
- They use credit sparingly.
- They always pay on time.
- Their credit accounts have not been recently opened.
- They have not been in pursuit of new credit.
How would you like to have the answers to these questions?
- How can using more credit raise my score?
- How can paying off collection accounts lower my score?
- When does opening new accounts raise my score and when does it lower them?
- Which accounts should I pay off to raise my score the most?
"Well, Jason, don't you have a magic "What If Machine" that would allow you to make changes on an individuals credit report and then tell you how the score will change?"
I thought you would never ask! We just got one.
Now, when you apply for a mortgage at ProLending Mortgage, we can run a brand spankin' new... fresh out of the wrapper... ink still wet computer program that discloses what changes you can make to your credit profile to maximize your credit scores. WE CAN EVEN HAVE YOUR SCORES RAISED WITHIN A WEEK! This extra step can end up saving you a fortune if it qualifies you for a better mortgage at a lower rate. This is just another advantage of working with a local broker who cares rather than responding to countless Internet, phone, and mail solicitations thinking that banks are "competing for your business."
If you would like to enjoy the confidence of knowing that the best mortgage brokers in the business are serving your best interests, call ProLending Mortgage at 281-957-5318 and make an appointment for a FREE consultation. You may also e-mail questions or comments to jholter@prolendingmortgage.com. Please visit my website at http://www.yourclearlakemortgage.com/.
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