Did you know that you could increase your credit score by as much as 50 to 100 points in as little as 45 days? And here's the kicker, you can do it without using a formal credit repair service (Uh oh, now I'd on gone done it...here comes the onslought...).
So what's the big secret Ricardo? What's the catch?
No secret(s). No catch.
Most people who have credit issues are mis-informed is all. So here's a little Credit Education 101...
THE 5 ELEMENTS OF YOUR CREDIT SCORE
[Note: Click on the image to enlarge.]
Past Dues & Bankruptcies make up 35% of your credit score...
The Amount Owed on ALL Accounts (how much available credit there is) constitutes 30% of your credit score...
New Credit, New Accounts make up 10% of your credit score...
Credit History makes up 15% of your credit score... And,
Type of Credit Used (car loan vs. a credit card at Victoria's Secret) makes up the final 10%.
Being selective about the type of credit accounts you use can make the difference in ranking a higher credit score. Spreading your credit across various accounts is better than maxing out two credit cards.
Where most people plunder is in monitoring their credit scores to begin with. Think about it, when's the last time you checked your own credit score? "My credit is fine..." so you say. But when's the last time you checked it?
Any credit report can contain minor erros that can adversely affect your credit score between 5 to 100 points; enough to deny someone credit. If you don't monitor your credit it can take a credit bureau up to 20+ weeks to fix their own mistake. And that's if they fix it at all! Whereas if you find an error (such as a late payment or two), report a claim to fix it with appropriate evidence...they have to respond otherwise the late payment is coming off.
Not convinced you should monitor your credit just yet?
How about a payment of $388 more a month because you're shy a few points on your credit report? That's $4,656 a year. $139,680 over the life of the mortgage.
THE HIGHER YOUR CREDIT, THE BETTER YOUR INTEREST RATE!
Contact me if you'd like to register for a FREE Annual Credit Review.
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