Tuesday, June 11, 2013
Your Credit Scores Can Never Be Too High (Credit Scores Simplified)
By Brian Curl
June 11, 2013

Being in the mortgage business for 15 years and previously working as a certified Neighborworks Home Ownership Counselor, I've learned a few things about credit scores.
Really, it is pretty simple to maximize your credit scores. By doing so, you will save on everything - credit cards, car loans, home mortgage loans and car and home insurance. It will also give you the powerful tool of having the ability to get credit, when you want it.

The Basics

I suggest having two credit cards and at some point when you need it, an installment loan. An installment loan is paid back over a set period with fixed payments, for instance, a car loan, a mortgage loan and student loans are installment loans.
Once you have these forms of credit, make sure you do not miss any payments. A payment is considered late if it is paid thirty days past the due date. So, if the payment is due July 1st and you make the payment August 2nd, it's thirty days past due. Thirty day past due payments impact your scores negatively instantly, so avoid late payments at all costs.
Next and very important is maintaining low credit card balances whenever possible, especially when you are near to applying for some type of credit. To maximize your scores at any given time, your credit card balances should be below twenty percent of the high credit limit. If your credit limit is $3,000 on one card, then to maximize your scores pay or keep your balance below $600. On a $300 maximum limit credit card, to maximize your score, pay or keep your balance below $60. A small credit card isjust as powerful as far as credit scoring goes as big credit card; it's all about the balance you carry in relation to the high credit limit. This applies to all credit cards you have open, try to maintain balances less than 20 percent of the high credit limit at all times on all of them.
Need to Build or Rebuild your Credit Score?
If you need to build or rebuild credit and need a credit card,check out Capital One, it's easy to apply online and they offer secured credit cards for people with less than perfect credit. Capital Bank offers an installment loan credit builder. It's basically a savings account, so it doesn't cost you anything in interest charges. If you have had credit problems in the past and now new credit now, you need new accounts to start off fresh and get your scores going in the right direction, up.

Getting Rid of the Bad

Small and big collections from credit cards, utilities, medical bills, or anything else have a negative impact on your credit score. Sometimes we don't want to pay bills or they are in dispute. If that bill goes to collection, you are not going to win, see if you can settle any possible bad debts before they go to collection, bite the bullet in the name of your credit score. If you have collections, work on paying them off. Many collection companies will settle your collection account for less than the full balance. Offer them 50% of what you owe them. If hey say no, then ask what the least is that they will take in order to settle your account. Usually, they will give you a settlement amount that is less than the full asking balance.
In conclusion, pay your bills on time or within 30 days of the due date, keep all credit card balances at 20% or less of the high credit card limit and limit and get rid of collection accounts.
Check your credit report once per year free at https://www.annualcreditreport.com/cra/index.jsp. You don't need to pay for scores, just check your report for any mistakes or bad debts or collections that you may want to pay.

I'd be glad to give you pointers on your credit if you are in the market to buy a home now or in the future. If you want to talk to me,complete this simple form or call me at 502-671-3468.

Labels:Bad Credit,Credit Scores,First Time Homebuyer,Home Loans,

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