Report: Nine Credit Magic Tricks
Nine Credit Magic Tricks…
With all the changes going on in the financial markets it is getting harder to get financing for a home purchase and now your credit score directly corresponds to the interest rate you qualify for. Having good credit can save you thousands of dollars a year on a home mortgage.
Here are some simple tips to maximize your credit scores!!
1- Pay your bills on time! Setting up automatic payments with your account holders or with your banks can take the work out of paying bills. But make sure the payments are received no later than 30 days past the due date!
2- Balances. Keep balances on credit cards and other revolving accounts below 40% of your credit limits. 25% is optimal and will result in the absolute best credit scoring. Remember owing a high balance on one credit card and paying off a credit card to 0 is not the same. You want your credit debt to be distributed through all your accounts.
3- Keep your credit cards open. Unless you have over 6 credit cards, or the account has been opened less than two years, closing out credit accounts can actually hurt your credit score. Credit scoring programs assume that people who have had an account for a longer time are less of risk in defaulting on payments. Charge something on your accounts every month. It can be one tank of gas a lunch, anything small will do.
4- Contact creditors that have reported late payments and request a good faith adjustment by removing the reports of late payments on your account. Be polite and ask specifically for the adjustment. It may require more than one call to accomplish this.
5- Pay off collection accounts, but only if the collection agency is willing to delete the report in return for your full payment. Contact the collection agency and request a letter stating the agency's agreement to delete the account upon receiving payment from you. Paying off this account without the agreement to delete the account can actually hurt your credit rating due to the fact that the last date of activity will be updated to the day you make the payment.
6- Pay off delinquent accounts that are not in charge-off status.
7- Get rid of any charge-offs or leans that are less than 24 months old. These effect your rating far more than those that are more than 24 months old.
8- Don’t open unnecessary new accounts. When you go to the mall and they ask you if you want to save 10% on your purchase by opening a credit account, SAY NO!!! Also if you’re shopping rates on a auto loan or mortgage loan do it within a 30 day period. If you keep credit checks within that window it should only effect your credit as if it was checked once.
9- Credit scores are higher when you have a good mix of open accounts/trade lines reporting. 2-4 credit cards, 1-2 cars, 1-4 mortgages. This is a good example of what they would consider a good mix of credit
Review your credit at least once a year to make sure the information being reported is accurate. This can be done with a free source like freecreditreport.com.
Please let me know if you have any questions or if you would like me to look at your credit to see if there are areas to improve.
For additional info on how to improve your credit score go to our other site at http://www.utahcreditcoach.com/
Josh Mettle is a top producing Professional Mortgage Lender in Salt Lake City, Utah. Josh is also a fourth generation real estate investor, and owns a number of rental homes, apartment units and mortgages. If you’re ready to buy or sell residential real estate, get Josh’s latest free tips, tools and newsletter at http://www.joshmettle.com Utah Real Estate Professionals can keep informed by visiting Josh's Mortgage and Real Estate Blog at http://www.joshmettle.com/blog/
Contribution by Jamison Law Group Offers Advice on Raising Credit Score Date: July 18, 2009 LOS ANGELES, CA United States of America