Credit Tips for Good Scores
It is no secret that the better your credit history the better your interest rate will be purchasing cars, furniture or a home using a mortgage.
When getting a home mortgage you will be evaluated primarily by the Fair Isaac credit scoring system. This is a proprietary credit scoring system out of which comes scores associated with your history.
People tend to oversimplify things. When it comes to their own credit scores they assume that as long as payments have been on time the scores should be good.
This is only partially true. Your credit score is generated from numerous factors in combination. Thereafter, no one knows except the developer and those in the real know.
Here is what we do know. You obviously need to keep a clean payment history. Remember, companies report you late only when you've exceeded thirty days past your due date.
When you have lots of available credit which is relatively unused it looks better on your scores. It basically means you have discipline and cushion to fall back on if in need.
You definitely don't want to be maxing your cards out. That is bad juju, even if you pay them on time.
Credit scoring likes some open credit. So, if you are credit averse and don't have hardly any trade lines open, go get two or three.
Be careful about being too aggressive getting cards. You don't want to all of the sudden get 20 of them. The system could perceive that as an attempt to run up credit.
Use your credit cards to buy groceries once a month and then pay it off. Do that once a month for a year for two three cards and you'll have big scores in a year.
Credit scores frown heavily on recent foul ups. The more recent the foul up the more the scoring system believes you to be in the middle of a financial storm. Be very careful if you are looking to use your credit soon.
The scoring system is logical. Be logical when sculpting your credit and watch your scores rise.
When getting a home mortgage you will be evaluated primarily by the Fair Isaac credit scoring system. This is a proprietary credit scoring system out of which comes scores associated with your history.
People tend to oversimplify things. When it comes to their own credit scores they assume that as long as payments have been on time the scores should be good.
This is only partially true. Your credit score is generated from numerous factors in combination. Thereafter, no one knows except the developer and those in the real know.
Here is what we do know. You obviously need to keep a clean payment history. Remember, companies report you late only when you've exceeded thirty days past your due date.
When you have lots of available credit which is relatively unused it looks better on your scores. It basically means you have discipline and cushion to fall back on if in need.
You definitely don't want to be maxing your cards out. That is bad juju, even if you pay them on time.
Credit scoring likes some open credit. So, if you are credit averse and don't have hardly any trade lines open, go get two or three.
Be careful about being too aggressive getting cards. You don't want to all of the sudden get 20 of them. The system could perceive that as an attempt to run up credit.
Use your credit cards to buy groceries once a month and then pay it off. Do that once a month for a year for two three cards and you'll have big scores in a year.
Credit scores frown heavily on recent foul ups. The more recent the foul up the more the scoring system believes you to be in the middle of a financial storm. Be very careful if you are looking to use your credit soon.
The scoring system is logical. Be logical when sculpting your credit and watch your scores rise.
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posted by Debt Consolidation Loan at
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