Credit Tips

Credit Tips

In the mortgage business, we are coaching clients daily about how to improve their credit score.  We have learned the most effective way to boost credit scores, and when necessary, we partner with highly experienced credit repair specialists at Credit Law Center to get clients ready to achieve their investing goals.  Today I am sharing some of the tips and best practices that can help you get your credit score up and keep it there.

  • Consumers have a 15-day window to shop mortgages (it’s called the right to shop)
  • You don’t want to get your credit pulled more than 10 times in a 12 month period-that is when it can start to impact your FICO score negatively.
  • The longer a credit card has been opened, the greater impact it has on your FICO. Pay down balances on older cards first for maximum score boost.
  • The sweet spot for a credit card balances is 3 to 5% of the limit, not 0%. (This will give you the most points possible)
  • Always check the reason codes on a credit report. (this is located next to each credit bureaus score-this indicates, in order, what is affecting the credit score the most)
  • Paying off a collection can and will lower the FICO scores. It changes the last date of activity and date reported; most weight is given to how recent the activity.
  • One thirty day late has the potential to lower your score by 50 to 100 points.
  • Medical collections do affect FICO scores in a negative manner just as any other collection will (even though you can likely get it through underwriting).
  • 79% of credit reports contain errors.

The best credit score potential is achieved with 2 revolving trade lines ( credit card, store card) and 2 Installment trade lines ( mortgage, car )

Related Posts

Eco-Friendly Home Buying

Eco-Friendly Home Buying For Today’s Homebuyer In a world increasingly focused on sustainability, the allure of eco-friendly living has never been more prominent. Making the decision to buy an eco-friendly

Read More »