First Step To Improve Your Credit Scores


Many people don’t know where to start when it comes to improving your credit scores.  Some consider paying off collections, paying off credit cards, or even applying for new credit. Here are …;

 

Here are some useful tips on where you should focus your efforts when it comes to improving your credit scores:

  1.   If you are “past due” on any account, get caught up.  A past due balance reported to your credit can significantly lower your credit scores.
  2.   Pay down your credit card balances.  Credit card balances can drive your scores up or down depending on the balance percentage of the limit.  Pay your balances down below 30% of the credit limit to improve your scores.***Tip- most banks report your credit card balance to the credit bureaus at the time of your statement.  So pay down just before your statement date for quick reporting, and quick score increase.
  3.  Settle your collection accounts.  Collection accounts impact your scores as a unit, not a dollar amount.  So your $50 collection can hurt your scores just as much as a $5000 collection.  It’s based upon when the account was open and last reported.  So the newer the collection, the more of an impact to your scores…pay those first.
  4.   Opening new credit.  If you have no, or very little open credit it’s important to have multiple account types open and in good standing on your report.  Credit diversity is rewarded by a higher credit score.  A credit report that has 2 open credit cards and 1 installment account (auto loan, signature loan, etc..) has a higher credit score than a credit report that has 3 open credit cards (revolving accounts).  The ability to manage different account types reflects a higher credit rating.

 

 

 

 

 

Source: First Step To Improve Your Credit Scores

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Author: Louisville Kentucky Mortgage

I have helped over 589 Kentucky families buy or refinance their home over the last 18 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process. I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues. You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process. Give us a try or let us compare your options on your next mortgage transaction. Call me locally at 502-905-3708. Free Mortgage Pre-Qualifications same day on most applications. Email me at kentuckyloan@gmail.com with your questions I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer with little money down, we offer Kentucky Housing or KHC loans with down payment assistance. This website is not an government agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. NMLS# 57916 http://www.nmlsconsumeraccess.org/ Joel Lobb Senior Loan Officer (NMLS#57916) American Mortgage Solutions, Inc. 800 Stone Creek Pkwy, Ste 7, Louisville, KY 40223 phone: (502) 905-3708 Fax: (502) 327-9119 kentuckyloan@gmail.com Company ID #1364 | MB73346 http://mylouisvillekentuckymortgage.com Equal Housing Lender

1 thought on “First Step To Improve Your Credit Scores”

  1. Reblogged this on Kentucky First Time Home Buyer Programs for 2016 FHA, VA, KHC, USDA, RHS, Fannie Mae Loans in Kentucky and commented:

    Here are some useful tips on where you should focus your efforts when it comes to improving your credit scores:

    If you are “past due” on any account, get caught up. A past due balance reported to your credit can significantly lower your credit scores.
    Pay down your credit card balances. Credit card balances can drive your scores up or down depending on the balance percentage of the limit. Pay your balances down below 30% of the credit limit to improve your scores.***Tip- most banks report your credit card balance to the credit bureaus at the time of your statement. So pay down just before your statement date for quick reporting, and quick score increase.
    Settle your collection accounts. Collection accounts impact your scores as a unit, not a dollar amount. So your $50 collection can hurt your scores just as much as a $5000 collection. It’s based upon when the account was open and last reported. So the newer the collection, the more of an impact to your scores…pay those first.
    Opening new credit. If you have no, or very little open credit it’s important to have multiple account types open and in good standing on your report. Credit diversity is rewarded by a higher credit score. A credit report that has 2 open credit cards and 1 installment account (auto loan, signature loan, etc..) has a higher credit score than a credit report that has 3 open credit cards (revolving accounts). The ability to manage different account types reflects a higher credit rating.

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