Six Steps to a Higher Credit Score.
Whether you are planning to buy a new car or apply for a new mortgage your credit score is going to play a big part in the type of loan you will qualify for. Use a mortgage calculatorto find out how much you can save. First let’s define some concepts that are used in credit reports which affect your rating:1- Dates: Every credit line item has a number of dates associated with it, and they are:A- Date Opened; which is the date the account was opened.B- Date Reported; is the last date the account was updated by the lender..C- Date Closed; needs no explanation.D- Date Last Late; which also is kind of obvious.2- Balances: Your credit report will also show several balances, consisting of:A- High Balance, or credit limit.B- Present Balance.C- Past Due amount.You can apply the following rules to every line in your credit report.1- Pay off outstanding collection accounts only if it is originally dated within the last two years or if the lender/collection agency is updating the report. Check all the dates associated with the item and if they are older than two years, leave them alone. Believe it or not paying an item older than two years will actually have an adverse effect on your credit score. 2- Carefully plan to pay as much debt as possible. The object of the exercise here is to bring down revolving accounts down to 50 of the maximum credit line or even to under 33 if possible. If your co-borrower has a card say with only 5 or so against it, then borrow on that card to up to 30 and use the money to pay down one of your high balance cards or vise versa.It is important to pay attention to the total credit line and total debt also. Having 3 cards of zero balance with credit limits of $150 to $300 each is no good if you have one $3500 limit card with a $2500 balance.3- Do not pay off and close a revolving account. Closing a revolving account has an immediate adverse effect on your credit rating.4- Call your credit card companies and see if they will increase your credit limit. This will bring the ratio of outstanding debt to credit limit down.5- Don’t buy a car! Nothing brings down a credit score more dramatically than a new car loan. A fixed term loan will have a negative effect on your credit score for up to 6 months. 6- Get all in accurate information removed.
About the Author
Raz is mortgage industry veteran specializing in the origination and closing of residential purchase refinance and construction loans. Visit their website at: http://www.mortgagecalculatorsandrates.com/
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