RIS Media published a report to teach consumers about how to maintain and improve one’s credit score. Everyone has become more concerned about their credit scores these days, especially when a better score can result in lower credit interest rates and payments saving thousands of dollars from interest. With this in mind, many consumers are paying more attention to their credit and, unfortunately, in the process of trying to make it better, they are harming their credit score.
A consumer credit score is made up of five key components:
35% : Payment History - Types of accounts (credit card, mortgage, etc.), accounts paid as agreed, number of past due accounts, etc.
30% : Amounts Owed - Balances of current loans, debt-to-credit ratio, proportion of installments still owed, etc.
15% : Length of Credit History - Time since accounts opened, last activity, etc.
10% New Credit – Recent inquiries, new accounts, etc.
10% Types of Credit Used - Mortgages, credit, retail, etc.
Here are a couple of pointers that I have been instructed by loan officers that I work with include the following recommendations to buyers of
Cincinnati Real Estate to try to optimize your credit score. The first thing is that you should be careful about is using most of your available credit each month. I was told about a situation where the person has a $5,000 credit limit and uses about $4000 of that each month. Even though they pay the card off in full monthly, the individual’s credit score is negatively affected. The credit bureaus advise spreading your purchases over multiple cards or raising your limit on the card you use most often to lower the debt to credit ratio on it.
Another recommendation is to keep cards open even if you do not use them often. You can buy a small item once per month on the card to keep it active. Also it is advisable not to cancel older cards because they help to maintain the length of your credit history. Keeping older cards active boosts your credit score.
Finally, since too many credit inquiries can can lower your credit score it is important to note that inquiries with 90 days of one another for the same purpose do not lower one’s score. So if you have multiple mortgage brokers or car dealerships requesting your credit report, feel free to shop around without worrying that your credit score will be negatively affected.
Comments
cinplify.com
Jun 10th, 2009Cincinnati Real Estate Buyers :How to Maintain and Improve Your Credit Score…
Tips for Cincinnati Homebuyers to improve and maintain your credit report. This article unlocks the mystery of how your credit score is composed….
How to Maintain and Improve Your Credit Score | Cincinnati Living …
Jun 10th, 2009[...] more here: How to Maintain and Improve Your C… Share and [...]
How to Maintain and Improve Your Credit Score | Cincinnati Living … « Improvers
Jun 10th, 2009[...] Excerpt from: How to Maintain and Improve Your Credit Score | Cincinnati Living … [...]
Lucky Luck » How to Maintain and Improve Your Credit Score | Cincinnati Living …
Jun 10th, 2009[...] here to read the rest: How to Maintain and Improve Your Credit Score | Cincinnati Living … This entry is filed under Credit. You can follow any responses to this entry through the RSS 2.0 [...]
Selecting a Credit Card | Credit Card News
Jun 10th, 2009[...] How to Maintain and Improve Your Credit Score | Cincinnati Living … [...]
Selecting a Credit Card | Credit Card News
Jun 10th, 2009[...] How to Maintain and Improve Your Credit Score | Cincinnati Living … [...]
Real Estate Taxi (110 comments.)
Jun 15th, 2009Just really pay attention to how you spend your money. Pay off your credit cards, and keep the spending to a minimum. Over time it will improve.
Credit Repair and the Holiday Season | How To Fix Credit Quickly
Jun 20th, 2009[...] How to Maintain and Improve Your Credit Score | Cincinnati Living … [...]
Real Estate Taxi (110 comments.)
Jun 30th, 2009Great Article! The main thing with cleaning up your credit score is too just pay for what you can and stop buying things you dont need.
fha mortgage loan
Sep 11th, 2009fha mortgage loan…
You would be hard pressed to find a lender who will refinance your mortgage or give you a home equity loan on a home that is currently for sale. While lenders have different policies on the subject, a lender is going to be cautious about lending money …
what is fha loan
Sep 26th, 2009what is fha loan…
Foreclosure Assistance USA of Kenwood and American Foreclosure Professionals of Blue Ash with several violations of Ohio consumer protection law. A number of consumers have complained that the companies did not deliver on promises that they would halt …