Do You Know Your Credit?

We all know how important our credit scores are.  Potential landlords, insurance companies, creditors, employers, lenders & many others are interested in your credit score today. 

Credit scores are calculated based on these factors:

35% Payment History - Tracks the # of accounts being paid.  Negative impact to score when payments are made late & how long since your last late payment.
30% Amounts You Owe - Tracks how much is owed on your accounts in relation to your credit limits.  Try to stay below 35% of your Max credit limit for better credit scores!
15% Length of Your Credit History - Tracks the total length of time you have owned each of your accounts.  Longer than 2 years is good.  Don't close old credit card accounts!
10% Types of Credit Used - Tracks the total # of accounts and types of accounts.  It's good to have small installment payments & 3 or more active revolving credit cards.
10% New Credit - Tracks the # of accounts recently opened.  Also # of recent inquiries.

 

  Lenders assess your middle score as follows:

 

 

          FICO Score 

           < 619

                 

 

        Grade

     High risk

          620-660

    Uncertain

          661-720

   Acceptable

          721-749

   Very good

            >750             

    Excellent

Because our credit scores are so important & come into play in so many facets of our lives, we now need to do everything we can to raise them.  Most of us know what can be done to improve our credit scores, but it can be difficult to know where to start.  Unfortunately, credit reports commonly include errors, incomplete information & misleading information.  In fact, recent studies show that up to 79% of credit reports contain some type of error.

It's time to translate that knowledge into action now.

If there is debt you need to overcome or if you need help managing your credit cards, you can get started today.  Aside from improving financial habits for the future, it is important to repair your existing credit report.  Any misleading or inaccurate information can & should be disputed.  We can help.  Click Here to learn how to correct credit mistakes.

Call us today at AmeriBest Mortgage and we will be happy to assist you in getting a copy of your credit report to help you prepare in buying your home!

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