Some Novel Ways to Grow Your Credit Scores

By now many of us know the usual ways to grow or maintain our credit scores…keep our balances at no more than half (preferably a third) of our account limit and pay on time.  There are a few more ways to grow or limit damage to your credit scores, and they are outlined in Dana Dratch’s Banrate.com article, 5 uncommon ways to raise your credit score.  This article is a good read for those who are working on boosting their credit scores!  Might as well hit those scores from all angles!

To the tricks of the trade~  Rosemary, Atkinson-Thompson Group

Take the Mystery Out of FICO Scores and Grow Them

 

 The mystery of credit scores!  For so many people, how they are computed is a mystery, and knowing how to raise them is just as mysterious.  Daniel Gross is economics editor and columnist at Yahoo! Finance.  Check out his article and accompanying video, FICO Questions Answered:  Fair, Isaac CEO Reveals 3 Key Ways to Improve Your Score, for some very helpful information and direction.

To healthy credit~  Rosemary, Atkinson-Thompson Group

Financing Options for First-Time Homebuyers

Don’t let financing a mortgage scare you!  There are options, and a loan officer at a reputable lending institution will explain your options to you.  If you ever need a referral to one or more reputable loan officers/lending institutions, let us know; we will be delighted to assist you!   In the meantime, to understand the options available, not only for first-time buyers, but for many repeat buyers, check out Robert Stammer’s article for Investopedia, Financing Basics For First-Time Homebuyers.  It will allow you to enter the process of procuring a home mortgage with a good idea of what you might want to consider.  Of course, a good loan officer will guide you through your options, helping you select the best one for you, but it is nice to be familiar with the lingo and have some of the mystery taken out of home mortgages! 

To finding the right home loan for you~ Rosemary 

Avoiding Credit Card Fees

Credit card companies…they always try to stay one step ahead of their consumers!  Since new legislation has come into effect limiting credit card fees, credit card companies are thinking up NEW fees!  A good read on how to avoid those fees is contained in RISMedia’s article, 6 Strategies to Help Consumers Avoid New Credit Card Fees.  Definitely some good advice contained in this one!

To keeping an eye on those credit card companies~  Rosemary

Some Worthy Credit Card Tips to Avoid Credit Score Pitfalls

Oh, keeping an eye on applying for and using credit cards.  It can have such an impact on your credit scores, and we all need to be more cautious than ever about keeping our credit scores heading north in this more difficult lending environment.  Cynthia J. Drake, writing for CreditCards.com, provides some sound advice in her article 10 Things Not to Do When Applying for a Credit Card.  A good one to read and heed!

To healthy credit scores and all that they can bring~  Rosemary

Credit Cards: Use Them!

Many consumers don’t realize how the judicious use of credit cards can send their credit scores upward.  Conversely, they don’t realize how not using their credit cards can send their credit scores downward.  Don’t get yourself into debt, but charge a tank of gas, one meal out, a new piece of clothing (You get the idea!) per month on a credit card and pay that amount off when your payment is due.  This will drive your credit scores north…promise!  Jeremy M. Simon of CreditCards.com wrote an informative  article,  Unused credit cards can hurt you, on why using your credit cards is important to your credit scores.  A good read! 

To higher credit scores~  Rosemary

Why Banks Are Denying Home Loans

Having been a loan officer in my pre-real estate consultant life, I can attest to the immense change that has occurred in the mortgage lending world since 2007.   Even though I did not work in subprime lending, but dealt with what we referred to as “A-Paper” borrowers, I was exposed to subprime lending, and it is now virtually non-existent.  But even for some  borrowers that could have  gotten a  mortgage loan three years ago, times have changed.  Although  it was mortgage lenders that got themselves into the troubles they experienced, they have raised the bar considerably for those applying for mortgages, in some cases going too far in the correction direction.  With time, mortgage lending standards will come back to a common-sense middle ground, but in the meantime,  it is a good idea to understand the current standards under which mortgage lenders are operating.  RISMedia’s article, Top Seven Reasons Banks Are Denying Home Loan Requests, outlines the main reasons that mortgage lenders are denying loans in today’s market.  Some of them are the same reasons that a loan might have been denied three years ago (i.e., credit scores); others, such as self-employment, are more recent stumbling blocks.

Don’t panic or assume you can’t get a mortgage loan; people are still getting home mortgage loans every day.  Betsy and I have yet to have a client that did not qualify for a loan for the house they wanted to purchase.  But, as we are always advising, first seek the expertise of a knowledgeable real estate agent when you decide that you would like to purchase a home.  And as we insist with all our buyer clients,  make your next stop a meeting with a trustworthy loan officer/lending institution.  They will be able to tell you exactly the amount of mortgage for which you will qualify, and they will provide you with a pre-approval (you want a pre-approval, not a pre-qualification!) with which to go house shopping. 

To a common-sense lending environment and improved real estate  market~  Rosemary       

 

Should Credit Be Extended to Everyone?

Should credit, including mortgage loans, be extended to all?  Maybe not, since extending credit to unworthy borrowers contributed considerably to the current economic crisis (as did many other things, trust me!).  Liz Pullman Weston’s article for MSN Money, Some people can’t get credit? Good!, is an excellent article proposing why credit should not be freely extended to all.

Work on those credit scores and get a realistic handle on what you can manage~  Rosemary 

Improving and Understanding Your Credit Scores

The above image is a very useful illustration of the methodology the three major credit repositories use to calculate your credit scores.  Did you know that you should utilize only 10-30% of your credit limit on any given credit card and on a combination of your credit card limits?  Did you know that it is important to have varied types of credit, like a car payment and/or a mortgage in addition to your credit cards? 

Your credit scores matter a lot in your life, from enabling you to access credit when you need it to qualifying for a job.  Yes, most employers will pull your credit before hiring you; they feel that your handling of your financial matters is a reflection of your  responsibility (many times not true, especially during recent economic times,  but often considered in the hiring process).

So, pay attention to the pie image  above…print it off and remind yourself often of how your credit should be handled to grow your credit scores.  I strongly recommend viewing a very useful video from TodayShow.com, 5 Ways to Improve Your Credit Score… some very solid advice  there for taking steps to begin improving your credit scores (and understanding how they are computed!)  and some great links to related articles.  Getting your credit scores all puffed up and keeping an eye on them can be a terrific gift to yourself for your future.  Go for it; invest the time  to get your finances/credit scores  under control and working in your favor!

You’ll be glad you got started~  Rosemary 

The Pitfalls of Unused Credit Cards

We all need to be cautious about accumulating credit card debt, but there are ”tricks of the trade” for maintaining high credit scores, and consumers are unaware of many of them.  Should you keep an account and never use it (keep in at a zero balance), or should you close the account?  Ahh, don’t close it; closing an account can ding your credit score!  And don’t ignore that credit card!  Use it periodically and pay it off when the bill comes in; this will drive your credit scores upward.  Click here for an advisory article by Jeremy M. Simon for CreditCards.com, To Preserve Credit Score, Don’t Leave Credit Cards Unused.  Take it from a former loan officer, Jeremy’s is good advice!  Much driving your credit scores is responsible activity and, very importantly, the amount of credit available to you vs. the amount you have used…available credit card limits compared to credit card balances.  Just be careful not to leave your credit cards dormant!

Best~ Rosemary