Is it really some revolutionary idea that good credit helps us buy stuff? Of course not, but we need to understand the system to maximize our chances.
It is true that your credit scores, ranging from 400 to 850 are the main determinant when buying a home with a mortgage. The credit scores give lenders an easy snapshot of your credit picture.
People tend to oversimplify things. When it comes to their own credit scores they assume that as long as payments have been on time the scores should be good.
This is only partially true. Your credit score is generated from numerous factors in combination. Thereafter, no one knows except the developer and those in the real know.
Since we started with payment history you should be aware that you're not late until thirty days post the due date. Keep that in mind when in a pinch. You pay all the way up til the end and still have a clean payment history.
When you have lots of available credit which is relatively unused it looks better on your scores. It basically means you have discipline and cushion to fall back on if in need.
High balances on the credit cards signal that you may be in trouble. Any financial storm can cause huge damage to whole credit picture. Scores don't like this signal.
A lack of credit history typically works against credit scores. Do yourself a favor and get 2 or 3 slats of plastic. Start using them immediately and pay on time of course.
Do this in moderation. You don't want to go out and open a whole plethora of trade lines. This may be seen as a move to use a bunch of debt.
Make very moderate purchases with your small number of cards and be sure to pay the entire balance off by the end of the month. In a year you won't believe your scores.
Credit scores frown heavily on recent foul ups. The more recent the foul up the more the scoring system believes you to be in the middle of a financial storm. Be very careful if you are looking to use your credit soon.
The scoring system is logical. Be logical when sculpting your credit and watch your scores rise.
It is true that your credit scores, ranging from 400 to 850 are the main determinant when buying a home with a mortgage. The credit scores give lenders an easy snapshot of your credit picture.
People tend to oversimplify things. When it comes to their own credit scores they assume that as long as payments have been on time the scores should be good.
This is only partially true. Your credit score is generated from numerous factors in combination. Thereafter, no one knows except the developer and those in the real know.
Since we started with payment history you should be aware that you're not late until thirty days post the due date. Keep that in mind when in a pinch. You pay all the way up til the end and still have a clean payment history.
When you have lots of available credit which is relatively unused it looks better on your scores. It basically means you have discipline and cushion to fall back on if in need.
High balances on the credit cards signal that you may be in trouble. Any financial storm can cause huge damage to whole credit picture. Scores don't like this signal.
A lack of credit history typically works against credit scores. Do yourself a favor and get 2 or 3 slats of plastic. Start using them immediately and pay on time of course.
Do this in moderation. You don't want to go out and open a whole plethora of trade lines. This may be seen as a move to use a bunch of debt.
Make very moderate purchases with your small number of cards and be sure to pay the entire balance off by the end of the month. In a year you won't believe your scores.
Credit scores frown heavily on recent foul ups. The more recent the foul up the more the scoring system believes you to be in the middle of a financial storm. Be very careful if you are looking to use your credit soon.
The scoring system is logical. Be logical when sculpting your credit and watch your scores rise.
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