1.Closing out old, inactive accounts will help your score.
Your credit score is partially based on your length of credit history and your utilization rate. By closing old accounts, you can make your credit history appear shorter and as a result actually decrease your score. It can also reduce the total amount of available credit, which can also affect your score.
2.Opening (but not using) accounts will help your score.
Your credit score is affected by how well you manage the credit you do have over a period of time, not by how many credit cards you have or the available balances.
3.You should avoid using your credit cards at all.
If you're not using your credit, you're not building credit history. Use your credit cards from time to time and promptly pay off the balance.
4.Dispute letters can clean up your bad credit.
Dispute letters may force the removal of negative items temporarily, but once the lender can prove the records accuracy, it will reappear on your credit.
5.Paying off old debts and judgments will help your score.
Don't expect a "negative" to disappear by paying it off. Negative records remain on your credit for 7 - 10 years, regardless of any remedies you've made.
6.Credit inquiries hurt your score.
Inquiries alone do not make a big enough change in your credit score to make a difference when it comes to lenders.
7.Using a credit counseling service lowers your score.
Credit counseling services no longer figure into the FICO scoring system. So although your report might indicate you are receiving credit counseling, using those services won't lower your score.
8.There's a set formula for obtaining good credit.
Credit is a very individual thing. Credit scores look at everything and take it all into account.
9.You can get a perfect score.
Getting a perfect score of 850 is nearly impossible. Your credit score is a reflection of your credit risk and regardless of your credit history, there is always a risk.
Interest rates are currently below 4.25% and you only need a downpayment of 3.5% on FHA or 5% on conventional loans. Also, USDA100% financing is back and you can now get in for zero money down. Income limits and certain restrictions apply.
It's a great time to buy real estate so give me a call and let's start your home search today! Also, if you are thinking about selling, a complimentary analysis of your home’s value and what you can net if you sold your home “now”, contact me today!
Thanks for your time and I look forward to assisting you with your real estate needs.
Author:Sherry Cabrera Phone: 214-454-6969 Dated: March 8th 2016 Views: 2,164 About Sherry: Sherry was raised in Mississippi and moved to Dallas 16 years ago with her daughter. Prior to movin...
The market is expected to still continue to remain strong. Hom
"Trenton Johnson is the best agent I've ever had. I'm a first-time home buyer, but I had gone through three other agents over a 12 month period that either weren't good listeners, wasted my time and gas, didn't communicate with me in a timely or efficient manner, didn't explain the process clearly, kept me in the dark, weren't professional, or asked me what I should do as if I was the agent. "