DID YOU KNOW?

Having credit pulled by multiple banks or brokers for a pre-qualification DOES hurt your credit score!  Don’t be fooled by that “Urban Legend”.  It does affect your score.  Understanding how your score and other  criteria affect the decision making process is  instrumental in a clean deal.  To learn more, keep reviewing our web site or call us, we can help.  Experience the difference knowledge can make.

It’s to your advantage to make sure your credit history is “clean” before visiting a lender’s office. When you call our office for a consultation, we may recommend that you obtain your own credit report if you do not already know your score, or if you know your score may not be great, we can help you fix it. 

If you do not know what your credit scores are, following these tips could improve your credit rating enough to qualify for the home of your dreams.

WHAT DOES YOUR REPORT SAY?

It’s a good idea to review your credit report once a year, but it’s especially necessary before you apply for a loan. Order a report from all three major reporting agencies — Equifax, Experian, and Trans Union Corp. Information (and errors) on one report may or may not be identical to what appears on another. 

Each of the three agencies can provide a copy of your report. The reports can be obtained on each individual site, and the cost varies from $0 to $30 per report. Only Experian will supply one copy each year at no cost, but keep in mind that any charge is minimal compared to how important the report is to your home ownership. 

BE ACCURATE

Loan applications always require a summary of your debts. Be sure that your summary lists all your debts. Lenders can tell whether something has been left out on purpose. Your credit report should verify what is on your application, not expose new or damaging information.

Although bankruptcies, judgments, and collections may jeopardize your chances for a loan, other, less serious blemishes on your report are still potentially damaging. The number of times payments were late — by 30, 60, and 90 (or more) days — as well as a listing of creditors and high balances, will appear on your report. If you happen to be 30 days late one time, you may be okay. But if you’ve been 60 or 90 days late on more than one occasion, your lender will probably want an explanation in writing.

When you apply for a mortgage loan, the lender will be more interested in your mortgage history than your department-store account history. The way you’ve handled similar obligations in the past demonstrates to the lender that your mortgage payment will be a priority.

ERRORS

If you find mistakes on your credit report, you can resolve the problem with the credit agency. But if incorrect information comes from a creditor you’ll need to work with the creditor first. In many cases, writing to the creditor to explain your dispute may resolve the problem.  We can help you with this, call our office.

If your last name is one used by many people — such as Smith or Jones — or if your name ends with Jr. or Sr., it’s even more important to check your credit report. People with these names are the ones most likely to have mistakes on their files. Also, be sure that joint accounts are closed if you are recently divorced. This helps avoid anything from your former spouse’s record showing up on your report.

THE BASICS:

1. While each person's individual credit profile can be improved in its own way, there are five basic things that everyone can do to give their credit scores a boost:
2. Be punctual - Pay all your bills on time each month. Late payments, collections, and bankruptcies have the greatest negative effect on your credit scores.
3. 
   Check your credit reports regularly and take the necessary steps to remove inaccuracies - Don't let your credit health suffer due to inaccurate information. If you find an inaccuracy on your credit report contact the creditor associated with the account or the credit reporting agencies to correct it immediately.
4. Manage your debts - Keep your credit card account balances below 35% of your available credit limits. For instance, if you have a credit card with a $1,000 limit, you should try to keep the balance owed below $350.
5. Give yourself time - Time is one of the most significant factors that can improve your credit score. Establish a long history of paying your bills on time and using credit responsibly. You may also want to keep the oldest account on your credit report open in order to lengthen your period of active credit use.
6. Avoid excessive inquiries - A large number of inquiries occurred over a short period of time may be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay. Apply for new credit in moderation.
   

CONTACTS:

Equifax: P.O. Box 740241, Atlanta, GA 30374-0241, Phone: 800-685-1111, Website: Equifax.com

TRW/Experian: P.O. Box 949, Allen, TX 75002, Phone: 888-397-3742, Website: Experian.com

Trans Union Corp: P.O. Box 390, Springfield, PA 19064-039, Phone: 800-888-4213, Website: Transunion

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