The Credit Bureaus will not give you the formula on how they calculate credit scores. Since 1991, I have reviewed hundreds of reports. I have found that a majority of reports have errors or have unauthorized accounts. It is a good idea to access your credit report once a year to evaluate and audit your accounts. If for any reason you feel an agency has reported in error, you must contact the agency and provide the proof immediately. If you wait too long, it could cost you thousands later. If you use a credit monitor service, be careful and make sure its a reliable company. Watch for hidden fees. I still think being in control of your own report makes better sense. The information the I provide is not factual, but seems to work with most of my clients. Since 1991, I have gathered information from credit bureaus and previous clients. When following these simple guidelines, I have experienced credit scores increase to remarkable levels. As anything, nothing is guaranteed but worth the effort.
A credit card with a $1000 limit and a balance of $600, you are 60% maxed to your limit. Keep balances under 50%. If your funds are limited and preventing you to pay it down, try calling the credit card company to have your limit increased.
Excessive active credit cards that have no balances could cause problems.Agencies would see this as a risk (available credit is available debt).Six cards should be the maximum open and active.
Excessive balance transfers. Excessive would be, over seven transfers in a one-year period.
Try to stay away from department store card offers, sometimes they offer a discount if you apply at the time of purchase; they usually turn into high rate credit cards and have no benefit for future purchases. Read the fine print. Do not take someones word on how it works.
If a credit offer has no payments or 0% for a certain amount of time, check the small print. (Caution) make sure you pay it off before the deadline or you will be charged back interest which defeats the purpose
If you are running late on a payment, call the credit card company. They usually work with you on a payment without reporting to the credit company. This may work 2-3 times without a late payment fee.
Too many inquiries will hurt your score.If you are shopping for a home or car loan usually within one month, it will not hurt your score.Pay for a credit report that displays your scores and use it to do your shopping.If the creditor cannot qualify you using that report, then maybe they lack the knowledge of finance, ask plenty of questions.If an offer given to you is acceptable, then the creditor will need to run a new report at that time. Reports are only good for on average 30 days.
Length of residence shows stability. Excessive change of address could cause a problem. This will show on the report.
Employment also shows on the report. Constant changing of jobs may also affect your score; however, sometimes it is unavoidable.
When refinancing a home loan and have heavy balances on credit cards, pay them off with the loan. A tax benefit and lower monthly payment could increase your quality of life, extra cash for today.(always check with your tax advisor)
Most people on a set budget intend to pay off short-term credit cards; it never seems to workout. Aside from personal living, they end up paying for a couple of years and realize balances do not go down.
The number one priority for credit strength is timely mortgage payments.If you experience cash flow problems, postpone the phone bill, water bill and items that are not reportable to the credit report. Postpone what you can without adversely affecting lifestyle. Lenders always look at the mortgage payment history first and then the credit card and auto payment history, credit bureaus mainly report on those items.
Cannot decide if refinancing is right for you?How much will you save over the life of the loan?
Is it worth it? Money saved is money earned.
The information provided is strictly an opinion, and not intended as evidence for legal reference for dispute matters. This information is for private use. We are not responsible for adverse reactions that may contradict the statements. The information is solely an opinion and from experience.
Consolidate Debt Guide Tools and resources to help you consolidate your debts even if you have bad credit
Copyright@2003 All rights reserved. The Lenders Bowl, Inc. 14320 Ventura blvd suite 175 Sherman oaks, CA 91423
The Lenders Bowl, INC. 14320 VENTURA BLVD STE 175 Paul Valles SHERMAN OAKS, CA 91423-2717
