CREDIT TIPS
As you look to improve your credit situation, Credit Resource Group is a local resource to help you! As a trusted local credit repair company, they will guide you through the process and always look to save you money. The last thing you can afford is money spent on results that aren’t getting you anywhere and wasted time. You need to get up to speed fast so you can get back on track. Here is a comprehensive review of different credit tips.
CREDIT TIPS, CHUNKS
There are several “chunks” that impact your credit score. Some chunks are more critical than others. We’ll rate each piece of the credit score improvement toolbox on a scale of one to ten, with ten being “prime importance,” five being “average importance” and one being “low importance.”
CREDIT TIPS, BAD CREDIT LISTINGS
Level of Importance: 10 out of 10
The biggest score-killer is the presence of negative credit listings. These may include public records, collection accounts, charge-offs and late payments. The bulk of the credit score depends on credit history.
CREDIT TIPS, AMOUNT OF REVOLVING CREDIT USED
Level of Importance 8 out of 10
This rates the amount of your available credit that’s already being used. In other words, how loaded up are your cards and credit lines? This part of your credit score adds up the total of all the revolving credit you have used, and then divides that by the sum of your available revolving lines of credit. This provides what credit experts term a credit “utilization ratio” that gives the scorer an idea of how extended your credit is. The more maxed out your credit looks, the more likely the banks believe you may default on your debts (and the lower your credit score will go).
CREDIT TIPS, AGE OF CREDIT
Level of Importance: 7 out of 10
If your credit is newly established, less than three years, then your credit inexperience will drive down your score. This is measured by the age of your oldest account.
CREDIT TIPS, AMOUNT OF CREDIT
Level of Importance: 6 out of 10
The more credit you have the better it is except when you have too much. Basically, your credit score will be helped by having a solid amount of open credit (roughly six or seven open accounts). Although too much credit is less important (a 4 out of 10), it can still negatively impact your score.
CREDIT TIPS, TYPE OF CREDIT
Level of Importance: 5 out of 10
Oddly enough, the type of credit you use can hurt your credit report score as well. If you use credit through finance companies or other high-interest credit sources or have too many installment loans (other than a conventional home- mortgage or automobile loan), it will cause your score to dip. For some reason, credit scoring assumes that high-interest finance is a sign of a bad borrower.
CREDIT TIPS, NUMBER OF INQUIRIES
Level of Importance: 4 out of 10
Whenever you apply for credit, an “inquiry” is generated on your credit report. Some inquiries slightly depress your credit score and others do not. If you’re working your credit score and you’re thinking about applying for another credit line, you should talk to someone knowledgeable. It may or may not hurt you to apply again.
For more information on credit repair, raising your scores and any other questions involving credit please contact Ron Beauchamp 832-512-0143, ron@creditresourcegroup.com
By: Steve Head, Mortgage Expert, Top Producing Loan Officer, Texas Premier Mortgage President
For more information about our entire portfolio of mortgage products, our loan options and how it may apply to you, please contact us direct at 281-627-4222 or submit the quick quote form on this page. Home Page: Best Houston Mortgage Lender https://www.txpremiermortgage.com
