Visit to learn more! - Mortgage Broker and Real Estate Finance Company - is your solution for Residential, Commercial, Investment, and Hard Money Real Estate Financing. We service all of your home loan purchase, refinance, home equity, debt consolidation and bad credit needs.

Tuesday, May 29, 2007

The time has come to talk about your credit score...

Over the past week I have had a few inquiries from friends and clients asking about credit and credit scores. My answer is always....where do I begin? Nothing can cost or save you more than a well established credit history! I have a feeling this post will be multi-faceted and will be completed over a the next few days.

The best way to start talking about credit is to pull a report for yourself...AND THEN we take a look and see where you stand. The only real website that allows a person to check their own credit history is On that site you can pull your own credit score once annually for free. On a positive note, it will not negatively affect your rating as it does when a broker or bank may pull your credit. On the downside, this site will not show you a numerical score when you pull the report unless you pay $7 per will only let you view your history from each of the three credit reporting bureaus (Experian, Trans Union and Equifax).

The wisest thing to do in order to build your credit worthiness as a young adult is to realize quickly that credit can not be earned in a day! In order to apply for debt, you must prove that you can manage debt. During your college years the easiest way to quickly put together an awesome score would be to pick up two or three credit cards as soon as possible. Use them one time, pay them off and forget they even exist. The fact that you do not use the cards makes no difference. Each month that passes earns you a mark for an on-time payment that is slowly building your score! Check out if you are looking for help in finding a card that fits your style. Another good option if your parents trust your spending habits is to have them place you on one of their credit card accounts. You immediately pick up their payment history and can quickly build your score with this tactic.

If you should decide to use the credit cards on a monthly basis, be very careful not to charge to anywhere over 20-30% of your credit limit. If you should happen to spend over that percentage, the best thing to do is pay the card back down to below a 20-30% level by the months end to avoid hurting your score. In my opinion, lenders and investors like to see that even though you have credit available to you, you are not so strapped for cash that you use the money and cannot pay it back down in a timely fashion.

And with this I am off to bed. More lives to change to secure, paper to push. Gnight all...

"When I asked my accountant if anything could get me out of this mess I am in now he thought for a long time and said, 'Yes, death would help'." - Robert Morley

No comments:

You can find great local Florida real estate information on Jared Schmidt is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.
Add to Technorati Favorites Add to Technorati Favorites pingoat_13.gif