Credit Scores:

By
Real Estate Mortgage Broker with PRESIDENTIAL BANK, FSB (421593)

Credit Scores: How They Work
Credit scores became common in the 1980s, and today are widely accepted by lenders as a reliable way to evaluate a potential borrower's willingness and ability to repay a loan. Credit scoring condenses a borrower's credit status into a single number which changes as the elements in a credit report change. The score reflects the risk level of lending with a higher number indicating lower risk.

The most widely used score is the FICO score, generated by the Fair, Issac Company. Scores are computed based on data provided by the three major credit bureaus, Experian, Trans Union and Equifax. Scores cannot use demographics such as race, color, religion, national origin, gender, age, marital status, or receipt of public assistance under the Consumer Credit Protection Act.

Factors in a Credit Score:
- The length of time credit has been established
- The length of time at current address
- Used credit vs. available credit
- Employment history
- Late payments, bankruptcies, judgments, charge-offs, and collections

 

www.timothyRbarnes.com

Improving Your Credit Score

Bills. Pay your bills on time. Apart from circumstances like foreclosure, bankruptcy or tax liens, nothing has a greater negative impact on credit scores than late payments. A payment received even one day late is technically considered 30 days late. Pay your bills promptly to avoid late fees and hits against your report.

Debt. Make it a priority to pay down existing debt as quickly as possible within your budget limitations.

Credit cards. Limit the number of credit card accounts you maintain-fewer is generally better. Keeping a few charge accounts active and paying the balance in full by the due date is the optimum scenario and will raise your score. If you must carry a balance, keep overall balances low and use credit cards only for emergencies or purchases that have long-term value. "Maxing out" your credit cards negatively impacts your credit score.

Don't apply for credit you don't need. Applications show up as inquiries on your credit report, indicating lenders that you may be taking on new debt. Numerous inquiries on a credit report can lower your score. Use the credit you already have to prove your ability to manage credit responsibly.

Useful links for Realtor:

 

http://www.vhda.com/sf/gis/

 

http://www.vhda.com/sf/gis/targeted_limits.asp

 

http://www.timothyrbarnes.com/ 

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the music-note to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Comments 1 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
82,182
Christopher Smith
TREGO REALTY
Always good information on credit and how to raise your Beacon score.
August 14, 2006 09:32 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the scissors to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
4,108

Timothy Barnes

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tshirt to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: