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发帖数: 1107 | 1 1. You have never missed a payment.
You have done a great job at making all of your payments on time. The
purpose of a credit score is to help lenders predict whether or not you will
miss payments in the future, so keeping your record clean is a very
positive factor.
2. You do not have any maxed-out credit cards.
Credit cards are considered "maxed-out" when you have spent 90% or more of
the credit limit. Lenders view you as someone who uses their credit
responsibly and spends only what they can afford.
3. Your Credit Used % is less than 16%.
You have spent very little of the credit that has been extended to you.
Lenders see this as a sign of responsible credit behavior and are likely to
extend you additional credit as a result.
4. Your average credit card limit is more than $5,000.
Lenders recognize that with higher credit limits comes increased
responsibility, and that you have managed to build strong relationships with
other lenders. Your relatively high credit limits signal to lenders that
you are a trustworthy candidate for new lines of credit.
5. You have no installment loans.
Installment loans usually carry large fixed monthly payments. Keeping your
credit report clear of these major monthly expenses tells lenders that you
have more money available to take on the additional debt of a new account.
6. You have two or more open credit cards.
Credit Cards allow you to both spend money and decrease debt; unlike
mortgages or installment loans where you only decrease debt. Lenders like to
see multiple credit cards on your credit report, because they are able to
use them to better determine your ability to manage your spending.
7. Your mortgage is in good standing.
Lenders recognize that obtaining and maintaining a mortgage requires more
skill and discipline than other account types. This makes them more
confident in your ability to take on new accounts and still meet your
financial obligations.
8. You do not have any Public Records.
You do not have any Public Records (i.e. bankruptcies, tax liens, and court
judgments) on your credit report. Lenders see these issues as major barriers
to extending additional credit. | q******o
发帖数: 1107 | 2 How to Have a Winning Credit Score
It's that time of year again - when the discipline of maintaining our New
Year's Resolutions begins to fade. But your credit score doesn't have to.
Check out these helpful tips on how to turn your credit score into a winner.
CreditReport.com™ Members
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Create a Winning Streak
If you have sparse credit history, one of the best ways to establish a
history and bring up your credit score is to pay your bills on time for many
consecutive months, says Wayne Sanford, a credit expert with New Start
Financial Corporation in Dallas. "After three payments in a row, you start
to establish a payment history," Sanford says.
It's best to have one or two credit card payments in that mix of bills, to
show that you can handle debt responsibly. However, charging large sums on
the cards isn´t necessary. In fact, you'll probably want to keep the
amounts small enough to pay off every month, in order to avoid costly
finance charges.
"Say one person charges up their credit card buying furniture for their
house, while another just charges $50 a month for gas," Sanford says. "The $
50 a month is going to score more favorably on [the credit bureaus'] scoring
models, because they're not abusing the card."
Consider Your Long-Term Financial Plan
Retail stores commonly offer customers 10 or 20 percent off their purchases
in exchange for applying for a line of store credit. But these accounts can
lower your credit score by affecting your "card utilization" - the credit
limit on a particular card versus how much is owed on that card. Store
credit is usually extended in small amounts - say, $250 - so a purchase of $
100 uses almost half of that card's limit, which can negatively affect your
credit score.
"Credit bureaus used to look at overall debt utilization, but now they look
at the individual cards," says Scott Kuhn, a mortgage banker in Philadelphia
who works to improve credit scores for potential clients. "You can have 10
credit cards, nine with no balance, and one with a $100 limit and a $100
balance - just that one card can bring down your score."
To avoid this pitfall, resist the short-term temptation to save a little at
the register with a store credit card. Pay cash or use one of your current
credit cards. Your long-range strategy will prevail in the end.
Pay Close Attention to Medical Bills
Collection attempts for medical bills can lower your credit score, even if
the bills are paid, Kuhn says. Many medical offices will turn accounts over
to collection agencies if balances aren't paid - sometimes when they're as
little as one month overdue. The agencies then place negative marks on the
customers' credit reports, and don't always remove them when the debt is
settled.
The solution? Pull your credit report and look for negative entries. If you
spot one for a medical bill that's been paid, contact your doctor's office
and ask them to send a letter to the credit bureau on company letterhead
confirming the payment. "That alone can add as many as 100 points to a
person's credit score," Kuhn says.
Don't Dwell on the Past
If you've made mistakes in the past with credit, a good way to bring up your
score is to seek out secured credit cards and loans, which are guaranteed
with money up front. A secured credit card, for example, may require a
deposit of $500 to give you a $500 line of credit. Interest charges may
apply to any balance you carry, but the score improvement it provides is
often worth the cost.
"You have to do the math and say, 'Is an investment of $100 or so worth me
having good credit?'" Sanford says.
Before you open one of these "safe" credit accounts, however, make sure that
the lender will report your on-time payments to the three major credit
bureaus, and don't close the accounts too quickly.
How you pay your bills today counts more than how you paid them five years
ago. Accounts that are currently open and being paid on will score more
heavily than ones that are closed.
Finally, know that your credit scores follow you throughout your life.
Making winning credit decisions today could help make your financial goals
easier to reach in the future. |
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