The Producers of JRAC Realty
Many other companies in our industry thrive on automation and electronic client correspondence. We believe credit to be unique to each and every client. Thus, our in-house specialists are here in person to answer your questions, and direct you to the appropriate experts we are affiliated with who will conduct a full, free assessment when you speak. For now, here are some basic tips & tactics.
1. Make payments on time, especially to installment and revolving accounts, as these report to the bureaus monthly.
2. Do not apply for new credit cards or loans if your credit score is low, ESPECIALLY if you have already begun the pre-approval process for your new home loan
3. Pay credit card balances down to 30% of your limit or less. (Start by paying down small cards rather than large ones, if applicable. For example, if you have a card with a $200 limit carrying a $150 balance, and a $7,000 card with a $4,000 balance; your scores will increase faster by paying down the small card first.
4. Make sure your credit card reports a limit. If you have a credit card that does not report a 'credit limit,' it is possible that your balance will appear every month as a 'maxed out' account and negatively affect your scores.
1. Available credit (30% of your score): Your credit limit minus the amount you owe for each account.
2. Number of inquiries (10% of your score): Records of inquiries logged when you apply for credit.
3. Type of credit (10% of your score): Mortgages, installment loans, revolving accounts, etc.
4. Payment history (35% of your score): The record of your on-time and late payments.
5. Length of history (15% of your score): The time elapsed since each account was opened.
1. Paying off collections will help your credit score.Once your pay a collection, charge-off, or tax lien it no longer impacts your credit score.
2. Using your credit cards often will increase your payment history and raise your credit score.
3. Multiple inquiries pulled at once in the same industry will not have a negative effect on your credit score.If your credit scores are not currently in the low 600’s or better, you should be enrolled in a credit repair program.
Most lenders won’t finance a buyer for any home without at least a 640 middle score (FICO).If your credit needs improvement, we can start you on the right track today!
Call us now at 813-515-7865 to get started.
1. Pay down your credit cards
2. Paying off your installment loans (mortgage, auto, student, etc.) can help your scores, but typically not as dramatically as paying down — or paying off — revolving accounts such as credit cards. Lenders like to see a big gap between the amount of credit you’re using and your available credit limits.
3. Getting your balances below 30% of the credit limit on each card can really help. While most debt gurus recommend paying off the highest-rate card first, a better strategy here is to pay down the cards that are closest to their limits.
4. Get secured credit cards If you are new to the world of credit or want to start rebuilding a good credit history, a secured card is the perfect choice. A secured card looks and functions just like a standard credit card and help to to start, rebuild, or re-establish your credit profile if you make consistent on-time payments and keep your account balances below their credit limits.Ask a Producers associate for our preferred secured card affiliates.
5. Use your cards lightly. Racking up big balances can hurt your scores, regardless of whether you pay your bills in full each month. What’s typically reported to the credit bureaus, and thus calculated into your scores, are the balances reported on your last statements. (That doesn’t mean paying off your balances each month isn’t financially smart — it is — just that the credit scores don’t care.) If you’re having trouble keeping track, consider using a check register to track your spending, logging into your account frequently at the issuer’s Web site, or using personal finance software, which can load your transactions and balances automatically.
6. Check your limits. Your scores might be artificially depressed if your lender is showing a lower limit than you’ve actually got. Most credit card issuers will quickly update this information if you ask. If your issuer makes it a policy not to report consumers’ limits, however - as is the usual case with some cards - the bureaus typically use your highest balance as a proxy for your credit limit. Some credit card companies are notorious for not reporting your credit limit correctly. If we have pulled your credit, ask us to double check your report.
7. Pay your bills on time. The easiest way to keep your credit score increasing is to pay your bills on time. NEVER pay your bills more then 30 days late. If you are going to be late, you should contact the company and see if they can give you extra time. If for some reason, you do pay a bill late you should contact the company and ask them to waive your late fee and not report you as being late to the credit bureaus. Sometimes if you have a history of always paying this specific bill on time the lender will cut you a break and not report lateness to the credit agencies.
8. Debt consolidation is an effective way to conquer debt because it focuses on the heart of debt issues-high interest rates. Combining your debts into one payment typically results in more reasonable interest rates, which in turn can lead to improved monthly payments. With less outrageous monthly payments, you are able to pay down your debt quickly without having to throw away your money on excessive interest charges. Not to mention the fact that you will have greatly simplified your payments; you’ll have only one creditor and one payment to worry about instead of many. The bottom line is that a consolidation service can help you get out of debt faster and save money doing so. If you’ve struggled with high-interest debt for years, there is an easier way out. You don’t have to devote your entire income to debt payments or declare bankruptcy to free yourself from high-interest debt. Consolidating your debts is a practical and proven solution to overcoming debt. However, some lenders are hesitant to lend to borrowers who have recently come out of debt consolidation.
9. Bankruptcy: In some cases, bankruptcy is no more harmful to your credit record than the financial circumstances that lead to the bankruptcy filing. Most debtors in bankruptcy proceedings, even those who have never missed a payment, couldn’t get new credit from a lender who truly looked at their financial condition. So the fact that there are no negatives on their credit report is only marginally meaningful when looking at the whole picture. Bankruptcy at least makes all the debt shown in the negative history unenforceable. Objectively, you are a far better credit risk after bankruptcy than before. Remember that a bankruptcy is not going to erase the record of your debts listed in your bankruptcy. Credit reporting agencies are within their rights in showing accurate history about your financial affairs. You want to make sure that the bankruptcy discharge also shows on the credit report so that creditors understand that those old creditors have no legal claim remaining. You should consult with a Bankruptcy Attorney if you are considering this option.