So what can someone do if they want to raise their credit score?
Nice article today on Yahoo, with some of the hidden details of FICO scoring hits:
FICO Reveals How Common Credit Mistakes Affect Scores
by Jeremy M. Simon
Sunday, November 29, 2009
Borrowers already knew that late payments hurt their credit scores, but for the first time, they now know the extent of that damage.
Did you max out your credit card? Expect a credit score drop of 10 to 45 points. Declare bankruptcy? Your score will plummet by up to 240 points, and your odds of getting credit will nosedive with it.
The "damage points" data, unveiled recently by FICO, are part of the most revealing glimpse into the firm's once-secret -- and still mysterious -- credit scoring model. The new information discloses how many points borrowers' scores will drop when they make the most-common mistakes.
More: http://finance.yahoo.com/banking-bud...-creditreports
So what can someone do if they want to raise their credit score?
1. Make EVERY payment on time.
2. Reduce the amount of debt on an open credit card to no more than 50% of the line of credit they are carrying. A good part of your score is how much debt you are carrying compared to how much is available. If you carry only 20% of your credit limit by all lenders, you will be viewed much more favorably than if you have a card or credit line that is maxed out.
3. Spend less than you make. If you budget and are able to meet all your bills, make more than the minimum credit card payments, and still save money in a savings account, then you are better than most Americans right now, and your credit score will improve.
4. Time. The longer you have a positive credit history, the better your score will become.
5. Carry SOME *( a little) credit card debt- Those who carry a little debt are seen as better able to manage debt than those who pay everything off every month.
6. Own, don't rent your home.
7. Stay in one place, at one job, for a longer period of time, and your score will improve.
Those are just some tips that others have mentioned on how to improve your credit score.
As the article says- one late payment to one company can really knock your score down.
Here is an article titled "7 fast fixes for your credit score":
http://articles.moneycentral.msn.com...re.aspx?page=1
Note: Have you checked your credit report, and score? Many people find major errors with theirs. I have had bad information on mine before- they had data from another person with my same name, but a different city, intermingled with mine. If I hadn't gotten a copy of my free credit report, I never would have known. I disputed the data, got it corrected in a week, and my score improved as a result. Always start with checking to make sure the data is accurate.
Here is the link to check your report for free. The score costs extra, but the data itself is free:
https://www.annualcreditreport.com/cra/index.jsp
"Treat your wife with honor, respect, and understanding as you live together so that you can pray effectively as husband and wife." 1 Peter 3:7
"Treat your wife with honor, respect, and understanding as you live together so that you can pray effectively as husband and wife." 1 Peter 3:7
Mine is too high how do I get it down?
100g
from Yahoo / Bankrate
Good Credit Score Not Good Enough Anymore
by Melissa Ezarik
Tuesday, December 29, 2009
With historically low rates, many homeowners are watching closely for the right time to refinance their mortgages. Those with good credit may well recall being showered with praise by a mortgage broker during the initial purchase for that solid credit score.
That was then. This is now.
A few years ago, a score of 620 or higher was good enough. That increased to 680 in early 2008. Then it jumped to 720 in April last year and 740 in August, says Rodney Anderson, senior managing partner of Plano, Texas-based Rodney Anderson Lending Services.
In the past, any score of 700 or higher would get a double thumbs-up from credit experts. Now, rate adjustments begin kicking in at 740, with every 20-point drop adding another adjustment.
In other words, many people who were taking pride in their credit habits either must pay significantly higher or try to make quick changes to nudge their scores upward. "What used to be great is now only good," says mortgage broker Todd Huettner, president of Denver-based Huettner Capital. Refinancing that would have worked a year ago might well not make sense, he adds.
"I have clients all the time who literally wind up with a score of 739, 719, 699, 679 ... and it costs them money to either fix it or pay for it," Huettner says.
One of Huettner's clients, who always had a score of about 740, went to do a refinance and found her current score at 719. "The reason was, she put a new washer and dryer on a store credit card," he says. Many store cards are actually revolving credit, and your limit may well be equal or about equal to the purchase you're trying to make that day.
More: http://finance.yahoo.com/banking-budgeting/article/108486/good-credit-score-not-good-enough-anymore?mod=bb-creditreports
S&P500 (C Fund) (delayed) (Stockcharts.com Real-time) |
DWCPF (S Fund) (delayed) (Stockcharts.com Real-time) |
EFA (I Fund) (delayed) (Stockcharts.com Real-time) |
BND (F Fund) (delayed) (Stockcharts.com Real-time) |
||
Yahoo Finance Realtime TSP Fund Tracking Index Quotes |
Bookmarks