So, you just paid off the credit card, now what?

March 1, 2018

If you pay off a credit card and want to close the account, will it help your credit?

So, you just paid off the credit card that you have had for a long while, do you close it or keep it open? First let me say, Congrats, way to go towards becoming debt free! Nice job! Congratulations via KatieAshley wikispaces

Now what? If your goal is to keep your credit scores on the rise and isn’t this most everyone’s goal? Especially if you have a large purchase such as a new home or car in your future think twice before you close the account and here is why:

The age of your accounts is one of the factors that is used in many credit scoring models with the three credit bureaus. Length of credit history is 15% percent of your credit score however payment history is 35% of your credit score. Credit score model en wikipedia org

When an account that has been for open a lengthy amount of time and in good standing but is now closed you will lose that ability to show you responsibility in paying the account on time for a long time as well as your payment history on the account.  This account will no longer be used in scoring your credit score and you may see a drop in your credit score for this reason. If you pay off the card and simply leave the account open, you will continue to receive the positive points on that particular credit card. An “aged” account is very beneficial in helping you increase AND maintaining your higher credit score.
Again, congrats on one step closer to being debt free as you pay off your credit cards. Do whatever it takes to not charge it up again. Remembering that credit utilization is 30% of your credit score. Keep your balances low (below 30% of your limit is best) and pay all accounts that appear on your credit report on time or early!

Build Your Credit

Keep pushing forward, YOU got this!

Images via Creative Commons Images, Katie Ashly Wikispaces and en Wikipedia





Spend No Money Days!

September 13, 2017

I am physically, mentally and emotionally ready to enter a new phase in my life. I’m ready to grow and get better. quote.

Money and debt can trigger huge emotional responses and even create depression. Make the decision today to make a change and enter a new phase in life. Easy way to begin is to enjoy “Spend No Money” days, challenge yourself and see the difference it can make on your budget, bank account and emotional wellbeing.  You have to start somewhere and YOU GOT THIS!I-am-physically-mentally

Photo Credit

Who gets the CREDIT?

August 28, 2017
Credit and money

Who taught you all about credit?

As a former Mortgage Broker, it became clearer each day that many people have simply never been taught how to manage their credit or what it takes to increase credit scores.

During our years in the Mortgage Business my husband and I heard so many stories from potential clients on how their credit went down hill. Sometimes bad things happen to good people such as loss of job, illness, divorce or death and the credit downward spiral was unavoidable. Most of the time we heard, “No one ever taught me.”

 Good Credit bad Credit signWhere do you go from here?

The Road to Recovery.

We have a passion to help and educate our clients and followers on how to improve and maintain excellent credit. My husband and I worked together as a team within the mortgage industry for over ten years. We loved helping our clients with the process of buying a home. We took the extra steps to show clients that were denied due to credit issues ways they could increase their scores and the requirements needed to obtain a home loan as well as helping them throughout the loan process.

It is our goal to give tips on credit, educate and help strengthen your credit and spending habits. Our post will also help prepare your credit for the home loan process along with a few fun light-hearted quotes and extras along the way. Visit our Facebook page and give us a, “Like” on our page and share with a friend or two!

Our page isn’t just for the future home buyers but rather a place to learn how to manage and understand your credit so it will be there when you need it. Having a higher credit score will save you lots of money on interest rates but the goal is also to make wise money decisions. So, stick around, check us out and let us know if you have any questions. We are here to help!


approved stamp

Photo House of Brokers Realty




Mortgage Pre-Qualification VS Mortgage Pre-Approval

August 28, 2017

Do you know the difference?

Ready to purchase your home?

Know the difference between Mortgage Pre-Qualification and Mortgage Pre-Approval? Home Loan Application form

A Mortgage Pre-Qualification is a very brief look without the research on your actual documentation. The first glance, you might say.

A Mortgage Pre-Approval is what you should actually have before you start looking. It is issued only after a lender reviews pay stubs, tax returns, credit reports, and other important financial information about a potential borrower. You should also see what other Documents may be required to secure the loan at this time as well.

Realtor with For Sale SignMost Realtors want you to have an actual Pre-Approval before they will show you homes.

Once you have the Pre-Approval you will know how much home you can comfortably afford. Your Pre-Approval will let Seller’s know you are serious because you already have a Mortgage Loan secured.

Having a Mortgage Pre-approval can save both you and your Realtor time and emotional stress by already knowing how much you can afford and by knowing you already have your Mortgage Pre-Approval gives you confidence to move quickly once your perfect home is found.


Trended Credit – What does it mean for you?

August 22, 2017

Trended Credit started in June 2016.

What does this mean for Consumers? Road to Good Credit

The Trended Credit Report gives lenders more of a historical view of payment history for the past 30 months.

This will show a bigger, more complete picture of a consumer’s credit behavior or an extended period of time.

It will give lenders the ability to see how consumers manage their credit over a longer period of time. The added focus will be what your balance for a particular trade line averages compared to your monthly payment and how much you actually paid each month.

If you pay your balances off each month your credit will show you are more creditworthy.

If you charge large amounts but pay the balance off each month a lender will consider you more credit worthy than the person that maintains a high balance and only makes the minimum payment each month.

Good News for Consumers

Stuff happens and Lenders understand life throws curve balls. The Trended Credit Report may help a Lender visually see how you normally handle credit but something happened and you made adjustments and are now back on track. This is good especially for home loans where underwriters tend to allow for a letter of explanation.

Of course for some Lender’s they may not consider hearing an explanation to determine their desire to extend credit. The Good news is though your payment history on the Trended Credit Report can reflect you have overcome an issue and are now back on course.

What can you do to ensure your Credit Scores continue to increase? Do you know your score

Best practice to increase your credit score is to use your credit account but always pay over the minimum payment required even if only by a few dollars while focusing on paying it down and keep the balance less than 30% of the total credit limit. This will show you know how to use the credit extended without over extended yourself.

Close out accounts you no longer need.

In the past we suggested that you keep old accounts open however with the new Trended Credit it is advised to close the credit accounts that you no longer leave with the exception of keeping the oldest accounts open so you can show longer payment history. Your Credit score is approved

How can we help you achieve your goals?

Leave a comment and let me know if you have any questions! Be responsible with the credit extended. It will pay off in the end!

Fun and (Mostly) Free Summer Date Ideas

June 26, 2017

Source: Fun and (Mostly) Free Summer Date Ideas

Written by Casually Christina on A Lifestyle Blog

It is always a good idea to save your hard earned money in any area possible however, that doesn’t mean you can never have fun! Get creative and check out these ideas from A Lifestyle Blog and have some fun in the sun without spending too much. Happy Memories!




Credit Card Limits

June 22, 2017

Credit increase credit debt team jeffeson

Creditors want to extend credit to those that show a history of credit utilization and proper use of credit cards is a very important factor in determining so.  What is likely to happen when you go over your limit? Will there be fees? Could your credit card company decrease your spending ability because you went over the limit? Get a better understanding of the importance of utilizing your credit cards.



What Does Your Credit Report Say About You?

October 6, 2016

Check your credit report for inaccuracies at least once a year!


When is the last time you checked your credit?

You should check your credit report at least once a year for inaccuracies. You are allowed to request one credit report free per year and also under special circumstance such and unemployed and looking for work.

Did you know most employers now check your credit during the background check? Don’t be caught off guard!

The Free Credit report will not show your scores but will allow you to make sure your credit report is accurate.

Request your free credit report here.



What is Credit Utilization?

October 4, 2016

Remember the lower your balances are on your credit cards in comparison to the limit on each the better your Credit to Debt utilization is and will give you a boost in your credit score.

Source: What is Credit Utilization?

A Paid Collection is still a Collection.

August 10, 2016

Credit increase credit debt team jeffeson

Did you know….

Just because you pay off a collection it does not erase the derogatory marks on your credit report.

A collection is an account that has been severely past due and the creditor gave up on receiving payment and turned the debt over to a Collection Agency to try to collect the money owed usually adding additional fees to the balance.

Many people believe once a collection is paid that it will be removed from your credit report. Some collection agencies will even go as far as tell you that they will remove the collection from your credit but usually, (unfortunately) this is a ploy to get your payment.

Read more here.

By Donna Jefferson

Credit and Mortgage Loan Specialist



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