Posts Tagged ‘Debt’

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

 

 

 

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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

 

 

 

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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