Posts Tagged ‘Interest rates’

Credit and Your Payment History

August 8, 2016

How to Build Your Credit Scores

Credit increase credit debt team jeffeson

Did you know..

The only way to build your good credit is by utilizing credit accounts to establish a payment history and show responsibility by maintaining very low or zero balances.  A payment history, however, will take time to build your scores since it is based on the history of your payments being made on time. Simple as that! Your credit payment history makes up 35% of a Fico Score. So if you’re trying to make a comeback from derogatory credit or build new credit remember to be responsible with your payments and set reminders or auto payments to ensure you are not late with even one account that reports to the credit bureaus.

Build Your Credit

Learn ways to be responsible with your credit and your finances.

Paying by cash is a good practice to help save money because generally it is harder to hand over cash however,  paying cash for everything or paying with a debit card does not impact your credit score as all since it does not establish a payment history.

In most all of our lives we will need to purchase something on credit. It is best to work hard to maintain the best credit rating possible so you will be prepared and will receive better interest rates due to your excellent credit rating which will also save you money in the long run.

 

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Is it okay to miss a credit card payment?

Ways to correct credit before you buy a home.

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Increase Your Credit Score

August 2, 2016

Credit card debt makes up 30% of your Fico Score.

Credit Score Credit Card Debt Team Jefferson

How Credit Score is Calculated

 

One of the best ways to increase your credit score is to start paying off your credit card debt? The “amounts owed” makes up 30% of your Fico score. To begin making a dent on the credit card balances start by making bigger payments on the card with the highest annual percentage rate. If possible double up on your monthly payment. Once that card is paid off you can then begin to pay on the second highest annual percentage rate card. Add the monthly payment money from the first card (now that it is paid off) and put it towards making an even larger payment on the second card.  You will then gain momentum as you work towards paying off your credit card debt, and save a TON of money in interest rates. Resist the urge to charge on the credit cards again unnecessarily and don’t close them and you will see an increase in your credit score.

 

Is it okay to miss a credit card payment?

June 22, 2016

What happens when you miss a credit card payment? Yes it will hurt your credit but just how much?

Source: Is it okay to miss a credit card payment?

Interest Rates are going up, how can you improve your credit quickly so you don’t miss out on that dream home?

July 13, 2013

Team Jefferson Home Loans - The Colony - TX - 75056 - 866-403-1426 - Home Loans - Mortgage - Buying a home - VA home loan - FHA home loan - Refinance - Credit - interest rates  (1) 4th

Home loan rates are going back up! Are you going to miss that dream home by waiting too long?

Mortgage rates have been setting records for the past couple of years now have allowed millions of homeowners to refinance or purchase their home.  However interest rates are on the rise again and with higher rates that means the home you can afford, in the near future, may have to buy something smaller price tag. Lower interest rates help you afford more home as interest rates will impact the monthly mortgage payment and your debt to income ratio.

So if you’re on the fence regarding refinancing or purchasing a home keep in mind the sooner you make your move the more home you will be able to get for your money. If credit scores are holding you back here are some quick ways to boost your credit scores.

Pay down your credit card balance. People with higher credit scores tend to maintain their balance to limit ratios to 20% however even 50% can make a huge impact on your scores.

Don’t be late on any accounts that report to the credit bureaus. This will not only drop your scores but can hurt your chances of obtaining a loan if you have too many recent late payments on accounts. I do not suggest making a habit of it but it would be better to negotiate with a bill that doesn’t report to the credit bureau for a late payment arrangement and make sure items that are report to the credit bureau are paid on time each month which may help you avoid a late payment on the credit report. Not a good habit but rather a way to maintain your score while you get back on your feet again with less impact overall.

Team Jefferson Home Loans - The Colony - TX - 75056 - 866-403-1426 - Home Loans - Mortgage - Buying a home - VA home loan - FHA home loan - Refinance - CreditDon’t close your old accounts. It is a common myth that paying off an old credit card and closing it out will help your score but this is not true. It can actually drop your score slightly. It is best to pay down the balances within the 20% of limit and can show you can use the credit wisely it will actually improve your scores. It also looks better on the loan application to show you have been wise with your credit by having more credit extended to you than you are using and the constant revolving credit will continue to boost your scores upward.

If you are trying to buy a home in the very near future do not, “dispute” items on your credit report as Fannie Mae now requires disputed wording to be removed. This will require time on your part to have the three credit bureaus remove this wording and usually you will need to send a letter to the creditor and to all three bureaus which can cause more delays in the loan process. Also once the dispute wording is removed you may see a drop in your scores as well. It is better to leave old debt alone unless it is truly inaccurate.

Limit the inquiries on your credit report. Inquires stay on your credit for as long as two years but has the most impact on the credit score for the first six months following the credit inquiry.

If your credit is already over 620 and you have over 2 established (12 months) trade lines and have been considering refinancing or purchasing a home it may be worth the time to take a serious look at your situation now before rates jump even higher. You do have to prove a two-year job history as well. Rent is going up all around tt will save you money each month by cashing on the still really good rates, not to mention the amount of money you will save over the life of the loan and the wise investment in yourself. What is holding you back?

By Donna Jefferson

 


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