My New Blog

Take charge!  Your credit score is absolutely in your hands.

What is it?  Your credit score has the potential to impact your life in a big way, especially your financial prospects.  If you think it's something you'll never need to pursue...think again.  You never know when you might change your mind about buying a home.  So, be prepared and get that credit score the highest it can be.  It determines whether or not you will qualify for major financing, low interest rates, and the ability to rent a home.  Since you want a higher score, it's essential to understand just what affects your rating.

The Breakdown.  According to Fair Isaac Corporation, when lenders talk about your credit score, they are really talking about the FICO score devised by Fair Isaac Corporation.  How do they derive a number?  Well, it's a formula based upon 1) types of credit used, 2) new credit, 3) length of credit history, 4) amounts owed, and 5) payment history.

My advice:

- Do not close accounts.  Do not have too many new accounts.  Over pay them or pay the balance each month.

- New accounts are ok.  They help build credit.

- Never miss a payment.  Not even parking tickets.

- If you have high balances, pay them off and begin with the ones with higher interest rates.

- Obtain your yearly FREE credit report.  Dispute any errors yourself and you're likely to get them removed.

Whether you're a home buyer or seller, let Bodin Realty work for you and assist you in all your real estate needs.