Mortgage Services THESE ARE NOT IN ANY ORDER - Each offers different products. What you need may be available from one or all. We do not get any type of compensation for reccomending these companies this is just for your information. Name:Joshua Ulmer Company: Ideal Lending Solutions Phone 561-296-7518 Email firstname.lastname@example.org Website http://www.joshuaulmer.com/ CLICK HERE FOR ONLINE PRE-APPROVAL GREAT WITH VA & REVERSIBLE LOANS AS WELL AS FHA & CONVENTIONAL HAS MCC
Twelve Ways to Increase Your Credit Score A few easy steps can improve your standing among the credit bureaus
Tip #1: How to pay collections Ethically one should always pay outstanding debts. However, you should be aware that paying old, delinquent debts to a creditor affects your credit score. It is a bit complicated. Historically there had been a bug in the FICO system, which actually lowered your score for paying offan old debt, when it had gone to collections. The reasoning was that the debt, which was old (and therefore didn’t weigh heavily) was now new and current. This caused your score to go down. Today, you are not penalized for doing the right thing. However there are still some things to keep in mind. Usually a creditor will sell off delinquent accounts after about six months to a collection agency. They will then work to negotiate a deal with you, since they purchased your debt for pennies on the dollar. It is important to know what to negotiate with them. If you settle for an amount less than you owe, it will be reflected on your report (marked as “settled”) and your score will go down. If your old debt is marked “paid in full”, your score will not go down. Some people negotiate to have their report marked “paid in full” even if they paid a lot less. This is frowned upon by the credit bureaus, as it is a lie and doesn’t reflect what really happened. However, even if your report is marked “paid in full” by the collection agency, your score might not go up. It all depends on what the original creditor shows the balance to be. They will sometimes mark it to $0 when they sell the debt, which would mean there is no way to improve your score. Tip #2: Use older credit cards The longer you have had a line of credit open, the better your score will be. Use the older cards (making sure to keep the balances low), keeping them active. Tip #3: Do not open a lot of new accounts at the same time. Do not open a lot of new accounts at the same time. If you do your “average account age” will go down which will lower your credit score. In addition, creditors will become nervous that you are suddenly adding credit lines. Build slowly. Tip #4: Do not consolidate credit cards Typically if you consolidate your credit cards, you need to apply for a new credit card. This will affect your score all on its own. Then if you transfer all your balances over to the new card, you will max out the new credit line, which will really lower your score. It is better to have a few cards with lowbalances, than one card with a high balance. Tip #5: Rate shop within a limited time frame If you are shopping for a car and plan to visit a few dealers, make sure to only have your credit pulled in a few of the locations and make sure it is within a short time span (a week or two). Your score will only go down a few points (as if you only pulled it once). Rate shopping is seen as a good practice by lenders, so they don’t penalize you. Tip #6: If possible, get different kinds of credit Your credit score will go up if you can show that you can use different kinds of credit wisely. Installment debt, revolving debt, etc. should ideally all be in your report. Tip #7: Do not close out credit cards Even if you are no longer using a credit card, keep the account open, especially if it is an older account. Its age will help you. Also you shouldn’t close accounts which are still active, because the limit will go to $0, but you will show a balance, which will increase your debt to credit ratio. In addition your overall available credit will go down, causing your overall “credit utilization” to go up (the ratio of your overall debt to your overall credit limits combined). Tip #8: Make more than one payment per month Credit repositories gauge how well you monitor your credit and multiple payments per month indicate you are a careful consumer interested in protecting and maintaining your credit. Tip #9: Ask your loan officer about authorized user accounts Your stable network of family and friends contribute to you being a good credit risk. Becoming an authorized user of a low balance, always paid as agreed credit account improves your good accounts to bad accounts ratio and good credit longevity. Tip #10: Monitor your credit report for errors What you measure will improve! For a free copy of your credit report, visit: https://www.annualcreditreport.com/cra/index.jsp Tip #11: Monitor your credit for free What you measure DOES improve! Sign up at www.CreditKarma.com Tip#12: Go to www.optoutprescreen.com to remove yourself from prescreened credit offers (junk mail); this may increase your score 5-10 points and you can always opt back in.
IMPORTANT- Once you pull your credit score and are in the loan approval process DO NOT do anything to affect your credit. Do NOT Open any type of credit account or use large amounts of any credit you have. Do NOT go purchase a car, go to a furniture store and purchase furniture even on a no interest account, don't go to the doctor or auto shop and use your CARE CREDIT. In other words WAIT UNTIL AFTER YOUR HOME CLOSES! The mortgage companies will pull your credit just before funding if they see a change they can pull your funding and ruin your purchase of the home. You can go shopping after the keys are in your hands. You can pre-shop and know what you will be purchasing. Just don't buy anything yet. The fun can start after!