{"id":734,"date":"2015-05-16T13:25:25","date_gmt":"2015-05-16T13:25:25","guid":{"rendered":"http:\/\/teammovemortgage.com\/2015\/02\/07\/this-is-the-least-known-fact-about-credit-scoring-that-can-make-or-break-your-mortgage-loan\/"},"modified":"2020-07-13T22:35:05","modified_gmt":"2020-07-13T22:35:05","slug":"credit-score-tips","status":"publish","type":"post","link":"https:\/\/teammovemortgage.com\/blog\/credit-score-tips\/","title":{"rendered":"You may not know it, but you are a number and it could help or hurt you a lot!"},"content":{"rendered":"

So many Americans believe paying bills on time is all that is needed for an excellent credit score.\u00a0 Although that is an important factor, there is another factor that is just about as important.\u00a0 As the title says, you are a number so you may as well have a good one!\u00a0 Right?\u00a0 That is why we share this and other valuable credit score tips every day.<\/p>\n

Important Factor Representing 30% of Your Credit Score<\/h2>\n

30% of a person’s credit score is based on balances\u00a0reported for\u00a0revolving accounts.\u00a0\u00a0Revolving accounts include credit cards or lines of credit.\u00a0\u00a0This major portion of a credit score\u00a0compares the account balance to the credit limits as a percentage.\u00a0\u00a0For instance,\u00a0let’s say\u00a0someone has a credit limit of $300 and\u00a0a $290 balance.\u00a0 This\u00a0can really kill a credit score!\u00a0 The $290 is a very small balance.\u00a0 But when compared to a credit limit of only $300, it is about 97% of that limit.\u00a0\u00a0Then how do you fix this to get maximum credit score points?\u00a0 Just follow these simple steps.<\/p>\n

    \n
  1. Pay off the card<\/li>\n
  2. Charge something under 10% of the credit limit<\/li>\n
  3. Pay off the balance in full when the bill is received<\/li>\n
  4. Repeat\u00a0each month.<\/li>\n<\/ol>\n

    Also keep in mind also that usually the statement balance on the credit card is what will be reported on credit.<\/p>\n

    If you were a fly on a wall in\u00a0our office, you would hear\u00a0us say several times a day, this little known fact that accounts for 30% of a borrower’s credit scores!<\/p><\/blockquote>\n

    Credit Score Tips – Do Not Make This Mistake!<\/h2>\n
    \"credit
    Little known fact to increase your credit scores fast<\/figcaption><\/figure>\n

    People often think that if the limit on a credit card\u00a0is $300, they should charge $300, and then pay off the balance to get the best scores.\u00a0\u00a0Conversely,\u00a0credit bureaus\u00a0consider this owing 100% of the limit.\u00a0 Then this\u00a0would hurt a score tremendously.\u00a0 Also keep in mind that it can take 30 – 45 days for the new balance to update on a credit report.\u00a0\u00a0So another reason\u00a0to keep the balance under\u00a010% of the limit.\u00a0 Therefore you never have to worry about a drop in\u00a0the scores.<\/p>\n

    Scared of Owning a Credit Card<\/h4>\n

    Many are apprehensive about getting a credit card.\u00a0 Foremost, borrowers that had a bad experience in the past are scared to use them again.\u00a0 Additionally, some hear horror stories about credit cards will cause problems such as overuse.\u00a0 We\u00a0can certainly understand that, but no credit cards can really hurt those all important credit scores.\u00a0 No revolving accounts mean the scores can only go so high because it is missing the 30% factor.<\/p>\n

    So one of the best credit score tips is to just\u00a0open 1 – 2\u00a0cards.\u00a0 Next charge\u00a0$20 – $30 once per month and\u00a0pay off the balance in full each month.\u00a0\u00a0This simple tip will\u00a0provide a pretty good jump in credit scores in as little as\u00a01 – 3 months.\u00a0 So as long as there is discipline to only charge the small amount each month and to pay off the balance every month on-time (pay on time no matter how small the balance is!), a credit score can increase a good amount.\u00a0\u00a0A 640 score could get a USDA<\/span><\/a> approval or Down Payment Assistance<\/span><\/a>, where a 639 would not.\u00a0 Or it can\u00a0make\u00a0an important difference by improving an interest rate.<\/p>\n

    This can be the difference in an approval or denial!<\/strong><\/p><\/blockquote>\n

    Best Credit Score Tips for Quick Increase in Scores<\/strong><\/h2>\n