What creates a credit score?

Credit scores are important to folks considering buying almost anything today. They also impact your employment-more and more Employers are checking your credit to see if you are $ savvy prior to a hiring decision. Fixing errors can make a difference. Check out the "how to" video and find the forms you need right here.

Credit scores can range from 350-850 and are composed of:

• 35% is your payment history
• 30% is based upon how much debt you have
• 15% is based upon the length of your credit history
• 10% is the type of debt (revolving, installment, mortgage)
• 10% is based upon whether or not you have a lot of new accounts

***Our favorite lenders are reporting that a 680 credit score is a doable loan right now. Make that a good target if you are below that number.

Improving your score can be helped by:

1. Paying your bills on time
2. Do not max out your credit cards or revolving debt plans
3. Do NOT open many new accounts or apply for many in a short period of time(the exception is for mortgages-you may speak to several different lenders in a 2 week period and it only counts as one inquiry.)
4. Do not Close accounts especially if open for a long time even if they have a zero balance
5. Check your report annually for FREE

How to start a credit score:

• Start by applying for a credit card. Try the bank or the department store first
• Lenders and REALTORS are in a position to help consumers see what needs to be done to improve their credit ratings. In some instances it may be better to wait and work on improving their credit rating then being able to qualify for a better loan rate.

NOTE: Copyright 2009 Texas Association of REALTORS. Page 23 in TAR housing initiatives program. (Affordable housing certification.)

***Personal note-FICO can not be had "for Free" When you speak with a lender or pay an online company you can learn your FICO score. FICO is another formula kind of scoring plan.

Send me an e-mail to http://mailto:helpRhome@yahoo.com for a FREE website to learn about your creditworthiness and make some plans for the future. When the interest rates and the number of properties are at the present levels it is truly a BUYERS market and right now the whole country is FOR SALE!

***Comments attributed to my personal opinion or information.