Know and Boost Your FICO Score
A critical factor for all mortgage applicants is their FICO score. To know your score — a Fair Isaac Co. calculation from 350 to 850 — go to myFICO.com or any of the main three credit reporting agencies: Equifax (www.equifax.com), Experian (www.experian.com) or TransUnion (www.transunion.com). Scores are computed from your personal credit report maintained independently at each of the bureaus, which charge about $15 to provide your credit report and score. Rather than averaging the three scores, lenders typically select the middle one.
To improve your score, here are six action steps to pursue:
1) Continue paying your bills on time — your payment history
accounts for 35% of your FICO score.
2) Don’t add to your balance or reach your credit card maximum
since 30% of your score is based on your debt-to-credit limit.
3) Don’t apply for new credit, (causing a “credit inquiry” that can
lower your score) or cancel an old card, since length of credit
helps your score.
4) Pay down high-balances; don’t shuffle debts among several lenders.
5) Settle any collections or past due accounts.
6) Dispute and resolve any inaccurate items in your credit report
Time may be your only remedy for mitigating the damage from
bankruptcies, foreclosures and other judgments. The last two
years of your credit history are the most important.
To get the house you want, first get your financial house in order — and that includes knowing and improving your FICO score.
Harry Teaford
305-587-1244
harry@harryteaford.com
Mission Statement:
To provide comprehensive financing solutions to my customers with a high degree of trust, knowledge, respect and convenience.
