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Score
Above 800
760 to 799
720 to 759
700 to719
680 to 699
660 to 679
620 to 659
500 to 600
Below 500
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Odds of Paying 90+ Days Late
1 out of 1,292
1 out of 597
1 out of 323
1 out of 123
1 out of 55
1 out of 38
1 out of 26
1 out of 8
Live with Mom
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Don’t Be Discouraged
Think your score is too low? The good news is you can improve your credit score and you don’t need to pay money to a “credit fixer” to do it. Helping you improve your credit score is just one of the services we provide at no charge to you. By taking time to improve your credit score, you can qualify for a more favorable interest rate.
Your score is nothing more than a “snapshot” of your credit at a particular point in time. It changes as new information is added to your bank and credit bureau files. Past credit problems impact your score less as time passes. And it doesn’t take long. A few changes can result in a 20-point improvement within a few days. Don’t – I repeat, don’t – cancel credit cards or close accounts in an effort to improve your credit score. It will have the opposite effect. That’s why you need a list of do’s and don’ts from a loan consultant.
I work with mortgage loan consultants who share my desire to help people move from a rented home to one where they can build equity and eventually own. If you think your home ownership is impossible, contact me. We make ‘impossible’ home ownership possible.
Protect Your Score During Escrow
Once you qualify for a home loan, remember that the lender will look at your credit score again, just before escrow closes. What you do in between can mean the difference between moving into your new home, or not moving at all. Here are some tips to avoid disappointment at the last moment.
1) Don’t quit or change jobs.
2) Don’t purchase a car or boat.
3) Don’t make large furniture or appliance purchases.
4) Don’t open or close lines of credit.
5) Don’t run up credit card bills.
6) Don’t become delinquent on rent or mortgage payments.
7) Don’t spend savings or retirement funds.
8) Don’t make large deposits or withdrawals from your accounts.
If you must do any of these eight things during escrow, contact your loan officer. But avoiding these pitfalls is the best way to a successful loan closing.
How to Improve Your Credit Score
1) Pay your bills on time. Even better, make a second payment in mid-month.
2) If you have missed payments, get current and stay that way.
3) Be aware that paying off a collection account will not remove it from your credit report.
4) If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.
5) Keep balances low on credit cards and other revolving credit accounts.
6) Pay off debt rather than moving it around.
7) Don’t close unused credit cards as a short-term strategy to raise your score.
8) Don’t open a number of new credit cards that you don’t need, just to increase your available credit.
9) Don’t open a lot of new accounts too rapidly.
10) Apply for and open new credit accounts only as needed.11) Have credit cards – but manage them responsibly.
12) Note that closing an account doesn’t make it go away.