How Credit Scores Really Work - Real Estate Tips

​ in my opinion are one of the most obscure and Misato concepts to tell me something they swore would help when in fact it was the complete opposite one of the many examples I have is what I had a guy tell me that he never fully paid off as credit cards because paying interest help him get a better credit score I'm going to explain what determines your credit score the best way to get and keep a high score and some of the common myths about your FICO first term as your credit score there are five main factors coming in at about a foot or 35% of your credit score is your payment history or even worse having them going to collections is the easiest way to score of the good thing is that if you've always been on time and for some reason you forget to pay bills one month initially yes it'll drop a bit but after awhile just fades away in your FICO score against its original strength the second largest factor is at 30% which is the amount of money you owe if you have five ten or even more
credit cards and they're all maxed out credit risk because you can't see when we pay your bills off 15% ideally you went seven years or more just consider perfect for your credit is new credit request and type of cut and mix and use credit is offering in reference to be at for a cell phone or a car loan or any other type of cut if you consistently running your credit it's probably doing you some harm comes until what type of account should I open the ideal situation is some mystery mix of a home loan in a car loan and two or three credit cards but it mean you should go out and get a car loan when it doesn't make sense financially it's only a small factor and so long as you have some credit and use you'll be just fine when it comes to getting a keeping a higher FICO score follow first and foremost to make absolutely sure that you pay all your bills on time as a reminder I set an alarm iPhone which is syncing my email every first of the month my iPhone and Outlook both remind me to pay my bills secondly is the length of your credit I do he wants 7 or more years of credit history finally you want at least 2  but no more than 4 cars with really high limit the best way to get high score is to avoid any court judgements are past due bills or any collections in regards to keeping your high score no credit cards you should become people's biggest downfall yes you do when high credit limit on your credit cards but that doesn't mean that you're supposed to Maximo the fact that lenders trust you with a high credit limit is actually a good thing the kids never have more than 25 to 30% on one single card if you have 3 $10,000 limit credit cards you don't want to have one car with nine thousand dollars on it and the other 2 with nothing technically you don't want it all but if this is your son or it's better to have the 3000 or spread out on each of the three credit cards this makes it seem like you know how to handle your debt more efficiently coming here first having to pay because you did not pay off your credit card in full absolutely not help your credit score again it is the debt to credit limit ratio that will second that Best Buy payment plan that you've never been late on is Kinect for credit score this is again completely false the only payment plan to whatever shopping or cut it as mentioned above are structured payments such as a house or a car and revolving payment such as credit cards which we are you talk about other things that will not show on credit report unless they send you to collections are cell phone bills electric bills and even those stores that have their own credit cards without a Visa Mastercard Discover or American Express logo on it remember without any of those four lokos those absolutely nothing to help your credit number 3 if you dont have credit card that you had for years on end you should close the account again this is false remember long credit history is good you special don't want to close this and use credit card if it has a high limit in fact you should probably use it once every few months on something very minor such as socks for guys just make sure they don't close it due to inactivity remember your FICO score is your reputation to the financial world guard it with her life just because you have a lower credit score doesn't necessarily mean you won't ever be able to get a loan for anything but having a better credit score almost guarantee that the same old will be easier to finance an OB much much cheaper saving you thousands to tens of thousands of the​