Tips on Credit

Balances should be no more than 10% of limits.  Therefore, if your card has a limit of $1,000, your monthly unpaid balance should not go past $100.

-If balances are at 90% of the limit, your score can drop 40-50 points

-If balances are over the limit, it will decrease scores up to 70 points

-It is better to pay down the majority of accounts below 10% of the limit, rather than 1 large account

Always keep small balances on Revolving Credit.

-Make sure cards are used at least once a month to show activity, it shows the banks you can manage credit.

New late payments are worse than a bankruptcy 3 years ago.

-A recent late payment can drop your score up to 70 points.

-All negative information can be removed prior to the 7 year rule.

Having many varieties and lines of open credit will help your credit dramatically (do not exceed 30)

-Seasoned credit (over 2 years old) all types: Master, Visa, Store Cards, Diners, Amex, Line of credit on a checking account, car loans, mortgages, overdraft.

-Opening new credit and closing credit will hurt your credit for 1-2 years.

-The more credit you have the higher your potential score can go unless it is over 30 accounts.

-Having many mortgages will decrease the score even if they are on time or closed.

-New mortgages decrease your score 50-60 points for 5-6 months.

Inquires

-Inquires remain on the report for 2 years and can hurt your credit in the 1st year.

-If a client wants to view their credit and doesn't want a 3rd party to pull it, they can go to www.annualcreditreport.com and get a free copy of all 3 reports, once a year.

Paying Habits

-Paying your bills immediately for 6 months will help boost your scores - NOT ON TIME, BUT IMMEDIATELY!