Sunday, February 28, 2021

Join our email blast

Don’t let credit score rain on your home-hunting parade

Posted September 18, 2013 in Advice Column

An important step to finding a home, whether you’re renting or buying, is ensuring that you have a good credit history. Obtaining your free credit report from all three agencies is easy, and all consumers should do it at least once a year.
•    Request a copy of your credit score report — and make sure it is correct. Your credit report illustrates your credit performance, and it needs to be accurate so that you can apply for other loans, such as a mortgage. Everyone is entitled to receive a free copy of his or her credit report annually from each of the three credit reporting agencies, but you must go through the Federal Trade Commission’s website at www.annualcreditreport.com, or call 1-877-322-8228.
•    Set up automatic bill pay. Payment history makes up 35 percent of your credit score, according to http://www.myfico.com/. The longer you pay your bills on time, the better your score. Avoid missed payments by setting as many of your bills to automatic pay as possible.
•     Keep balances low on credit cards and “revolving credit.” Racking up big balances can hurt your scores, regardless of whether you pay your bills in full each month. You often can increase your scores by limiting your charges to 30 percent or less of a card’s limit.
•    Apply for and open new credit accounts only as needed. Keep this in mind the next time a retailer offers you 10 percent off if you open an account. However, if you need a new line of credit, don’t jump at the first appealing offer; compare rates and fees offered through mail solicitation, on the Internet or at your local bank.
•    Don’t close old, paid-off accounts. According to FICO, closing accounts can never help your score and can, in fact, damage it.
•    Talk to credit counselors if you’re in trouble. Using legitimate, non-profit credit counseling can help you manage your debt and won’t hurt your credit score. But avoid debt settlement; it will hurt your score since you’re paying less than you owe. For more information on debt management, contact the National Foundation for Consumer Credit (www.nfcc.org).

Information provided by Webster City Federal Savings Bank, 820 Des Moines St., Webster City, 515-832-3071, www.webcityfed.com.





Post a Comment

Your email address will not be published. Required fields are marked *

*