Maximizing Your Credit Score

Credit Score is a major determining factor in lenders deciding whether you get the best mortgage rate or a no for your mortgage application. To many people, credit score calculations are a mystery and the ways to better your score are unknown. Why is it no one teaches on this???

Below are several suggestions on getting you closer to maximizing your score.

1. A person needs active trade lines to get a credit score. Trade lines can be credit cards, lines of credit, loans, car leases etc. Most mortgages do not show up on your credit bureau and thus mortgage payments do not increase your score! You must borrow to create a history of your habits of repaying debt!

2. Pay bills on time. Late, missed and unpaid bills lower your score.Think twice about allowing someone to credit check you...multiple checks lowers your score...makes you look like you NEED money. Not to mention, not all credit checks are equal – “B” lenders will drop your score more than “A” lenders!

3. Obtain at least 2 credit cards with a total $2500 max limit sum between them. Under $2500, the lender may not take the credit card activity seriously. Consider credit cards at a store you don’t shop at, or a gas card if you are worried about over spending.

4. Never max credit cards etc...stay below 30% of card limit for the best score and below 50% for next best score. High balances lower your score.

5. Use credit regularly to maintain a credit history. 0 credit use diminishes trustworthiness in eyes of the credit bureau. Make a habit of making 1 small purchase per month on at least 1 credit card.

6. Treat credit like an asset which can maximize your buying power...because it does.

Use these suggestions and climb the credit rating ladder to 900.

For more information, check out the links below: