How to understand your credit score!!! and improve it !!!

                                                                   

When you apply for a mortgage loan, one of the first things your lender will do is check your credit history, but they don’t read through your credit reports page by page. They get a snapshot of your credit called a credit score.
Credit score is a number that helps lenders and others predict how likely are you to make loan payment on time!
You need a good credit score whenever you need to buy a car, rent an apartment, buy a house, or any credit card etc.
They will change your interest rates according to your credit score.

There are 5 parts of your FICO  score

1. Your payment history – about 35%
2. Your debt (how much you owe) – about 30%
3. Length of credit history – about 15%
4. New credit – about 10%
5. Credit mix – about 10%

When lenders talk about credit scores they usually mean, FICO (Fair Isaac Corporation). They range from 300-850. Scores from 600 - 800 are considered good credit scores. Scores below 600 are considered high risk scores.

Improving your credit score can help you

1. Lower you interest rate
2. Speed up credit approval
3.Reduce deposits required by utility companies
4.Get approved for apartments
5. Get better credit cards, auto loans, and mortgage offers.

Improve your credit scores by

1. Pay your bills on time. 
2. Keep balances as low as possible on your credit cards.
3. Don’t move your credit from card to card. If a credit card company is charging you a higher interest rate than you feel is fair, contact them and negotiate a lower one or pay the card off in full.
4. Only open a new credit card, if you need it.
5. Check you credit report regularly

Check your credit scores once a year.

Annual credit report service: Congress established this outlet to make it easier for the consumers to check their credit scores from all three bureaus (Equifax, Experian, FICO).
You are entitled to get get one free credit report once a year, from all three credit reporting agencies. 
www.annualcreditreport.com 
phone :1 877 322 8228
Postal: Annual Credit Report Request Service
            P.O. Box 105281
            Atlanta, GA 30348

Other sources to get the 
Myfico.com                          Lenders most often use score from this company. This wont be free. 
www.equifax.com
www. experian.com
www.transunion.com

Mortgage lenders     The lenders will get your credit score for free. 

Once you get your report make sure

1. you get high score and low score
2. Getting your own credit score will NOT affect your credit score, if it is from above sources. 
3. Review your credit report for mistakes, If there is a mistake, immediately contact the agency and the creditor reporting the information. 
4.If you have questions  or problems contact the company that provided the information. 

Need more help with credit improvement, contact me 

Also, 
Search for homes in Virginia
www.buyandsellnorthvirginia.com
Contact me for selling your home at the most amount of money in least amount of time
Asifa Zia -The Realtor YOU want
licensed in VA
Keller Williams Solutions Realty, Manassas VA
540-729-3470
asifazia@kw.com


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