Author: Kerry Hook
As a single mom credit can be your best friend or your worst nightmare. The strange thing about credit is that it is a mystery to most people. And the mystery doesn’t seem to be limited to ordinary folks like you and me. When I was applying for credit and wanted to understand how my credit score was determined, I couldn’t get a straight answer. I did learn some of the factors that go into its calculation, but exactly how they calculate a credit score seems to be a mystery – even to lenders. The reason for this is that there are three primary companies that keep your credit information. Each has its own formula and each therefore comes up with a different number. These companies have differing reputations for accuracy on the records they keep – so it is important that you find out what is on your credit report.
Who knew for instance that any time you had a credit inquiry – that it was registered on your credit history. Too many inquiries and your credit rating goes down. That means that every time you accept any of those offers for a refinance over the phone, or for a new credit card in order to get 10% off at a store - it will register on your credit history – even if you ultimately don’t accept the offer. This is true also if you apply to rent an apartment because the landlord will likely making a credit check. Keep credit inquires to a limit.
Did you know that if you have too many credit cards it counts against you? Even if they are all up to date – even if you don’t owe anything on them – it still counts against you to have too many credit cards. Strive to keep only two or three cards.
Did you know that if you carry a balance more than half of the limit – it will count against you? Keeping a balance (if you must carry one) of less than half the limit will help raise your credit score.
Did you know that if you have a late payment and it is recorded on your credit report, that it is best to keep the account open for a while until this negative report “rolls off?" Each of your lenders will have a period of 12 (one for each of the last months of the past year) entries that show how you paid over that period of time. Once the account is closed it is “frozen” in time for 7 years from the last date the company made any report on you. This means it stays a negative report for one late payment will stay on your record for a very long time.
It really is imperative that you stay on top of your credit report. Errors abound and those errors will cost you money. If your credit score is low you will not be offered the best rate.
You can check your credit report at:
http://www.freecreditreport.com
Or http://www.creditworthy.com/providers/ag...
The three main credit agencies that are used in the U.S. are: TransUnion, Experian and Equifax.
Check your credit report often. Frequently, accounts you closed are not reported as closed, and that is an error that you can easily remedy by contacting the lender. Be sure to send a copy of your letter to each of the credit agencies so they will know that you want the error fixed.
It does take a bit of work, but it will save you money by getting you a lower interest rate.
California Bad Credit Mortgage
Refinance - http://mountainview-mtge.com/refinance.htm
Consolidate Debts - http://mountainview-mtge.com/consolidate.htm
