Got Credit?

Tips to Maintain and Increase your FICO Score

If you’ve had some credit troubles in the past not to worry there is an easy fix.  The “fix” will take effort, consistency, and time.  With these actions you can increase your credit score in as few as 6 months.

FIRST LET’S BREAK DOWN YOUR FICO SCORE

By the way what the heck does “FICO” stand for? Fair Isaac Corporation

credit pie

 LET’S START WITH WHAT TO DO

  • Pay down revolving debt to 30-40% of the credit limit
  • Establish a 2 year credit history with at least 3 different creditors AND pay on time.
  • Have a mix of revolving and installment debt.  Installment refers to a set number of months that the debt will be paid off with set monthly payments such as an auto or mortgage loan.

 

NOW THE TOUGH STUFF WHAT NOT TO DO

  • Open multiple accounts in a short period of time
  • Have your credit run more than 3 times in 90 days
  • Close unused credit accounts
  • C0-sign for anyone, ever
  • Co-sign on Student Loans ever if there is a deferred payment

 

WHAT ABOUT COLLECTIONS AND CHARGE-OFF’s?

  • Collections will be assigned a “payment” based on the balance due
  • Charge-off’s between $250-$1,000 they must be paid in full
  • Charge off’s between $1001-$5,000 do not have to be paid

 

I’VE HAD A SHORT-SALE; A FORECLOSURE ; A BANKRUPTCY

You can buy a home again after 3 years of seasoning with an FHA loan

ARE THERE ANY LOAN PROGRAMS THAT OFFER DOWN-PAYMENT ASSISTANCE?

Yes, many!