Tuesday, April 28, 2009

Credit Score Can affect Home Loan Approval [Part 2]

Continued from part 1

Eliminate debt

The quickest way to improve your FICO score is raised to pay the balances on credit cards. According to Craig Watts of Fair Isaac, this may raise a FICO score 60-70 points on the night.
The elimination of debt is vital for lenders approving a loan. Credit card history is the financial responsibility because the borrowed amount is due or the borrower. Compare

than for other loans, if a company or institution makes a loan, and it is easy to see why credit history means that good money management.

Distribute regularly

If you are a large charge on your credit card will ensure that payments are spread evenly through multiple cards. Expenditures of more than 50% of your credit limit on a card can lower the score dramatically. Do not spend too much on a single credit card, split up, pay your bills on time and your score will be on track.

Old credit cards

The older a credit card the better. It would be absurd to close a credit card account which was opened for several years and was well managed. In addition, new lines of credit are generally lower credit score. The opening of new lines of credit is good, but not at the expense of positive credit history.

Credit score is always changing

Just because you have had positive credit of three years or even a month ago does not mean that is the case today. A major flaw or some monetary hiccups can change your score. Taking minimum withdrawals from a previous credit line with a good road map is the credit equivalent to a cruise.

To Summarize

If credit is established to maintain. If you're building credit, to exercise discipline and methods of distribution and one day you too, one day, click the button on cruise control, driving into the dream house you've worked hard to win.

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