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Today's tip will help you whether you are buying a new house, a new car, a cell phone, or applying for homeowners insurance!
With the rapidly changing conditions we've seen in the real estate and mortgage industries, it's critical to keep your credit score as high as possible.
Some employers pull credit reports on job applicants, so it will even help there.
These quick tips will help increase your overall credit score.
First, never cancel a credit card that is more than 2 years old. Having a "seasoned" account, one that is more than 2 years old is a big plus for you.
Next, increase your maximum allowable credit limit. In other words, if you have a credit card that is close to its maximum balance, call the credit card company and ask them to increase the credit limit.
The credit bureaus don't like to see "maxed out" credit. Tell them you would like them to do this without pulling your credit.
In addition to this, spread out your balances among your cards trying to keep the ratio between card balances and credit limit to 30% or less.
For example, let's say you have 3 credit cards and $3,000 in credit card debt. If all the cards have limits of say $4,000, it would be best to put $1,000 on each of the cards than to have just 1 of those cards with the full $3000 balance.
Finally, be sure to pay your bills on time. The number one reason for a low credit score is late payments.
And here's a scary fact. Studies show that 79% of all credit reports have errors on them. 79%!!! That's almost 8 out of every 10 reports. That almost sounds criminal, but it's true.
If you are even considering buying a new home or refinancing, let's take a look and see if we need to do some "homework" to build your credit score up to its highest possible point. Since lower scores mean higher interest rates, even a few lost points on your credit score could cost you tens of thousands of dollars in wasted interest payments.
Don't wait, give me a call soon to talk about your options.
You see, our relationship doesn't end when I help you find a beautiful home for your family; that's really just the beginning. Although I am here to make sure you get to the closing table with no surprises, I also want to help improve the quality of your life and to save you some of your hard earned money. And when your family grow's, or you decide to invest in another property, I want to be there to help you then too!
Thanks again for letting me enter your world each week and thanks for the referrals of your friends and family members. I appreciate it and so do they, I promise you that!
Sincerely,
Ken
951-760-3833
CA DRE License #01418440
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