Credit Do’s and Dont’s

Credit_Issues

 

5 Things to Impact or Increase Your Credit Score:

 

1. Payment History (impacts 35% of your credit score)
Payment history accounts for how you have paid your bills in the past, what the balances are on your credit accounts, what type of credit you have & how many late payments have occurred.

2. Balances owed on your account (impacts 30% of your credit score)
Using more than 30% of your available balance lowers your score. For example, if your credit card limit is $1000, the debt on the card shouldn’t be more than $300 in an effort to keep your credit score from being negatively affected.

3. Length of credit history (impacts 15% of your credit score)
The longer you have accounts open the better.

4. New Credit (impacts 10% of your credit score)

5. Mix of Credit (impacts 10% of your credit score)

Mix credit are the types of diverse credit you have. Installment credit v/s revolving credit.

An example of installment credit is a mortgage or student loan. An example of revolving credit is credit cards.

This information can surely make an impact on whether you are pre approved for a loan.

Sign Up for your Identity Theft Protection to include Credit Monitoring & get tips on how to establish & increase your credit score.

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Credit Do’s & Don’ts:

 

DO’s

  • DO provide requested documentation promptly and in its entirety.
  • DO continue living at your current residence.
  • DO continue making your mortgage or rent payments.
  • DO continue to use your credit as normal.
  • DO keep working at your current employer.
  • DO keep your same insurance company.
  • DO stay current on all existing accounts.

DONT’s

  • DON’T change your employment or marital status.
  • DON’T make any major purchases (car, furniture, jewelry, etc.).
  • DON’T change bank accounts.
  • DON’T make any large cash deposits into your bank accounts.
  • DON’T transfer any balances from one account to another.
  • DON’T close any credit card accounts.
  • DON’T consolidate your debt onto one or two credit cards.
  • DON’T apply for new credit or open a new credit card.
  • DON’T max out or overcharge on your credit card accounts.
  • DON’T take out a new loan or co-sign on a loan.
  • DON’T pay off any loans or credit cards, charge offs, or collections without discussing it with us first.
  • DON’T finance any elective medical procedure.
  • DON’T join a new fitness club.
  • DON’T open a new cellular phone account.
  • DON’T start any home improvement projects.
  • DON’T have your credit pulled or dispute any information on your credit report during the loan process.

 

 

 

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