Your Credit Report can be a confusing and sometimes intimidating document, but your credit history has an incredible impact on your ability to finance a home, a car, or even get a credit card. In recent years the credit scoring system has been used more and more as the primary means of determining a borrower's ability and or willingness to repay debt. There are many factors that affect your credit score, so let's touch on the more obvious ones.
Payment History - This is the record of payments made on specific accounts. Late payments have an obvious affect on credit, but it is only reported to the credit bureau if it is 30 days or more past the due date. Just because you are 10 days late, and got charged a late fee by the financial institution, does not necessarily mean that it is adversely affecting your credit score. Check your credit now.
Number of Open Accounts - It may surprise you to learn that those 15 credit cards in your wallet with perfect pay histories may still be adversely affecting your credit rating simply because there are so many of them. This may appear to lenders as though you have too much available credit, and consequently will pull your credit scores lower because of the associated risk. Check your credit now.
Excessive Inquiries - Some people think that any inquiry is detrimental to your credit scores, and others think it is OK to have anyone pull their credit at any time. The reality is that they are both wrong. Credit inquiries can have a detrimental affect on your credit rating, but only in excess. No one single inquiry will cause a major problem with your credit scores, but if 8 to 10 different companies pull your credit in a relatively short period of time (within a few weeks of each other), it can certainly have an affect. Inquiries only count when credit is pulled from a company or financial institution, if you pull your own credit, online or otherwise, you are not penalized. Check your credit now.
High Balances - If you have a $5000 credit limit with a balance of $4900, it will reflect on your credit worse than that same account with a $1500 balance. A high proportionate balance gives the appearance of being over extended, and therefore adds risk to your credit profile. Check your credit now.
Credit Counseling - These days you are bombarded with advertising for consumer Credit Counseling Services. They are usually promoted on radio or TV as an opportunity to "Consolidate debt without a Loan", or as a "Non-Profit Debt Relief" service. When it comes to these programs, BUYER BEWARE!!!! They often have hidden fees, and nothing is ever free. What they will not tell you, is that consumer credit counseling has the same affect on your credit as a Chapter 13 Bankruptcy (at least from a mortgage lending standpoint). Be sure to research it extensively before making a decision. Check your credit now.
Primary Residential Mortgage focuses its business exclusively on residential and commercial mortgage financing.
The following are sites that I can recommend if you are looking for other types of financing or services.
Auto Loans:
Household Auto
Credit Cards:
Insurance: Auto, Home Owner's, Life, Health
Pull Your Own Credit Report:
CreditReporting.com
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