Your Daily Real
Estate Blog
From
Supreme Manor
Real Estate Services
4 Common Credit Mistakes
Whether
you are looking to buy or refinance a home you just looking for financial peace
of mind, having good credit is important. Here are some actions to beware when
you're trying to improve your scores.
l Asking
a creditor to lower your credit limits.
This will reduce that all-important gap between your balances
and your available credit, which could hurt your scores. If a lender asks you
to close an account or get a limit lowered as a condition for getting a loan,
you might have to do it -- but don't do so without being asked.
l Making
a late payment.
The irony here is that a late or missed payment will hurt good
scores more than bad ones, dropping 700-plus scores by 100 points or more. If
you've already got a string of negative items on your credit reports, one more
won't have a big impact, but it's still something you want to avoid if you're
trying to improve your scores.
l Consolidating
your accounts.
Applying for a new account can ding your scores. So, too, can
transferring balances from a high-limit card to a lower-limit one or
concentrating all or most of your credit-card balances onto a single card. In
general, it's better to have smaller balances on a few cards than a big balance
on one. You should make sure balances on
all cards are below 35% of your limit for that card.
l Applying
for new credit if you already have plenty.
You may appear to be a bigger risk to a creditor if you have
too much credit. Manage your credit
limits wisely. On the other hand, applying for and getting an installment loan can
help your scores if you don't have any installment accounts or you're trying to
recover from a credit disaster such as bankruptcy. Sometimes, when you are trying to improve
your credit score a secured credit card can help.
I hope this information is useful.
Should you need assistance with any of your real estate needs,
please contact Supreme Manor Real Estate Services 773-881-9224. Feel free to visit us on our website or any
of our social media sites.
Have a Supreme Day!
Sheila M. Wilkinson-Sanders
Managing Broker/Owner - CPA, GRI, CNC
Supreme Manor Real Estate Services
1840 West 95th Street
Chicago, IL 60643
(773) 785-0127 Direct
(773) 797-9640 (fax)
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