Maintain Healthy Credit Score
Maintaining a healthy credit score will make your life easier when it comes to obtaining credit cards, mortgage loans or even insurance. As a general rule, a higher credit score makes it easier and less expensive to obtain a mortgage loan, credit card or insurance coverage. Credit scores typically range from 300 to 850, with the 750 to 850 range being considered excellent. Most people do not have excellent credit though – according to myFICO, the median credit score in America is 713. But don’t fret – if you have a lower credit score than you want, there are ways to improve it.
In an effort to help you achieve more favorable financing terms on your home mortgage, or any line of credit, we summarized a few fundamentals to guide you in establishing and maintaining a healthy credit score.
The somewhat obvious:
- Borrow only what you can afford to repay
- Make all of your payments on time
- Avoid excessive requests or inquiries for credit
- Have an emergency account to pay for unexpected expenses
- Check your report annually to contest and remove any erroneous information
The not so obvious:
- Do not open new store credit cards just to save on a purchase. New accounts can lower your score and too many payments can be difficult to manage. Saving 10% on a $300 lawn mower means little if it costs you even just fractionally more on a $300,000 home loan.
- Do not open new accounts just to transfer balances for an introductory rate. In addition to possibly lowering your score, these offers often have traps. Instead, use them to leverage a lower rate from your existing card company.
- Do not close old accounts. If you have a good record of payments on old accounts, these will benefit your score. Using them occasionally and conservatively will keep them active and contribute toward a good score.
- Do not be afraid to use credit. Without the use of credit, you will have no score, and that can be just as bad as a low one.
- Keep a high credit line and a low balance. Credit utilization ratios measure this relationship and lower is better.
- Maintain a variety of account types. A combination of revolving, installment and secured financing along with excellent records of payment will yield a higher score. But don’t run out and open an account just to have diversity, as this is the least influential factor.
Remember, if you have questions about managing your credit or your eligibility for a mortgage loan, we are here to help. Locate a licensed Inlanta Mortgage loan officer using our branch locator or apply online today and we will connect you with a loan officer in your area.
ABOUT INLANTA MORTGAGE
Headquartered in Brookfield, Wisconsin, Inlanta Mortgage is a growing mortgage banking firm committed to quality mortgage lending, ethical operations and strong customer service.
Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Freddie Mac and Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs.
Inlanta Mortgage was recently named a Top Workplace for a third time in 2015. Inlanta has also received the Platinum Million Dollar USDA Lender Award and has been recognized as a Top Mortgage Employer by National Mortgage Professional and a Top 100 Mortgage Banking Company and 100 Best Mortgage Companies to Work For by Mortgage Executive Magazine.
Inlanta Mortgage, Inc. NMLS #1016