Raise your credit score 100 points in forty five days
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RAISE YOUR CREDIT SCORE 100 POINTS IN FORTY-FIVE DAYS Edward Jamison, Jamison Law Group Barry Habib and Sue Woodard,Mortgage Market Guide *Amy Bonis WHAT MAKES UP A CREDIT SCORE? Payment History 35% Balances Carried 30% Credit History 15% Mix Of Accounts 10% Inquiries 10%

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Raise your credit score 100 points in forty five days l.jpg

RAISE YOUR CREDIT SCORE100 POINTS IN FORTY-FIVE DAYS

Edward Jamison, Jamison Law Group

Barry Habib and Sue Woodard,Mortgage Market Guide

*Amy Bonis


What makes up a credit score l.jpg
WHAT MAKES UP A CREDIT SCORE?

  • Payment History 35%

  • Balances Carried 30%

  • Credit History 15%

  • Mix Of Accounts 10%

  • Inquiries 10%


Payment history 35 l.jpg
PAYMENT HISTORY – 35%

  • Bills Paid As Agreed

  • Most Recent 6 Months

  • Highest Weight On Highest Pay History

    • Mortgage

    • Biggest Payment


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BALANCES CARRIED – 30%

  • Keep Balances As Low As Possible

  • Outstanding Balance Versus Available Credit Affects Credit Score

    For example:

    Credit CardBalanceAvailable Credit

    Visa $10,000 $10,000

    Visa $0 $10,000

  • Leave Credit Card Balance As Is = Lower Credit Score

  • Spread Balance Between Existing Cards ($5,000 each) = Higher Credit Score *

  • Mortgage / Installment Less Of Factor


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CREDIT HISTORY – 15%

  • Longer Credit History = Higher Credit Score

  • Long Credit History Paid As Agreed / Positive Impact To Credit Score

  • Never Close Credit Accounts - Especially If Long History – Or Negative Impact To Credit Score


Mix of accounts 10 l.jpg
MIX OF ACCOUNTS – 10%

  • Ideal To Have Installment & Revolving Accounts

  • Mortgage Loan

  • Auto Loan

  • 3 - 5 Credit Cards (More is OK too as long as your balance is not above 30% of the credit limit*)

  • HELOC Should Be Greater Than $40K Or May Report As Revolving Account Versus Mortgage


Inquiries 10 l.jpg
INQUIRIES - 10%

  • Shopping Around?

    Pulling multiple reports for Mortgage and Auto loans within a 30 day period count only as 1 inquiry. If any additional reports are made after that 30 day window then it goes to a 14 day period in which any inquiries within a 14 day period count as 1 inquiry.*

  • Each Inquiry Averages 5 Points


Inquiries that do not hurt the score l.jpg
INQUIRIES THAT DO NOT HURT THE SCORE

  • Job Related

  • Insurance / Utilities

  • Account Review

  • Personal (www.annualcreditreport.com) and obtain free credit report)

  • Promotional (pre-approved offers in the mail)


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BLEMISHED CREDIT CAN BE COSTLY

  • Low Credit Score = Higher Interest Rate

    • Mortgage Loans

    • Credit Cards

    • Auto Loans

    • Insurance Premiums


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STEPS TO TAKE TO INCREASE CREDIT SCORE 100 POINTS

  • Pay Past Due Accounts

  • Get Rid Of Late Payments

  • Have Credit Limits Increased

  • Become An Authorized User

  • Do Not Close Old Accounts – Keep Active


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PAY PAST DUE ACCOUNTS

  • Pay All Accounts That Are Past Due and Bring the Account Current*

  • Past Due Accounts Can = 1 Day Late

  • Can Severely Hurt Credit Score*

  • May Negotiate a Payoff Balance with You*

  • Past Due Accounts Do Not Include:

    • Judgements

    • Collection Accounts


Have late payments removed l.jpg
HAVE LATE PAYMENTS REMOVED

  • Phone Creditor And Request Late Payments Be Removed

  • Be Persistent – Work Your Way Up The Ladder (Remember to get the names of the people you speak with)*

    Always Get A Letter That Documents:

    • Name / Address / Account Number

    • Specific Late To Be Removed

    • On Company Letterhead / Signed By Employee. Ask them to email you the letter today.*


Increase credit limits l.jpg
INCREASE CREDIT LIMITS

  • Every Six Months Request An Increase To Credit Limit On Credit Accounts

  • Have Creditor Base Increase On Credit History

  • If Creditor Must Pull Credit, Do Not Continue; Will Lower Credit Score


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BECOME AN AUTHORIZED USER

  • Ask A Relative Or Friend To Add You To Credit Account

  • Confirm The Following Items:

    • Current Balance Below 10% Of Limit

    • Good Payment History

  • No Risk As Credit Card Goes To Account Holder


Do not close accounts l.jpg
DO NOT CLOSE ACCOUNTS

  • Keep All Accounts Open

  • Use Old Accounts Periodically – Charge Small Amount - Pay off Immediately

  • Closing Accounts With A Long Credit History Will Hurt Credit Score


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SUMMARY

  • Borrow When You Do Not Need It

  • Keep Balance To Limit Ratio Low

  • When Creditor Removes Late And Provides Letter – Use Credit Rescore

  • Never Payoff A Collection / Judgment When Applying For A Mortgage Loan

  • Increasing Credit Score By 10 Points = Interest Savings of $100,000 Over 30 Years ($500K Mortgage Loan)


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Call our office to schedule an appointment to speak with a representative that can review your credit with you.

We offer our clients the opportunity for a credit simulation. Nominal fee may apply.

We look forward to working with you and helping your dreams of homeownership become a reality.

~Amy Bonis Home Loans

919-414-4430


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