There are approximately 82 million adult American’s with poor credit scores. This is a serious problem for those individuals who are in the market for a purchase such as a home, car, boat, etc. For example, a 50 point increase in credit score can save you hundreds of thousands of dollars over the lifetime of a 30 year fixed rate mortgage. On a $300,000 mortgage, the difference between a 620 and 720 FICO score is $70,000 plus, over the life of a 30 year loan. This is enough to send your child to college!
There are several things you can do to increase your credit score. The biggest one is never be late with a payment. This will drop your score faster than anything. Another area to be aware of is your debt to credit line ratio. You should not have over 50% of any credit line used. If you have several credit cards that are maxed out, this dramatically decreases your score. Also, by having credit lines open and not being used can hinder your score.
The best way to work your credit lines is to rotate them. For example, one month use one credit card and pay it off. The next month use a different credit card and pay it off and so on. This shows you are using the credit you have been given, but you are using it responsibly.
Don’t leave your credit to chance. If you need help, contact an expert to get the education you need to take charge of your financial life. We would be glad to hear from you and offer phone numbers of those experts to help you. Take advantage of this tax credit and let’s get you moving!
R.S.V.P. Team
Shari Webb
(307) 286-0470
