07/20/2012
Gil Kerbashian (A Lender with Inland Bank) shared a few good points to good credit. Thought I would share them all with you.
Great credit is so important these days but many of us don't know how to bring our scores up. If you know of someone that needs the help, have them call me or forward them this email.
Also, rates are SMOKING HOT right now. If you have a mtg that was taken out before March of 2009, you should be calling me to refnance. Some lenders are at 90 days to process, not us- 45-60 days. I'm at 30-45 days for purchases.
Improving your credit scores:
1.) Check your credit record before the lender does:
All loan applications are followed by credit checks. If the lender sees something they do not like in your credit history, they will reject your application. Your credit record can become worse if the lender rejects your application; so a good idea is to check your credit record before applying for a new loan. Checking your credit file is quite easy to do and is legal according the the Consumer Credit Act of 1974. annualcreditreport.com.
2.) Make sure your credit report has accurate information:
Write the credit repositories and let them know of erroneous information and request that it be stricken or updated. It may take a few letters/tries but it will get done.
3.) Manage your credit:
When a lender looks at your credit history, they take into consideration how much credit you have available or if you have any credit history at all. Having a credit account you do not use is a bad idea and it is recommended you close any account you do not use. Having no credit can also be bad because that does not provide any evidence to the lender that you are good at managing your credit. A way to get good credit fast is by taking out a secure credit card that can be paid back in a couple of weeks or by getting a store card or gas card that can be paid off monthly without any interest.
4.) Co-sign on other family members’ loans:
For young people with no credit records, co-signing a loan can be very helpful. If you link your credit record to that of a family member with a good credit record for example, you will immediately improve your own credit record. This action will also remain there after the arrangement is done. This way you can also improve a bad record by linking to a good one.
5.) Avoid marks against your file:
Marks against your file can have a long term negative impact on your credit record. For example, missed payments will remain on your file for seven years while bankruptcy will last up to ten years. Avoid overspending or maxing out your cards. Less than 15% balance to high limit is best.
6.) Be careful of inquiries:
All credit checks leave foot prints behind, that give new lenders an idea of how much credit you have applied for over a period of time. Too many footprints will give the impression that you cannot get any funds from somewhere else. A good idea is to stop applying for loans once you are rejected.
7.) Prove that you are stable:
Most of all, lenders like stable customers. If you have been living at the same address for a long time or had the same bank account for many years, this shows lenders that you are stable and trustworthy. A great way to prove stability is by not moving around a lot.
I think we can all benefit from these pointers, let's put them to good use and if you're in the market for a new home or to sell your current one, remember, we are here to serve you.
-Michael
