These credit reporting bureaus collect information about your credit card use, rental history from landlords and your loan history which includes vehicle and student loans. Then the bureaus will analyze the results and tabulate them into credit scores. Your lender can purchase the reports as well as the FICO scores to serve as summary of your credit history.
If you have a mistake on your credit report from one bureau, there's a chance that it will not appear on the other 2 bureaus' reports. You just need to send a copy of your proof of payment to the bureau to have it removed. It may take up to 30 days to remove the negative item which can result to a delay on the approval of your loan. Make sure to keep several copies of your payment into your file.
FICO credit scores range from 300 to 850. To get the best mortgage rate for your loan, your score must be as close to 850 as possible. Most lenders will give you lower mortgage rates if your credit scores are 750 or higher.
Raise your credit scores by managing your credit. One third of your FICO score is your payment history. One third is based on how much of your available credit you use. If you're only paying the minimum payment on your accounts, that means you're living beyond your means. Don't max out any credit card.
You can also mprove your credit score by paying your debts early and avoid late payments. Data collected by the bureaus includes the loan terms, payment history - on line, early or late payments, monthly balance rollovers, payment amounts, minimum payment history, income-to-debt ratios and percentage use of available credit. Pay off the credit cards that charge the highest interest first. Don't incur new debt.
One of the major factors that affect the credit score is how much revolving credit you have versus how much you're actually using. You can increase your scores by limiting your credit card charges to a maximum of 30% of your card's limit. You can ask your credit card companies to set up an email or text alert to let you know when you're approaching the limit you have set. Maximizing your credit limit can hurt your scores even if you pay your bills in full each time.
Only apply for a credit when you really need it. Every time you apply for credit, it can cause a small dip in your score that lasts up to a year. If a person is making multiple credit applications, it shows the lender that you want to use more credit. Keep in mind that lenders grant the loans to people who doesn't seem to need a loan.
Here's a list of professional lenders that can help you with your credit planning:
Joe Weiss - Alaska USA
Phone: 907-261-3403
Cell Phone: 907-727-5639
Toll-free: (800)737-3033 ext. 3403
Fax : 907-929-6896
o.weiss@alaskausamortgage.com
Richard Mantyla – Residential Mortgage
Phone: 907-222-8833
Cell Phone: 907-230‐4747
mantylar@residentialmtg.com
Jim DiMaggio – Residential Mortgage
Direct Phone: 907-222-8888
Office Phone: 907‐222-8800
dimaggioj@residentialmtg.com
Lindsey Shram - Residential Mortgage
Office: 907- 865-9402
schram@residentialmtg.com
If you have any questions, don't hesitate to contact me. I'll be more than happy to help.
