By Investopedia
While real estate agents often exclusively service those in the market to buy or sell a home, some can also be excellent resources for assisting renters in finding their dream apartments, condos or rental homes. In fact, having a real estate agent in a large, highly competitive market such as New York, Los Angeles or Chicago can give a renter a huge advantage in his or her search. In addition to listings that can easily be uncovered in simple Internet searches, these agents also have access to rental listings included in the Multiple Listing Service (MLS) database, as well as unlisted units coming on the market.
Beyond giving renters a leg up in their search, real estate agents can also be a powerful asset when negotiating terms with future landlords. Agents can work with you to ensure that you're getting the best price for your rental, as well as help you obtain better terms, including reduced security deposits or credits for work that may need to be completed prior to your move-in.
The easiest way to find a real estate agent who also services renters is to check local rental listings online or in your community newspaper. Keep an eye out for listings posted by real estate firms rather than property management companies or individual landlords. Once you find a real estate agent who has posted a listing that appeals to you, get in touch with him or her via phone or email, and ask about the listing that you've found, as well as comparable listings that they may also be aware of. From there you can have your agent set up showings for you just as you would for a sale property.
Sunday, May 22, 2016
Friday, May 13, 2016
Home Buyers: Why Use a Real Estate Agent?
At first, you may be able to convince yourself that you don’t need a real estate agent to buy a home. When you find yourself sifting through papers you don’t understand, you may begin to reconsider. There are many reasons to hire a real estate agent when house hunting – here are a few provided by the experts at In-House Realty associated with Quicken Loans.
No Direct Cost to You! – One misconception in real estate is that a home buyer pays commission. Not so! The seller pays the commission, and if two agents are involved in the transaction, that same commission will be split between them. If it ever becomes an issue, keep in mind you have the upper hand in all negotiations in today’s buyer’s market.
Multiple Listing Service – The Multiple Listing Service (or MLS) is a database which allows real estate agents to share information about houses for sale. Your real estate agent, who is licensed with the state, will have access to these listings. After learning of your criteria for your new home, your real estate agent will get to work by whittling down the long list of potential homes. Without a real estate agent, you’ll be limited in your searches, which could make your home search difficult and tedious.
Negotiation – Your initial offer on any given property can significantly help or hurt your chances of acquiring that home. Rather than take on a new full-time job researching home values, an experienced real estate agent will have already done the work and will be able to negotiate the best possible purchase price for you. Real estate agents know when to stop and when to keep adjusting the purchase price in negotiations. The seller has a real estate agent representing them – you should too!
Legal Protection – When making an important financial transaction such as buying a home, it’s important to know that you are legally protected in case things don’t go as planned. When your real estate agent drafts a purchase agreement, they will include certain contingencies that protect you from issues, such as a loss of financing, failed inspection or unfulfilled promises. If the situation warrants, you may be able to recoup your earnest money deposit or void your offer completely.
Paperwork, paperwork, paperwork! – Scaling the mountains of paperwork associated with buying a home is your real estate agent’s job! A real estate agent can prevent you from losing and forgetting paperwork or from signing on the wrong line. Without their help, you could miss things that may delay the process and push back your closing date.
No Direct Cost to You! – One misconception in real estate is that a home buyer pays commission. Not so! The seller pays the commission, and if two agents are involved in the transaction, that same commission will be split between them. If it ever becomes an issue, keep in mind you have the upper hand in all negotiations in today’s buyer’s market.
Multiple Listing Service – The Multiple Listing Service (or MLS) is a database which allows real estate agents to share information about houses for sale. Your real estate agent, who is licensed with the state, will have access to these listings. After learning of your criteria for your new home, your real estate agent will get to work by whittling down the long list of potential homes. Without a real estate agent, you’ll be limited in your searches, which could make your home search difficult and tedious.
Negotiation – Your initial offer on any given property can significantly help or hurt your chances of acquiring that home. Rather than take on a new full-time job researching home values, an experienced real estate agent will have already done the work and will be able to negotiate the best possible purchase price for you. Real estate agents know when to stop and when to keep adjusting the purchase price in negotiations. The seller has a real estate agent representing them – you should too!
Legal Protection – When making an important financial transaction such as buying a home, it’s important to know that you are legally protected in case things don’t go as planned. When your real estate agent drafts a purchase agreement, they will include certain contingencies that protect you from issues, such as a loss of financing, failed inspection or unfulfilled promises. If the situation warrants, you may be able to recoup your earnest money deposit or void your offer completely.
Paperwork, paperwork, paperwork! – Scaling the mountains of paperwork associated with buying a home is your real estate agent’s job! A real estate agent can prevent you from losing and forgetting paperwork or from signing on the wrong line. Without their help, you could miss things that may delay the process and push back your closing date.
Wednesday, May 4, 2016
10 Best-Kept Secrets for Buying a Home
Get the most out of your money with these handy home-buying tips from HGTV
Buying Secret #10: Keep Your Money Where It Is
It’s not wise to make any huge purchases or move your money around three to six months before buying a new home. You don’t want to take any big chances with your credit profile. Lenders need to see that you’re reliable and they want a complete paper trail so that they can get you the best loan possible. If you open new credit cards, amass too much debt or buy a lot of big-ticket items, you’re going to have a hard time getting a loan.
Buying Secret #9: Get Pre-Approved for Your Home Loan
There’s a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can't afford. It also gives you the opportunity to shop around for the best deal and the best interest rates. Do your research: Learn about junk fees, processing fees or points and make sure there aren’t any hidden costs in the loan.
Buying Secret #8: Avoid a Border Dispute
It’s absolutely essential to get a survey done on your property so you know exactly what you’re buying. Knowing precisely where your property lines are may save you from a potential dispute with your neighbors. Also, your property tax is likely based on how much property you have, so it is best to have an accurate map drawn up.
Buying Secret # 7: Don’t Try to Time the Market
Don’t obsess with trying to time the market and figure out when is the best time to buy. Trying to anticipate the housing market is impossible. The best time to buy is when you find your perfect house and you can afford it. Real estate is cyclical, it goes up and it goes down and it goes back up again. So, if you try to wait for the perfect time, you’re probably going to miss out.
Buying Secret # 6: Bigger Isn’t Always Better
Everyone’s drawn to the biggest, most beautiful house on the block. But bigger is usually not better when it comes to houses. There’s an old adage in real estate that says don’t buy the biggest, best house on the block. The largest house only appeals to a very small audience and you never want to limit potential buyers when you go to re-sell. Your home is only going to go up in value as much as the other houses around you. If you pay $500,000 for a home and your neighbors pay $250,000 to $300,000, your appreciation is going to be limited. Sometimes it is best to is buy the worst house on the block, because the worst house per square foot always trades for more than the biggest house.
Buying Secret #5: Avoid Sleeper Costs
The difference between renting and home ownership is the sleeper costs. Most people just focus on their mortgage payment, but they also need to be aware of the other expenses such as property taxes, utilities and homeowner-association dues. New homeowners also need to be prepared to pay for repairs, maintenance and potential property-tax increases. Make sure you budget for sleeper costs so you’ll be covered and won’t risk losing your house.
Buying Secret #4: You’re Buying a House – Not Dating It
Buying a house based on emotions is just going to break your heart. If you fall in love with something, you might end up making some pretty bad financial decisions. There’s a big difference between your emotions and your instincts. Going with your instincts means that you recognize that you’re getting a great house for a good value. Going with your emotions is being obsessed with the paint color or the backyard. It’s an investment, so stay calm and be wise.
Buying Secret #3: Give Your House a Physical
Would you buy a car without checking under the hood? Of course you wouldn’t. Hire a home inspector. It’ll cost about $200 but could end up saving you thousands. A home inspector’s sole responsibility is to provide you with information so that you can make a decision as to whether or not to buy. It’s really the only way to get an unbiased third-party opinion. If the inspector does find any issues with the home, you can use it as a bargaining tool for lowering the price of the home. It’s better to spend the money up front on an inspector than to find out later you have to spend a fortune.
Buying Secret #2: The Secret Science of Bidding
Your opening bid should be based on two things: what you can afford (because you don’t want to outbid yourself), and what you really believe the property is worth. Make your opening bid something that’s fair and reasonable and isn’t going to totally offend the seller. A lot of people think they should go lower the first time they make a bid. It all depends on what the market is doing at the time. You need to look at what other homes have gone for in that neighborhood and you want to get an average price per square foot. Sizing up a house on a price-per-square-foot basis is a great equalizer. Also, see if the neighbors have plans to put up a new addition or a basketball court or tennis court, something that might detract from the property’s value down the road.
Today, so many sellers are behind in their property taxes and if you have that valuable information it gives you a great card to negotiate a good deal. To find out, go to the county clerk’s office.
Sellers respect a bid that is an oddball number and are more likely to take it more seriously. A nice round number sounds like every other bid out there. When you get more specific the sellers will think you've given the offer careful thought.
Buying Secret #1: Stalk the Neighborhood
Before you buy, get the lay of the land – drop by morning noon and night. Many homebuyers have become completely distraught because they thought they found the perfect home, only to find out the neighborhood wasn’t for them. Drive by the house at all hours of the day to see what’s happening in the neighborhood. Do your regular commute from the house to make sure it is something you can deal with on a daily basis. Find out how far it is to the nearest grocery store and other services. Even if you don’t have kids, research the schools because it affects the value of your home in a very big way. If you buy a house in a good school district versus bad school district even in the same town, the value can be affected as much as 20 percent.
Buying Secret #10: Keep Your Money Where It Is
It’s not wise to make any huge purchases or move your money around three to six months before buying a new home. You don’t want to take any big chances with your credit profile. Lenders need to see that you’re reliable and they want a complete paper trail so that they can get you the best loan possible. If you open new credit cards, amass too much debt or buy a lot of big-ticket items, you’re going to have a hard time getting a loan.
Buying Secret #9: Get Pre-Approved for Your Home Loan
There’s a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can't afford. It also gives you the opportunity to shop around for the best deal and the best interest rates. Do your research: Learn about junk fees, processing fees or points and make sure there aren’t any hidden costs in the loan.
Buying Secret #8: Avoid a Border Dispute
It’s absolutely essential to get a survey done on your property so you know exactly what you’re buying. Knowing precisely where your property lines are may save you from a potential dispute with your neighbors. Also, your property tax is likely based on how much property you have, so it is best to have an accurate map drawn up.
Buying Secret # 7: Don’t Try to Time the Market
Don’t obsess with trying to time the market and figure out when is the best time to buy. Trying to anticipate the housing market is impossible. The best time to buy is when you find your perfect house and you can afford it. Real estate is cyclical, it goes up and it goes down and it goes back up again. So, if you try to wait for the perfect time, you’re probably going to miss out.
Buying Secret # 6: Bigger Isn’t Always Better
Everyone’s drawn to the biggest, most beautiful house on the block. But bigger is usually not better when it comes to houses. There’s an old adage in real estate that says don’t buy the biggest, best house on the block. The largest house only appeals to a very small audience and you never want to limit potential buyers when you go to re-sell. Your home is only going to go up in value as much as the other houses around you. If you pay $500,000 for a home and your neighbors pay $250,000 to $300,000, your appreciation is going to be limited. Sometimes it is best to is buy the worst house on the block, because the worst house per square foot always trades for more than the biggest house.
Buying Secret #5: Avoid Sleeper Costs
The difference between renting and home ownership is the sleeper costs. Most people just focus on their mortgage payment, but they also need to be aware of the other expenses such as property taxes, utilities and homeowner-association dues. New homeowners also need to be prepared to pay for repairs, maintenance and potential property-tax increases. Make sure you budget for sleeper costs so you’ll be covered and won’t risk losing your house.
Buying Secret #4: You’re Buying a House – Not Dating It
Buying a house based on emotions is just going to break your heart. If you fall in love with something, you might end up making some pretty bad financial decisions. There’s a big difference between your emotions and your instincts. Going with your instincts means that you recognize that you’re getting a great house for a good value. Going with your emotions is being obsessed with the paint color or the backyard. It’s an investment, so stay calm and be wise.
Buying Secret #3: Give Your House a Physical
Would you buy a car without checking under the hood? Of course you wouldn’t. Hire a home inspector. It’ll cost about $200 but could end up saving you thousands. A home inspector’s sole responsibility is to provide you with information so that you can make a decision as to whether or not to buy. It’s really the only way to get an unbiased third-party opinion. If the inspector does find any issues with the home, you can use it as a bargaining tool for lowering the price of the home. It’s better to spend the money up front on an inspector than to find out later you have to spend a fortune.
Buying Secret #2: The Secret Science of Bidding
Your opening bid should be based on two things: what you can afford (because you don’t want to outbid yourself), and what you really believe the property is worth. Make your opening bid something that’s fair and reasonable and isn’t going to totally offend the seller. A lot of people think they should go lower the first time they make a bid. It all depends on what the market is doing at the time. You need to look at what other homes have gone for in that neighborhood and you want to get an average price per square foot. Sizing up a house on a price-per-square-foot basis is a great equalizer. Also, see if the neighbors have plans to put up a new addition or a basketball court or tennis court, something that might detract from the property’s value down the road.
Today, so many sellers are behind in their property taxes and if you have that valuable information it gives you a great card to negotiate a good deal. To find out, go to the county clerk’s office.
Sellers respect a bid that is an oddball number and are more likely to take it more seriously. A nice round number sounds like every other bid out there. When you get more specific the sellers will think you've given the offer careful thought.
Buying Secret #1: Stalk the Neighborhood
Before you buy, get the lay of the land – drop by morning noon and night. Many homebuyers have become completely distraught because they thought they found the perfect home, only to find out the neighborhood wasn’t for them. Drive by the house at all hours of the day to see what’s happening in the neighborhood. Do your regular commute from the house to make sure it is something you can deal with on a daily basis. Find out how far it is to the nearest grocery store and other services. Even if you don’t have kids, research the schools because it affects the value of your home in a very big way. If you buy a house in a good school district versus bad school district even in the same town, the value can be affected as much as 20 percent.
Monday, January 25, 2016
7 Tips to Avoid Overspending
Now it might be easy to think that getting into debt because of overspending only applies to spending on big-ticket items, like expensive appliances and cars. But that is not the case. Many people go into debt because of small, unnecessary items that pile up and wound up on their credit card bills.
Here we give you 7 tips to avoid overspending the next time you shop.
Stick to a list
We never get tired of reiterating this in our posts. Having a list helps defend your budget from the voices in your head that are egging on you to “buy this, buy that“. It keeps you focused on your goal: going to the shop and picking up what you intended to buy. Make sure, however, that what you are buying are more of needs than wants.
Separate wants from needs
Moderation is key to having a healthy financial life. While we recommend prioritizing needs, we don’t want you to deprive yourselves. Fulfilling our wants is also a source of joy, so we recommend separating wants from needs, and having a budget for each. Besides, when you feel deprived, you will only tend to compensate with a spending spree sooner or later.
Use cash instead of credit or debit card
Using cash makes it easy to see money leaving your wallet. That’s not the case when you use credit cards, debit cards, or some form of electronic cash. When using “intangible” cash, you do not readily feel your hard-earned money leave your bank account, so you tend to shop some more.
Beware of up-selling tactics
Salesmen are trained in up-selling tactics. Order a burger and you’ll be asked if you want to up-size your drinks. Buy a laptop and your salesman will ask if you want an extended warranty or a bigger memory instead. The key is to know what you need and stick to it come buying time.
Avoid emotional spending
Many people fall into the trap of emotional spending or “retail therapy“, i.e., spending to make themselves feel better especially when they’re unhappy. Spending when you’re unhappy may make you feel better for a moment but it doesn’t really solve the problem that’s causing you unhappiness. When the good feeling that came after retail therapy wears off, the feeling of unhappiness comes back. You haven’t solved the problem… and look you got a doodad to pay for in the next few months.
Budget (There’s an app for that!)
Bought a new high-end phone? Might as well use it to organize your finances. Nowadays, there are lots of free applications or “Apps” for budgeting. Ahorro, for example, is a beautiful, free iOS app that lets you enter your daily expenses, your budget, and your income. A summary report will let you see where you overspent, and whether you already exceeded on your allotted budget.
Got a raise? Don’t upgrade your lifestyle yet
More income means more expenses. A lot of people think that income equals wealth, so that when they get a salary raise, they feel richer than before and then upgrade their lifestyle to match their new income level. Get a 20% salary raise, then move to a bigger apartment that costs 20% more than before. That’s preposterous. Just because a roof over our head is a necessity doesn’t mean it’s okay to overspend on rent.
Aside from being a cause of bad debt, overspending can hamper your ability to save money, or set you back on your financial goals as you try to dip into your savings. When asked why you’re not getting wealthy, you should take an honest look at your spending habits, not just your income.
-- from http://financialrescuellc.com/
Looking for a new home? Contact MyHappyHomeSolutions.com
Monday, January 18, 2016
Do's and Don'ts to Improve Your Credit Score
Everyone wants to know how to improve their credit score. Here are some suggested tips to follow:
DO:
1. Pay your bills on time. Delinquent payments and collections can have a major negative impact on your score.
2. If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your score.
3. If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor. This will not improve your score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
4. Keep balances low (1-9% utilized) on credit cards and other revolving credit. High outstanding debt can affect a score. All revolving accounts reporting a 0 balance results in a Fico score decrease.
5. Pay off debt rather than move it around.
6. Re-establish your credit history if you have had problems.
7. Opening new accounts responsibly and paying them off on time will raise your score in the long term.
8. Note that it is OK to request and check your own credit file. This will not affect your score, as long as you order your credit file directly from the credit reporting agency or through an organization authorized to provide credit files to consumers (such as myFICO).
9. Apply for and open new credit accounts only as needed.
10. Have credit cards but manage them responsibly. In general, having credit cards and installment loans (and paying timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
DON'T:
1. Close unused credit cards as a short-term strategy to raise your score. NEVER close an open account unless it is costing you money!
2. Open a number of new credit cards that you do not need, just to increase your available credit. This approach could backfire and actually lower your score.
3. If you have been managing credit for a short time, do not open a lot of new accounts too rapidly. New accounts will lower your average account age, which will have a larger effect on your score if you do not have a lot of other credit information. Also, rapid account build-up can look risky if you are a new credit
user. Do your rate shopping for a given loan within a focused period of time. FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.
-- from http://ficoforums.myfico.com/
If you're ready to explore your options for purchasing a home -- whether you do so with conventional mortgage lending, or through seller financing, or Rent to Own -- Happy Home Solutions can help. Call or Text Adam at 630-697-4500. We always have Rent to Own homes available!
DO:
1. Pay your bills on time. Delinquent payments and collections can have a major negative impact on your score.
2. If you have missed payments, get current and stay current. The longer you pay your bills on time, the better your score.
3. If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor. This will not improve your score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
4. Keep balances low (1-9% utilized) on credit cards and other revolving credit. High outstanding debt can affect a score. All revolving accounts reporting a 0 balance results in a Fico score decrease.
5. Pay off debt rather than move it around.
6. Re-establish your credit history if you have had problems.
7. Opening new accounts responsibly and paying them off on time will raise your score in the long term.
8. Note that it is OK to request and check your own credit file. This will not affect your score, as long as you order your credit file directly from the credit reporting agency or through an organization authorized to provide credit files to consumers (such as myFICO).
9. Apply for and open new credit accounts only as needed.
10. Have credit cards but manage them responsibly. In general, having credit cards and installment loans (and paying timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
DON'T:
1. Close unused credit cards as a short-term strategy to raise your score. NEVER close an open account unless it is costing you money!
2. Open a number of new credit cards that you do not need, just to increase your available credit. This approach could backfire and actually lower your score.
3. If you have been managing credit for a short time, do not open a lot of new accounts too rapidly. New accounts will lower your average account age, which will have a larger effect on your score if you do not have a lot of other credit information. Also, rapid account build-up can look risky if you are a new credit
user. Do your rate shopping for a given loan within a focused period of time. FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.
-- from http://ficoforums.myfico.com/
If you're ready to explore your options for purchasing a home -- whether you do so with conventional mortgage lending, or through seller financing, or Rent to Own -- Happy Home Solutions can help. Call or Text Adam at 630-697-4500. We always have Rent to Own homes available!
Monday, January 11, 2016
How Often Does My Credit Score Change?
How often does my score change?
Your credit file is continually updated with new information from your creditors. The FICO score is calculated based on the latest "snapshot" of information contained in your file at the time the score is requested. Therefore, your FICO score from a month ago is probably not the same score a lender would get from the credit reporting agency today. Fluctuations are quite common.
Why are my scores different?
Your scores may be different at each of the three main credit reporting agencies as the FICO score only considers the data in your credit file from that agency. If your score from the three credit reporting agencies is different, it is probably because the information those agencies have on you differs. Also keep in mind that
there is a different FICO formula for each credit reporting agency.
How can I improve my score?
It takes time and there is no quick fix. In fact, quick fix efforts can backfire. Scores reflect credit payment patterns over time with more emphasis on recent information. The best advice is to manage your credit responsibly over time. Scores automatically improve, as one's overall credit picture gets better. That means showing a historical pattern of paying your bills on time and using credit conservatively.
-- from http://ficoforums.myfico.com/
If you're ready to explore your options for purchasing a home -- whether you do so with conventional mortgage lending, or through seller financing, or Rent to Own -- Happy Home Solutions can help. Call or Text Adam at 630-697-4500. We always have Rent to Own homes available!
Your credit file is continually updated with new information from your creditors. The FICO score is calculated based on the latest "snapshot" of information contained in your file at the time the score is requested. Therefore, your FICO score from a month ago is probably not the same score a lender would get from the credit reporting agency today. Fluctuations are quite common.
Why are my scores different?
Your scores may be different at each of the three main credit reporting agencies as the FICO score only considers the data in your credit file from that agency. If your score from the three credit reporting agencies is different, it is probably because the information those agencies have on you differs. Also keep in mind that
there is a different FICO formula for each credit reporting agency.
How can I improve my score?
It takes time and there is no quick fix. In fact, quick fix efforts can backfire. Scores reflect credit payment patterns over time with more emphasis on recent information. The best advice is to manage your credit responsibly over time. Scores automatically improve, as one's overall credit picture gets better. That means showing a historical pattern of paying your bills on time and using credit conservatively.
-- from http://ficoforums.myfico.com/
If you're ready to explore your options for purchasing a home -- whether you do so with conventional mortgage lending, or through seller financing, or Rent to Own -- Happy Home Solutions can help. Call or Text Adam at 630-697-4500. We always have Rent to Own homes available!
Monday, January 4, 2016
How Is My Credit Score Calculated?
Figuring out how your credit score is calculated is tricky, but here are some general guidelines:
-35% Payment History. Meaning any lates; collections; charge offs; bankruptcies; judgments; liens or the such will hurt the score. All is time based, the older the information the less it is contributing to the scores.
-30% Utilization. It is better to have several accounts with low balances distributed then it is to have fewer accounts maxed out. To figure utilization: Balance (divided) by Credit Limit = percentage. Lower than 10% recommended per account, this is one of the fastest means for increasing the over all credit score.
-15% Established History. The longer you maintain open accounts with creditors the better. When first starting out of course this is not easy; but this is where getting added as an Authorized User to another persons established credit comes in best. Remember that the contributor must have an account that has long history; clean payment record; high credit limit; and low balance. Also need to check with the creditor to insure that they have a policy to report authorized user accounts to all three major credit reporting agencies.
Note: Authorized user accounts are the best way to go; since you are not legally responsible for the debt rather than Joint or Co-Signer accounts. Also, if this account starts to report negatively; these accounts are usually easier to remove from the credit reports by either contacting the creditor and requesting termination of the relationship; or disputing through the CRAs.
Update: In its original form, FICO 08 would not use AU accounts in scoring. It has been modified: FICO 08 now WILL continue to count legitimate AU accounts. As of the end of 2008, the EX version of FICO 08 is only being used by a few lenders.
-10% Inquiries. Don't apply for credit unless you know you can get it or that you need to get it; unnecessary credit inquiries are going to hurt the scores - especially if your over all credit file is small to begin with.
Tip: When applying for credit pull your own credit report first (this is a soft hit and won't drop your scores). With credit report in hand go visit your local banks or credit unions. Show them the reports; and don't allow them to pull a credit report of their own unless they can say for sure that you will be approved, this way you save your self unnecessary pulls on your credit report if they decline you.
If they say yes, you are approved, then they will need to pull credit report to seal the deal.
Mortgage & Auto industry has special rules for inquiries: all applications for credit resulting in pulled credit reports within a 14 day period of time will only count as one inquiry & will be suppressed from affecting credit scores for 30 days.
So if you plan to go shopping for a mortgage or a car, do your research first picking what companies you want to apply with and do this all within a 2 week period of time so that the scores are not affected too much.
-10% Mix of Credit. Use different types of credit (revolving; installment; auto; mortgage...) evenly.
Also remember the advice which a lender gives you is productive for getting a loan; but not always good for the credit scores. If they tell you to consolidate and close accounts be careful how you go about this, most people's compliance usually results in dropped credit scores. You are shrinking your overall available credit limit verses your balances... so remember you don't want to hurt the utilization by consolidating and closing accounts behind you.
What types of information are NOT used in calculating my FICO score?
1. Your race, color, religion, national origin, sex or marital status
2. Your age
3. Your salary, occupation, title, employer, date employed or employment history
4. Where you live
5. Certain types of inquiries such as promotional, account review, insurance or employment related inquiries
6. Any information not found in your credit file
7. Any information that is not proven to be a predictive of future credit performance
-- from http://ficoforums.myfico.com/
If you're ready to explore your options for purchasing a home -- whether you do so with conventional mortgage lending, or through seller financing, or Rent to Own -- Happy Home Solutions can help. Call or Text Adam at 630-697-4500. We always have Rent to Own homes available!
-35% Payment History. Meaning any lates; collections; charge offs; bankruptcies; judgments; liens or the such will hurt the score. All is time based, the older the information the less it is contributing to the scores.
-30% Utilization. It is better to have several accounts with low balances distributed then it is to have fewer accounts maxed out. To figure utilization: Balance (divided) by Credit Limit = percentage. Lower than 10% recommended per account, this is one of the fastest means for increasing the over all credit score.
-15% Established History. The longer you maintain open accounts with creditors the better. When first starting out of course this is not easy; but this is where getting added as an Authorized User to another persons established credit comes in best. Remember that the contributor must have an account that has long history; clean payment record; high credit limit; and low balance. Also need to check with the creditor to insure that they have a policy to report authorized user accounts to all three major credit reporting agencies.
Note: Authorized user accounts are the best way to go; since you are not legally responsible for the debt rather than Joint or Co-Signer accounts. Also, if this account starts to report negatively; these accounts are usually easier to remove from the credit reports by either contacting the creditor and requesting termination of the relationship; or disputing through the CRAs.
Update: In its original form, FICO 08 would not use AU accounts in scoring. It has been modified: FICO 08 now WILL continue to count legitimate AU accounts. As of the end of 2008, the EX version of FICO 08 is only being used by a few lenders.
-10% Inquiries. Don't apply for credit unless you know you can get it or that you need to get it; unnecessary credit inquiries are going to hurt the scores - especially if your over all credit file is small to begin with.
Tip: When applying for credit pull your own credit report first (this is a soft hit and won't drop your scores). With credit report in hand go visit your local banks or credit unions. Show them the reports; and don't allow them to pull a credit report of their own unless they can say for sure that you will be approved, this way you save your self unnecessary pulls on your credit report if they decline you.
If they say yes, you are approved, then they will need to pull credit report to seal the deal.
Mortgage & Auto industry has special rules for inquiries: all applications for credit resulting in pulled credit reports within a 14 day period of time will only count as one inquiry & will be suppressed from affecting credit scores for 30 days.
So if you plan to go shopping for a mortgage or a car, do your research first picking what companies you want to apply with and do this all within a 2 week period of time so that the scores are not affected too much.
-10% Mix of Credit. Use different types of credit (revolving; installment; auto; mortgage...) evenly.
Also remember the advice which a lender gives you is productive for getting a loan; but not always good for the credit scores. If they tell you to consolidate and close accounts be careful how you go about this, most people's compliance usually results in dropped credit scores. You are shrinking your overall available credit limit verses your balances... so remember you don't want to hurt the utilization by consolidating and closing accounts behind you.
What types of information are NOT used in calculating my FICO score?
1. Your race, color, religion, national origin, sex or marital status
2. Your age
3. Your salary, occupation, title, employer, date employed or employment history
4. Where you live
5. Certain types of inquiries such as promotional, account review, insurance or employment related inquiries
6. Any information not found in your credit file
7. Any information that is not proven to be a predictive of future credit performance
-- from http://ficoforums.myfico.com/
If you're ready to explore your options for purchasing a home -- whether you do so with conventional mortgage lending, or through seller financing, or Rent to Own -- Happy Home Solutions can help. Call or Text Adam at 630-697-4500. We always have Rent to Own homes available!
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