Credit DO's and DON'Ts

1. Definition of Credit- Predictive analysis of future default rate.

2. Online free reporting systems use a range of 500-990

3. Actual reporting agencies use range of 300-850

4. Two most important factors in your FICO:

35% Payment History

30% Amounts Owed

15% Length of the account

10% New Credit

10% Types of Credit

5. Amount and types of recommended debt you should carry:

2-3 credit cards

Auto Loan

Mortgage

6. Best advice to pay down accounts that are near limit is to go in 20% increments.

7. It’s best to pay it down to 19% of the limit. That way you are carrying some debt but in the lowest bracket. 5%-7% to fully maximize your credit score.

8. Paying off a debt completely or closing an old debt that you have had for a long time can hurt your score. Try and use that old car you’ve had every 6 months or so. OLD ACCOUNTS ARE GOOD!!

9. If you can’t afford to pay a card down, try calling them and ask about raising the limit on it. That can increase your score, as you will no longer be maxed out. That doesn’t mean you can go spend more though!

10. Most Creditors will update/upload information to the bureaus between the 5th and 10th of the month. Which is why, if you make a change, it can sometime take 30-45 days to report.

11. Do not pay the 3rd party collection companies the amount owed for the collection, pay the original creditor and ask for a “pay for delete” that will remove it. 

12. Never dispute online; it’s a waste of time. It will show back up in couple months. It’s a quick fix, not a long term solution.

If you have any questions about credit or credit reports or if you would like a free credit consultation, message or email me at michael@risingpointsolutions.com. Better yet, you can contact me directly at 727-835-8416.

“You don’t have to have debt to have good credit, but you do have to have credit to have credit!”

http://www.risingpointsolutions.com/blog/credit-dos-and-donts