Going From Fair Credit To Good Credit

Maybe you have fair credit today, but that need not be a permanent condition.  Your credit standing can change, and it can change with some speed. The pioneering FICO-brand credit scoring system uses five factors to rate your financial standing. Each factor has a certain “weight” on your credit score.

• Credit history (35 percent)
• Amount owed on credit (30 percent)
• Length of credit history (15 percent)
• New credit (10 percent)
• Credit mix (10 percent)

These categories suggest three quick steps you can take to get better credit.

• Do not open new accounts. When a retailer offers $10 off if you will use their credit card, you’re being asked to open a new line of credit. Don’t be tricked. Since new accounts hold down credit scores, you’re better off paying the $10.
• Credit history is important, but most important of all is recent credit history — what you’ve done in the past few months.
• Make a point to pay all bills in full and on time. This is not only good for your credit standing, but will also end costly and unnecessary late payment penalties.
• Third, review your credit report. A 2013 study by the Federal Trade Commission found that “five percent of consumers had errors on one of their three major credit reporting services. How big an error? — enough to change an individual’s credit standing.
• The easiest and fastest strategy is paying off revolving accounts, like credit cards, or paying the balances down, can have dramatic impact and quickly raise scores.
• Turbo Mortgage features a “rapid rescore” feature that can impact your scores within a few days, and accurately predict how many points your score will raise by applying these strategies.
• Ask your Turbo Mortgage loan officer about “RAPID RESCORE”.