Renee Prunier


Posted by Renee Prunier on 9/10/2018

When you want to buy a home, you know that good credit will be necessary. You may have heard some things about your credit score that just arenít true. Read on to set the record straight on some of the most significant misconceptions about credit. 


Checking Your Credit Only Gives You Knowledge


Checking your credit score or report will not lower your score. The only way checking a score is damaging to a credit score is in the form of credit inquiries. This is when a lender, employer, or other merchant checks your credit in order for you to either gain employment or open a new line of credit. You have the right to review your score without it being impacted. 


You Shouldnít Carry Balances


The best way to keep a high credit score is to use a credit card and pay the balance off in full each month. Itís a false belief that carrying a balance is an excellent way to increase your credit score. You need a low debt level to maintain a good credit score. 


Your Age And Income Have Nothing To Do With Your Score


Itís natural that older people who have a longer credit history have a better shot a good credit score, but your age has nothing to do with your score. It all depends on when you established credit. Some people started their credit histories early because their parents opened accounts for them. Others needed to wait awhile before opening their first credit card account. 


Your income also is not a factor in determining your credit score. It may be true that if you have a higher income, itís easier to stay out of debt, but the amount of money you make has no direct impact on your score. 


You Cannot Access Your Credit Score For Free


You have a legal right to obtain a free copy of your credit report once a year but, your credit score isn't included in this report. There are free services that are outside of your credit report that will give you your credit rating, but you need to search for them. Itís a good idea to check your credit report periodically, but you should also know your score especially if you're getting ready to make a big purchase such as buying a home.


Your Credit Matters More Than You Think


While you know your credit score matters when you head to get a home loan, you may not know just how many entities take your credit into account when you apply for them. Some things you may do where your credit score matters:


Apply for a job

Apply for a credit card

Rent an apartment

Sign up for phone and Internet services

Get other utilities in your home


Your credit history gives a picture to the world to let them know if youíre financially stressed. If you have gone through rough patches, there are always ways to bring your score up. If you had a judgment ruled against you in a lawsuit, for example, that would only appear on your credit report for a certain number of years. Lenders will often allow you to explain bumps in your credit report as well. Understanding credit is half the battle to a good score!      




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Posted by Renee Prunier on 5/21/2018

One of the most important factors that many home buyers face is that of their credit score. You have the right to get one free credit report per year. There are also many different apps and websites that keep you updated on your credit score and any changes in your credit report. These programs even guide you in how to improve your score. 


Why Do We Have Credit Scores? 


A credit score is a number that shows how creditworthy a person is. Lenders look at this score in order to assess how risky a person may be to lend to. This lessens the potential risks that the lender may face, keeping people who may be at high risk for defaulting from securing a loan in the first place. 


Whatís A Good Score?


Credit scores range from 300 to 850, with 850 being the highest score that you can get. A credit score of 700 or above is considered good. A credit score above 800 is seen as excellent. The bottom line is that the better your credit score is, the more reliable of a borrower you will be seen as by lenders. 


If your credit score is less than stellar, however, you need to get to work so that you will be able to get loans in the near future. Hereís some steps that you can take to improve your credit:


Pay Off Outstanding Debt 


If you owe anything on medical collection accounts, credit cards, legal judgements; basically any debt that will show up on your credit report, you need to pay these off. Getting rid of debt can help you to increase your credit score more quickly. 


Rebuild Your Credit


Youíll need to keep up any accounts that you have with good payment history and maintain the good work. You should be diligent to maintain those on-time payments for an increased good payment history. Even if you have accounts that have had late payments previously, you can still work to get the accounts back in good order. 


If you donít happen to have any existing credit accounts, youíll need to get one in order to begin establishing credit. A good way to do this is to apply for a credit card and only charge what you can afford each month in order to help establish a credit history.     

Look At Your Whole Financial Picture


Aside from your credit score, youíll need to take a look at your bigger financial picture. Everything from the amount of savings that you have available to how much of a home youíll be able to afford is important. You need sufficient income so that youíll be able to buy a home and provide a down payment along with money to pay closing costs. 


Once you start investigating your credit score and how to improve it, youíll be on your way to better financial health.





Posted by Renee Prunier on 3/5/2018

If you are thinking of buying a home in the near future, thereís one three-digit number that could be oh so important to you. That number is your credit score. Read on to find out how a credit score can affect you and the steps you can take to be sure that your credit is in good standing when you head to apply for a mortgage. 


What Is A Credit Score?


Your credit score is checked by lenders of all kinds. Every time you apply for a loan or a credit card, thereís a good chance that your credit score is being pulled to see if you qualify for the loan. Your credit score is calculated based on the information on your credit report. This information includes:


Payment history

Debt-to-credit ratio

Length of credit history

New credit accounts opened


The areas with the most impact on your score is your payment history and your debt-to-credit ratio. This means that on-time payments are super important. You also donít want to get anywhere close to maxing out your credit cards or loan amounts to keep your score up. 


Whatís A Good Score?


If youíre aiming for the perfect credit score, itís 850. Most consumers wonít reach that state of perfection. Thatís, OK because you donít have to be perfect to buy a house. If your score is 740 and above, know that youíre in great shape to get a mortgage. Even if your score is below 740 but around 700 or above, youíll be able to get a good interest rate on your mortgage. Most lenders typically look for a score of 620 and above. Keep in mind that the higher your credit score the better your interest rate will be.    



What If You Lack Credit History?


Most people should get a credit card around age 20 in order to begin building credit. You can still qualify for a mortgage without a credit history, but it will be considerably harder. Lenders may look at things like your rent payments or car payments. Lenders want to know that youíre a responsible person to lend to. 


What If Your Score Needs Help?


It doesnít mean youíre a hopeless case if you lack good credit. Everything from errors on your credit report to missed payments can be fixed. The most important thing that you can do if youíre buying a home in the near future is to be mindful of your credit. Keep an eye on your credit report and continue to make timely payments. With a bit of focus, youíll be well on your way to securing a mortgage for the home of your dreams.        






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Posted by Renee Prunier on 4/3/2017

Did you know that you could drastically improve your credit score in just a year? Or that there are things that you can actively be doing to keep up your good credit score and make it to excellent? Improving your credit score involves improving many pieces of what makes up a credit score. The tips here are twofold. If your score is low and you are looking to greatly improve it, then you must first figure out why. Review the tips below to see if any listed can help you deal with your credit pitfall(s). If you have an average to good score and just want to improve it as much as possible then each of the steps below can give you insight into how to do so. Balances: The amount of revolving credit you have compared to the credit that you are using is a large factor in your credit score. Itís best to keep your balances from all of your credit cards under 30% of your revolving credit. Even if you pay off your credit cards every month, the amount of credit you are utilizing is recorded. In short, keep balances low, but also keep paying them off each month so you do not end up with a balance than canít be immediately paid off. Credit Inquiries: Hard credit inquiries show up on your report for 2 years, but only affecting your score for around a year. Hard inquiries show that you are looking to use additional credit and too many hard inquiries in a short amount of time can negatively affect your credit score. One or two within a yearís time will not significantly affect your score but as that number gets higher it will. One way around this is to make those couple of inquiries within a 30-day period. FICO will count those inquiries as one since oftentimes multiple inquiries in a short period of time results in one loanó meaning you are not in search of multiple lines of credit/loans. But itís best to be cognizant of this and strategic in how you view your credit report or apply for loans and credit cards. Payment History/On-Time Payments: If you have struggled with paying your bills on time and have seen a suffering credit score then this then would be a main reason behind your low score. And itís time to take action and change that. This is one of the main factors in your credit score and therefore significantly impacting your score, either negatively or positively. Itís important to do everything in your power to pay all bills on time. Even being just a couple days late on payments will have affect. Length of Credit History: Length of credit is not necessary something that you can completely control. But it does have an affect on your credit score. As the length of your credit increases, and given that you are responsible with your credit, your score will improve. The most important piece to remember here is to be responsible with your credit. So what are you waiting for? If you haven't already, sign up for a free credit score site or find out if one of your credit card companies offers it. Frequently checking and seeing your score rise will provide you with the gratification you need to keep on track.





Posted by Renee Prunier on 11/17/2014

Credit cards can be a great source of safety and †convenience but they can also be trouble. Buy now and pay later can have serious consequences and lead to financial trouble. So in order to stay financially fit it is important to use your credit cards wisely. Here are a few tips to help you make the most of your credit cards: ē This seems simple but pay off your balance every month in full. †Interest charges on your credit card purchases can add up fast. ē If you do carry a balance, pay back as much as you can as quickly as possible. You don't have to wait until the payment due date. ē Avoid using your credit card to withdraw cash or transfer money. Interest is charged on these transactions immediately. ē If you are considering a card with an annual fee, be sure that whatever reward or benefit you're getting is worth the cost. Bottom line stay within your budget. Only use credit cards for things you can afford. If you can't afford it don't buy it. You will be much happier without the new sweater when you have enough money to buy a new home.