RSSBest practices to improve credit scores (Part 1)
December 7th, 2011 by admin | Filed under Good Credit Scores.
Q: Coud you speak a little bit about best practices to improve your credit score? Emmanuel: Absolutely. One of the things you wanna do is you wanna minimize your ratios on your revolving debt. That would be your credit cards things like that. I tell people around 30-35% are usually good ratio from the credit limit to what the actual balance is. Now, the thing you wanna do, do not payoff collections unless that collection can be deleted from your account. The analogy I give people is, if you have an old injury that old injury you’ve learned to leave with. But if you decide to go have surgery on that old injury, guess what, you’re gonna have short term paying from having that surgery. Long term, yes, it’s better for you but in the short term, just typically why you have a conversation with me because you want to get that purchase of refinance your property. It’s bad for you. So we stay away with collections unless they can be deleted. I have a lot mortgage brokers tell some of my clients in the years afterwards. They’ve gotten paid the collections. I understand why their credit scores went down as opposed to going up because they’re doing the right thing. It hurts your credit score on the short term.
Tags: bank, Choice, collections, Credit card, credit scores, mortgage, Mtg, property, refinance