The Facts About Your Credit Score

The Facts About Your Credit Score 

Credit scores have become one of the most important numbers you have and many fail to realize what all it encompasses. Below is some background of what goes into your credit score calculations and how they can be improved for future borrowing opportunities. The minimum credit score required for a FHA/Conventional mortgage loan is 620 - scores of 740 and higher obtain the best rates!

Ways to improve your credit now

* Review your credit report once a year

* Report any errors that are found

          * You are now able to submit a complaint online

* Reduce amount of debt owed

          * Use Cards lightly - limit charges to 30% or less of cards limit

          * Do not have to wait till the end of the month to pay off all bills at once!

How Credit Scores are calculated 

 How long does negative information stay on your credit report 

If you have had... It will stay on your credit report...
Late payments 7 years
Judgements 7 years
A short sale 7 years
A foreclosure 7 years
Chapter 13 bankruptcy 7 years (from filing date)
Tax liens Until lien is paid in full, plus 7 years (though they may remain indefinitely)
Chapter 7 bankruptcy 10 years (from filing date)

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