Hands On The Heartland
Checking The Pulse Of The Kansas City Real Estate Market

For many consumers there’s a pride factor that comes with having an 800+ credit score. In reality though, an 830 credit score is really no better than a 760 credit score. Once a borrower has achieved a 760+ credit score, lenders consider the borrower to be an “A” borrower and worthy of the best available loan rates and borrowing privileges. Of course having an 800+ credit score could allow for a future blip on one’s credit report while still remaining in the top credit tier. Exactly how to obtain a top credit score has been debated but the basis of a FICO credit score has been made clear and most agree that having a lengthy credit history and showing clear ability to repay debts are vital.

Although there may not be a precise manual for improving your credit score, history has shown the following suggestions to be an excellent starting point. Avoid maxing out a credit card because doing so could indicate a borrower has left himself/herself with little financial wiggle room. Additionally, having both secured debt (i.e. car loan) and unsecured debt (i.e. credit cards) can shoot a credit score higher.  Be sure to check your credit report at least once a year and dispute any illegitimate items that may appear on the report. If there’s a legitimate derogatory item on the report, get to work clearing up the item.  

Try to avoid closing out old revolving credit lines. If you have a Dillard’s card with a zero balance that you haven’t used in years, keep it open. This shows you have the ability to charge more but have neither the need or willingness to do so. This is great indication that a borrower is capable of paying back future debt. On the other hand, don’t open up new credit cards in the hopes of seeing a quick bump in your credit score. Doing so could backfire on you and this is not the same as unused “aged” credit. Over time though, additional credit could help – assuming the credit hasn’t been maxed out.

Posted by Jason A. Brown

Comments Can Be Left Below…
Don’t see the LEAVE A COMMENT section below? 
First click on the headline at the top of this blog post.