Getting The Credit You Deserve
Getting The Credit You Deserve By Gabriel B. Avalos, Trusted
Advisor
Tip #1: Know your score
People like you and me applying for a mortgage or a car loan are
nothing but a "number." A credit score in other words. And even
though you may be a fine citizen and pay just about every bill
on time, the Fair Isaac algorithm for predicting credit failure
may "mark" you as a poor risk using its predictive analysis.
Even if you have paid your bills on time for many years, and
someone else has claimed bankruptcy in the past three years, the
"bankrupt" person may be the one to get the credit! It's not
fair; but to understand the system you must learn some basics.
Tip #2: Get a FREE copy of your credit report
You don't have to pay anyone for a copy of your credit report!
This central site allows you to instantly receive a free credit
file disclosure, commonly called a credit report, once every 12
months from each of the nationwide consumer credit reporting
companies: Equifax, Experian and TransUnion. Visit them today at
www.annualcreditreport.com.
Tip #3: Just the past 18 months count the most
In today's credit lending environment, lenders are not looking
at the past seven years like before but rather are looking at
the last 18 months. This could be good news or this could be bad
news... If most of your mistakes are in the past, previous to
the 18-month cut off, then it's easier to qualify for credit.
But if you have had a great payment history for the last
5-years, then missed a few payments in recent months, and have
had a few other mistakes, its going to cost you dearly in
getting the best rates, or even approved for that new loan. It
is important for you to know that the past 18-months are what
count the most.
Tip #4: Know your "Middle" score
More and more these days, lenders are using third party credit
reporting agencies that take all three of your credit reports,
merge them into one, and highlight your "middle score." For
example, if you have a 680 score on Equifax, a 720 score with
TransUnion, and a 620 credit score with Experian, then 680 would
be the credit score given the most attention. Most lenders look
at your middle score and determine your credit risk based on
that score. 620 is the cut off for being a "good" credit risk,
everything below 620 has a higher risk rating and may or may not
be approved for a loan. The higher the risk, the higher the
interest rate.
Tip #5: Boost your credit score
Your credit score can range from 300-850. Lenders will give you
a home loan or auto loan with a score of 500 and up. However,
the "magic" score is considered to be 720. With a credit score
above 700 the ability to get the most creative financing
available is at your finger tips. Want those car loans with zero
percent interest? Have a 720 credit rating. If you don't have a
720 credit score, try for 660. A 660 credit score still is good
enough to qualify for most loans, including a "no-income
verification" loan, something highly sought after by
self-employed people.
For more information, please contact Gabriel Avalos directly @
206.423.6733 or online at www.teamavalos.com.