Category: Credit Score Tips

  • Credit Card Balances and Credit Score

    Credit Card Balances and Credit Score

    One of the most important factors in determining credit scores is utilization. And by utilization, I mean the amount of credit you are using versus that which is available. For example, if you’ve got a credit card with a $10,000 credit limit, and a credit card balance of $5,000, you’d be utilizing 50%. While this…

  • Foreclosure vs. Short Sale on Credit Score

    Foreclosure vs. Short Sale on Credit Score

    If you’re having difficulty keeping up with mortgage payments, you may be wondering about the impact of a foreclosure vs. a short sale on your credit score. Well, first thing first, neither is welcome news for your credit score. Both are deemed major derogatory events, and will lower your credit score tremendously. Not only that,…

  • What Does Your Credit Score Mean?

    What Does Your Credit Score Mean?

    Credit score Q&A: “What does your credit score mean?” Put simply, a credit score summarizes and represents your credit history in numerical form. And your credit history measures the likelihood that you will become delinquent on a credit line in the future, which is the main issue prospective creditors are concerned about (because it costs…

  • FHA Minimum Credit Score

    FHA Minimum Credit Score

    Recently, the FHA imposed a “minimum credit score” for FHA loans after sustaining serious losses during the latest housing crisis. In short, those with credit scores below 500 will no longer be able to qualify for an FHA loan. Period. End of story. And only borrowers with credit scores of 580 and above will be…

  • What Credit Score Do You Need for a Mortgage?

    What Credit Score Do You Need for a Mortgage?

    Credit score Q&A: “What credit score do you need for a mortgage?” This is a more complicated question than it appears. You can’t just say, “Oh, you need an 800 credit score.” Or, “As long as you have a 700 credit score you’re fine.” Mortgages are complicated business, and because they’re offered from so many…

  • Annual Credit Score?

    Annual Credit Score?

    Think again. There is no “annual credit score.” Just an annual credit report furnished by the three major credit reporting agencies. They’re each willing to let you plant your eyes on a credit report for free once annually, but that’s about as far as they’ll go. If you want to see your credit score too,…

  • Does Checking Your Credit Score Lower It?

    Does Checking Your Credit Score Lower It?

    Credit scores are all the rage these days. It seems like it’s impossible to avoid seeing an advertisement for a “free credit score,” or hearing that silly band talk about how they couldn’t get a job/loan/girlfriend because their credit score was low. So we know the advertising is working, but these ads do little to…

  • Does Closing a Credit Card Affect Your Credit Score?

    Does Closing a Credit Card Affect Your Credit Score?

    Nowadays, consumers seem to think it’s a major no-no to close a credit card. Why? Because it may affect your credit score. And by affect, I mean lower your credit score. But this all seems to have been blown out of proportion. The reality is that you can and should close a credit card account…