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What is a credit report and why is it important? A credit report is the single quickest way for banks, creditors and even employers to learn about your financial behaviors.Your credit is assigned a score, ranging from 350-850, which offers a baseline estimate of a consumer’s willingness and ability to repay a debt based on previous history. To receive the best loan terms possible, aim for a credit score of 740 or better.Credit scores are tracked by three companies: Experian, Equifax and TransUnion, and scores are determined by a variety of factors:35% is determined by your payment history30% by the amounts you owe and how much of your credit line is in use15% by the length of your credit history (how long you’ve had accounts)10% of your score is based on new credit and the number of recent new accounts10% is determined by other variables.Here are five easy steps to managing your credit:Less is more: Don’t apply for store credit just to get the 10% off. Frequent credit inquiries and numerous revolving lines of credit (credit cards) will lower your score.Know thyself: Pull a copy of your report at least annually for free from annualcreditreport.com to check for inaccuracies and address them as soon as possible to minimize their impact on your score.Pay your bills on time: Pay the full amount due on secured loans each month. If you can’t pay the full amount due on secured loans, request to make an interest-only payment until you can make the full payment.Play the percentages: Credit card balances below 50 percent of the credit line is good, but 30 percent is better.Protect your identity: Keep your good credit score intact by shredding all unnecessary financial information. Protect online accounts with challenging passwords and be cautious when giving out your SSN as an identifier (for example on medical billing).Put these guidelines into play and you’ll benefit from having good credit. -
News You Can Use
This weekend the Charlotte Observer reported that Simonini Builders is proceeding with spec homes in three high-end neighborhoods. As the article mentioned, increased interest in home purchases lines up with the activity we’re seeing in our office. Hopefully the recent rebound in Charlotte’s home market will continue as first-time and move-up buyers try to purchase a home in time to get a tax credit.
With most mortgage programs requiring a minimum credit score of 620, some prospective homebuyers are nervous about getting preapproved because they’re unsure of what their credit report may contain. My advice for these clients is that the smartest strategy is to proceed with the preapproval so we can review their report together for understanding and clarification. If necessary, we can then develop a plan to get them in the position to buy a home. Hoping derogatory credit information goes away often doesn’t work but credit knowledge and efficient actions will!
My main operation base is our SouthPark office but like many of you I have times when I’m on the go – to a closing or an appointment – and it’s important that my office is a mobile one. I thought these ten tips for those of us on the go were useful reminders about mobile offices’ best practices and worthy of sharing.
The first half of the week looks to be exciting in the world of mortgage rates. We have a report tomorrow on retail sales and then Fed Chairman Ben Bernanke will speak at noon. Then Wednesday will bring October’s Consumer Price Index report. In the latter part of the week the bond market will likely take its lead from the stock market’s performance.
Featured Loan Program
Jumbo ARMs
Cunningham & Company offers below market rates on Jumbo ARM loans.
- Owner Occupied or Second Home
- 3/1, 5/1, 7/1 and 10/1 ARMs available – Fully amortizing or Interest Only
- Minimum credit score of 700
- 30 and 40 Terms available
- 75% max Loan to Value
Have You Heard?
Have you heard about Charlotte’s Organica Deluxe – an eco-friendly online boutique? If you haven’t, there’s an opportunity to check out what they’re all about at their Pop-Up-Shop at Phillips Place. Best part – you can support a local business while finishing (or starting) your holiday shopping!
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