Volunteer!
Hi, before I get to the FICO stuff, I want to mention a great experience today. I want to encourage everyone to get out and voluteer for a cause. Any cause, especially if you have one dear to your heart. Today along with my 10 year old son, we volunteered at Back To School Clothing Drive Association. Every year this wonderful organization collects donations from corporate sponsors and individuals to help underprivileged kids get a start on the school year. Children that come to this are able to get new clothes, including pants, socks, underwear, sweatshirts and shoes, along with a backpack stocked with school supplies. Items like this help a student start off on the right track for a good year of learning. I am especially proud of my son, as I feel kids helping kids is the best thing of all. Thanks, Adam
Now for the helpful hints. More factors that affect your credit score.
Length of your credit history: how is it established? (Approx. 15%) In general a more seasoned credit history will increase your FICO score. Lenders want to see that you can responsibly manage your credit accounts over time. However, even those people who have not used credit for an extended period of time may get high scores, depending on how the other information in the credit report appears.
New Credit: are you taking on more debt? 10% Opening several credit accounts in a short period of time can represent a greater risk, especially for those with newer credit histories. According to Fair Isaac Corporation, FICO scores try to distinguish between an attempt to obtain many new credit accounts and an attempt to obtain the best interest rate. FICO scores generally do not associate higher risk with shopping for the best rate.
Last but not least, do you have a healthy mix of credit? 10%. Your FICO score will reflect your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans, etc. While a healthy mix will improve your score, it's not necessary to have one of each, and it's not a good idea to open accounts you don't intend to use. The source of this information is Wells Fargo.
Thanks, More tomorrow.
Adam Tarr and Sharon Kotula
Your Phoenix area real estate source