RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

6 Good Credit Habits for Buyers and Renters

July 1, 2015 2:18 am

Your credit score has a critical impact on your housing options, and healthy credit is essential to buying a home or renting one. “An important step to finding a home, whether you’re renting or buying, is ensuring that you have a good credit history,” says Frank Keating, president and CEO of the American Bankers Association (ABA). “A strong credit score can open doors to better homes and lower mortgage rates.”

To build a good credit history, the ABA recommends adopting these habits.

1. Request a copy of your credit report–and make sure it is correct.
Your credit report illustrates your credit performance, and it needs to be accurate so that you can apply for other loans, such as a mortgage. Everyone is entitled to receive a free copy of his or her credit report annually from each of the three credit reporting agencies, but you must go through the Federal Trade Commission’s website at www.AnnualCreditReport.com or call 1-877-322-82281-877-322-8228 FREE. Note that you may have to pay for the numerical score itself.

2. Set up automatic bill pay.
Payment history makes up 32 percent of your VantageScore credit score and 35 percent of your FICO credit score. The more you pay your bills on time, the better your score. Avoid missed payments by setting as many of your bills to automatic pay as possible.

3. Keep balances low on credit cards and ‘revolving credit.’
Racking up big balances can hurt your scores, regardless of whether you pay your bills in full each month. You often can increase your scores by limiting your charges to 30 percent or less of a card's limit.

4. Apply for and open new credit accounts only as needed.
Keep this in mind the next time a retailer offers you 10 percent off if you open an account. If you need a new line of credit, don’t jump at the first appealing offer; compare rates and fees offered through mail solicitation, on the Internet or at your local bank.

5. Don’t close old paid off accounts.
According to FICO, closing accounts can never help your score and can in fact damage it.

6. Talk to credit counselors if you’re in trouble.
Using legitimate, non-profit credit counseling can help you manage your debt and won’t hurt your credit score. For more information on debt management, contact the National Foundation for Consumer Credit by visiting www.NFCC.org.

Source: ABA.com

Published with permission from RISMedia.


Tags:

Losing Sleep? It's Not Your Mortgage

June 30, 2015 2:18 am

A select group of Americans are getting a better night’s sleep as the economy strengthens, a recent CreditCards.com survey reports. According to the survey, Americans age 65 and older are sleeping more soundly than succeeding generations due to minimal stress over finances. A percentage of Americans, however, do experience some level of sleeplessness over finances.

The most common concern leading to sleepless nights is retirement savings, followed by educational expenses and healthcare and insurance bills. Mortgage and rent payments and credit card debt are less distressing than in previous years, the survey reveals.

"The biggest change over the past eight years has been the steady increase in the number of people losing sleep over educational expenses," says CreditCards.com Senior Industry Analyst Matt Schulz. "That's the only one of the five categories that has gotten worse since the Great Recession. Unless something slows the rapid rise in college costs, this could soon be Americans' biggest financial fear."

Predictably, those with an annual household income of $75,000 lost sleep over at least one of these issues far less than those with an annual household income below $75,000.

Source: CreditCards.com

Published with permission from RISMedia.


Tags: