Rebecca is one smart cookie! You can read more of her great advice on her blog at this link
Understanding your credit score
Smart moms know that managing your credit is a savvy move. A credit report is the single quickest way for banks, creditors and even employers to learn about your financial behaviors. As such it is important to understand how credit scoring works.
Credit scores are tracked by three companies: Experian, Equifax and TransUnion, and scores are determined by a variety of factors. 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.
Consider these 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).
Want a great credit score? Put these guidelines into play and you’ll enjoy all the financial benefits.
About The Mortgage Mama
Rebecca Madej, a Charlotte native and graduate of the University of North Carolina at Chapel Hill, has established herself as a trusted expert in the mortgage industry. The recipient of two Cunningham & Company President's Circle awards, she was named a Five Star professional by Charlotte Magazine in 2009 & 2010.
Madej works with clients to minimize their monthly payments, maximize their equity and weigh the financial advantages of their mortgage. She excels at demystifying the financial process in a personal setting, through a weekly "Monday Money Matters" e-newsletter and on her blog at rebeccamadej.com.
