Monthly archive for September 2017

How Building and Maintaining a Good Credit Score Helps You in the Long Run!

How Building and Maintaining a Good Credit Score Helps You in the Long Run!

When it comes to the term “credit score,” people are usually hesitant and reluctant to listen any further. It’s the term that will follow us everywhere we go, but we don’t want it to. In fact, 80% of Americans instantly develop anxiety the moment they hear anything pertaining to “credit.”Unless someone is applying for a mortgage loan or trying to purchase a new car, no one really likes to continue the conversation about the importance of one’s credit score, and why creating and maintaining a healthy score is important.

However, there’s no doubt that an individual’s credit score can and certainly will affect them in different aspects of life. For example, your credit score determines the type of vehicle you can drive, how high your mortgage will be, and what types of personal loans are available to you. Sounds a bit overwhelming, doesn’t it?  With the proper financial guidance and tools, building a healthy credit score doesn’t have to be overwhelming. In fact, it’s easier than you think.

Some of the easiest ways to build and maintain a healthy credit score are to make payments on time, use your credit card regularly,  try to keep your credit lines open as long as possible, keep your debt low, and make sure that you open credit lines gradually.  Building and improving credit isn’t an overnight process; it takes time and effort. Be sure to practice patience as you wait to see the fruits of your labor.  It will be worth it!

Additionally, it’s  also important to understand what affects one’s FICO score before applying for a credit card:

  • 35% – The biggest factor or slice of the FICO score is the ability to make payments on time. Utilize a calendar or online banking to ensure payments are made on time.
  • 30% –  Keep your debt balances below this percentage in relation to your credit limit per line.
  • 15% – is the length of your credit history, which is important, because lenders are comfortable measuring your ability to stay current on payments.
  • 10% – a diverse line of credit (car loan, mortgage, credit card, etc.) accounts for 10% since more credit lines are better than just one.
  • 10% – this final percentage accounts for the gradual addition of new credit lines. In layman’s terms, avoid applying for too many lines of credit all at once. This will bring your score down.  Tip:  Try to space applying for different lines of credit out over time to avoid negatively impacting your credit score.

 

With the aforementioned tips and information, continuing the conversation about credit should be less anxiety-inducing.  There are great advantages to having and maintaining a healthy credit score!

Taking Control Of Your Finances

Taking Control Of Your Finances

Reality: we are living longer and expenses are increasing.

*Are you 62 or older?
*Are you still making mortgage payments?
*Are you worried about running out of money?
*Are you in need of additional tax-free money?

Call us to find out how we can give you the retirement you deserve.
Take control now!

Location

Headquarters
614 Old Edmondson Ave., Suite 200
Catonsville, MD 21228-3360
Toll Free:
1-800-420-5515

Maryland Office:
410-788-7070

Eastern Shore Office:
410-600-0600

District of Columbia:
202-719-0625

Virginia:
703-879-2316

Licenses

NMLS # 179014
www.nmlsconsumeraccess.org

Maryland - Lender # 06-20057

District of Columbia - Mortgage Broker # MLB179014

Virginia - Licensed by the VA State Corp. Commission, Mortgage Broker # MC5642

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