A strong credit profile can help you qualify for credit at the lowest rates
possible. Yet, consumers often wait until they need credit to think about their
credit situation. In fact, 62 percent of people have not reviewed their report
in the past year, according to a recent National Foundation for Credit
Understanding how to build credit and how to use
it responsibly helps consumers make decisions that lead to financial success.
And making responsible decisions that can help you chart a path toward a
successful financial future is easier when you're well informed. Free tools
from sources such as the American Bankers Association, National Foundation for
Credit Counseling and Wells Fargo's free, online Hands on Banking program can
help consumers of all ages increase their credit know-how. These five tips can help
you take control of your finances, manage your money and build a stronger
Five steps to strong credit
1. Check your credit report: Once a year,
consumers can request a free credit report from each of the three major credit
reporting agencies - Equifax, Experian and Transunion - at
AnnualCreditReport.com or call 877-322-8228. Review the reports carefully and
correct any errors.
2. Understand the factors that affect your
credit: Whether you are new to credit or have been using credit for some time,
your credit score gives lenders a snapshot of your credit risk. By
understanding what impacts your score, you may be able to improve it.
3. Raise your credit score: Managing your credit
responsibly over time is one of the best ways to build, maintain, and improve
your credit score. Five key criteria are generally used to calculate a
consumer's credit score:
Payment history: Information
about whether you've made on-time payments has the most impact on your
Credit accounts: A balanced mix
of different types of credit can help improve your score.
Credit usage: Owing a lot or
being near your credit limit on multiple accounts negatively impacts your
Length of credit history:
Reviewers check to see if you can responsibly manage credit accounts over
Credit applications: Opening
multiple new credit accounts may represent a greater risk for lenders.
Create and monitor your budget: A budget gives you more control over your
finances and helps you eliminate unnecessary expenses.
5. Know what lenders look for. When consumers
apply for a loan, lenders assess their credit risk based on a number of
factors, often called the Five Cs of Credit:
Credit history. Have you
established credit and is your credit score high enough to qualify you?
Capacity. Is your income
Collateral. Does the collateral
you're borrowing against have enough value?
Capital. Do you have assets set
aside as another source for repayment?
Conditions. Does the current
economy or purpose for the credit make it a risk?
Wells Fargo offers a variety of free tools
designed to help individuals at any life stage learn ways to manage their
finances more responsibly. For more information and resources about how to use
credit sensibly to achieve financial goals, visit www.wellsfargo.com/creditsmart. Curious what your home is worth? Use our
FREE online valuation tool Click
Karen Venier is a Broker Associate at Keller Williams. She is a part of Carr
Peck Group which has been recognized locally and nationally as in expert in
real estate. Locally they are 6th in Denver Metro home sales out of
5,000 agents and have been recognized by the Wall Street Journal and Real
Trends as one of the top selling agents in America. For more information
feel free to contact
heror call 303-908-9584. Source: emerge marketing
Photo provided by freedigitalphotos.net.
Author:Jason Peck Phone: 720-446-6301 Dated: March 27th 2014 Views: 3,581 About Jason: ...
Recognized as a top selling team in Denver Metro area. Nationally recognized for homes sold by the Wall Street Journal, Real Trends and Top 5 agent by RIS Media. Our goal is simple and that is to exceed our client's expectations by providing professional service, expert advice and exceptional results.
Halloween is just around the corner. If your kids are anything like mi
"We worked with Karen Venier for a relatively short time for a good reason: our home sold at full price within hours of hitting the market! While it’s true that the Denver housing market is “hot,” credit for the speed and ease of our transaction belongs to Karen. She was great to work with, giving us perfect advice about readying our home for sale and then expertly guiding us from offer to close. Along the way, we came to appreciate Karen for her skillful blend of professionalism and personal touches – like dropping off our favorite beverages during a particularly stressful time in our move or shoveling our driveway in subzero temps after we’d left the state (way beyond the call of duty!). Now that we’ve relocated to Wisconsin, we keep saying that we wish Karen could be our buyer’s agent here. Since that’s not possible, we’ll shout her name loudly to whoever might be looking for a home in the Denver area.
Thanks for the great work, Karen!