good credit score

It is confusing, but I think I understand the variation now. Can a single late payment hamper my score?

Hi Jenney,

I would advice to take care of this area especially to maintain a good credit score. Paying bills in time plays a major role to have a good score.

Any late payment for 30 days or more may affect your score. Even a single late payment may make your score drop by almost 20 points.

So, always make arrangements to make the payments in time.

God bless you.

For MortgageFit,
Samantha

Hi Jenny999,

Try never to fail in your payments for more than 30 days. The lenders don't like to see a record of any late payment as they consider it as a risk factor for payments in future if they grant loans.

Any late payment will show up in your report for up to seven years.

Regards,
Blue

If you have a good credit score, then it makes you responsible at the same time to maintain it. Some steps you can follow to maintain it -

• Never spend more than what you can afford. This will prevent any unpaid debts to mount up.
  
• Make it a habit to pay off your bills in time.
  
• Do not make continuous requests for additional credit.
  
• Talk to the creditor in case you find it difficult to repay ant debt so that he may possibly arrange an alterative method.
  
• Check your credit report frequently for some errors and get it cleared immediately if found.
  

Managing a good credit score is important to qualify for any loans with the best rates.

James

Good credit score can't be treated as a luxury to possess today. With the rates increasing it becomes all the more important to maintain a good score to get a relief from getting a mortgage at a higher rate.

Since the credit history is often required in our regular deals today, a good credit score should be maintained although it is difficult to achieve and maintain always. At least we should try for it for our benefit.

Is national origin a factor in credit scoring?

A credit scoring system doesnot use characteristics like race,sex,national origin and also religion.

Regards,
Blue

If I have may of those little credit cards, such as the ones that are just for one store, would it hurt to close those after they are paid off? I am wondering if I have many cards, if closing some will hurt or help my credit score.

Hi, as far as I know, shutting down credit accounts lowers the total credit available to you and makes any balances you have loom larger in credit score calculations. If you close your oldest accounts, it can actually shorten the length of your reported credit history and make you seem less credit-worthy.
Liana

I also agree and one more thing is there, if you don’t use your cards much and your score is already high, the damage caused by shutting down more recent unused accounts will be minimal and may be well worth the peace of mind.

If you do carry balances or charge a lot, however, leave all your old accounts open, especially if you’re about to apply for new credit.

I HAVE PAST DUE NOTIFICATION ON MY REPORT (93) FROM A DENTAL OFFICE. IT IS THE ONLY BAD MARK ON MY REPORT. iT IS SCHEDULED TO BE REMOVED 11/07. IF I PAY OFF THE 96.00 BALANCE, WILL IT IMPROVE MY SCORE? OR SHOULD I JUST LET IT DROP OFF IN 07. MY SCORE IS CURRENTLY 619?

Hi Thomas,

If you are paying off your due payments, and the same thing is getting reported with the credit bureaus, then definitely the negative mark will get removed but it may take some time, if you are already late in your payment.

It's not clear from your statement that when you made the last payment. If it was in 2000 then it will be removed in 2007.

But it is always to be regular on the payments so that you may get some consideration if you require further loan.

So, if you can afford it, then I shall suggest cleaning your hands off any dues. :wink:
If you have some other emergencies where you require the money then you can wait and get it removed later.

James

How much will my credit score increase for paying off balances such as a car note and furniture loan?

Hi,

There is no open formula on how much the credit score improves for paying off a particular loan.

But definitely paying off any loans will affect positively for your score.

I can give you a general idea on the type of credit related information and how they affect the score, but it's always a rough idea.

Your payment history constitutes about 35% of your FICO score. 30% depends on how much you owe on all your accounts.

Length of your credit history can constitute about 15% of the score. Any new credit will affect 10% of your score.

10% of the score is influenced by mix of credit types like credit cards, installment loans such as mortgage, auto loan etc.

It's better to be regular on your payments and never be late to keep your score fair.

Regards,
Blue