Today, while telling a police officer at Marymount University about why his nephew should attend the DREAM BIG First Time Home Buyer Seminar (Shameless plug: Arlington Central Library, Nov 3rd, 7 pm â€“ 8 pm.), we got on the subject of credit scores. He wanted to know what kind of credit score his nephew needed to get a â€œgoodâ€ loan. For the record, lenders take in a lot more into account than just your credit score when considering qualifying people for loans; nonetheless, your credit score is very important.
So, how do you maximize your score? Hereâ€™s some great advice, provided by Chris Kaucnik, Marketing Director for Home Warranty of America:
revolving credit cards down is generally more beneficial than, for example,
paying down student loans, mortgage or auto loans.
-Always leave a 30% or higher gap between what you owe on the card and the cardâ€™s limit. Lenders look for this minimum gap.
-Use cards with care even if you pay off balances each month because depending upon statement dates, the lender may see big balances.
-Pay down the cards closest to their limits first for speedier credit repair. The lending bank will then see the â€œgapâ€ it wants to see.