Fixing Your Credit Score

 It’s important to check your credit report at least once a year and assess what actions to take when discovering your score is in need of improvement. Credit-reporting agencies calculate your 3-digit FICO score based on these weighted factors: payment history (35 percent of score), the total you owe creditors (up to 30 percent of score), the length of your credit history (15 percent of score), any newly established credit accounts and the type of credit and loans you have (10 percent of score). Your credit score is a reflection of how you manage your payments and finances over a period of time. If you have a high credit score, you are, naturally, viewed more favorably and offered better financing rates when purchasing a big ticket item such as a car or Real Estate. If you have been late or skipped payments over time and received the resulting low credit score, there are always methods that can help turn the issue around. Review a copy of your credit report and ensure there are no errors or strange transactions that may have been mistakenly added. Bring delinquent accounts up to date by borrowing money from a relative or withdrawing from your savings. Do not apply for any additional credit cards—resist opening a retail store credit card so you can save a percentage on a purchase at the register. Opening additional lines of credit can drag down your numbers even further. Maintain a strict bill-paying schedule and issue payments in a timely manner way before due dates. You may have to put your savings goals on hold as you work towards paying down your debt. It takes discipline and time, but it is well worth the effort as you reinstate your reputation as a responsible money manager.

Call our office today if you have questions about buying or selling Real Estate in the Palm Springs and La Quinta areas. 760-541-7006