Tuesday, February 19, 2008
A couple of tips on Maintaining Good Credit.
Once the credit repair process is complete, it's important to understand how to
maintain good credit. Here are some answers to a couple of the most common
questions that I get.
Q: How Many Credit Cards Should I Have?
A: I suggest that everyone has 4 credit cards:
1. VISA
2. AMEX
3. Gas Card
4. Department Store
This is what we call a good “credit mix™”. This credit mix counts for about 10%
of your credit score.
If you keep all of these cards at a 30% balance, your credit score will increase.
Don’t think that paying only the minimum payment will help your score. Even if it
is on time, it’s best to keep your balances as low as possible.
Q: Do Inquiries Hurt My Credit Report?
A: Inquiries count for about 10% of your overall score.
And by the way, if you pull your own credit it doesn’t affect your score at all. The
same goes for involuntary inquiries, should a company run your credit without
asking you first, for example.
So, don't accept every opportunity to apply for new credit, choose wisely and
apply for new credit only ever-so-often!
Posted by Perfect Credit at 10:30 AM 0 comments
Labels: credit cards, credit inquiries, maintain credit
Monday, February 18, 2008
How Do I Get My Creditors to Raise My Limits On My Cards?
The obvious way would be to call them and ask, however, there are other things
you could do to raise your limits fast. Credit Cards in general should be used to
leverage monies month to month. When you receive your daily bills, DO NOT
pay them with monies from your bank account. Use one of your credit cards.
When the credit card bill comes in the following month, pay the bill fully off with
the monies that are held in your bank account for those bills. Creditors will see
larger than your “normal” movements in your credit card balances and raise
your limits. NOTE: Always try to keep balances 70% away from your limits, if not
at 0 balance.
Posted by Perfect Credit at 7:16 AM 0 comments
Sunday, February 17, 2008
Historic Fed Move Cuts Both Ways for Borrowers
Hot on the heels of its surprise inter-session rate cut of 75 basis points last
week, the Federal Reserve cut key interest rates again, the fifth straight cut
since September 2007. In its statement last week, the Fed said it had decided to
cut the federal funds rate "in view of a weakening of the economic outlook and
increasing downside risks to growth." In other words, economic data suggests
the US is on the brink of recession, and the Fed is acting accordingly.
Who benefits from this cut?
If you have a loan that is directly tied to the Prime Rate, you will see an
immediate benefit. Home equity lines of credit (HELOCs) and variable rate
charge cards are the types of loans that will have an interest rate reduction on
their next statement.
What does this mean for long-term rates?
Long-term mortgage rates, the lowest we've experienced in years, could actually
increase after this cut, based on historical performance and recent trends.
So if you're waiting for long-term rates to fall further, don't count on it. Your best
chance to lock in the lowest rates since 2005 is now. Getting your application in
process now will allow you to capture a great rate before it's too late.
What REALLY moves mortgage rates?
Fixed-rate mortgage rates aren't directly tied to Fed interest rate moves.
Instead, they tend to follow in the direction of other long-term government bond
yields, such as the 10-year Treasury, which historically moves in accordance
with the economic outlook and in advance of Fed actions. The performance of
Mortgage Backed Securities, issued by Fannie Mae and Freddie Mac, is what
really determines long-term mortgage rates.
How does the economic stimulus package fit into the picture?
The economic stimulus package from Congress and the White House could be a
double-edged sword for borrowers. Combined with recent Fed actions, the
package could create inflation and bring about higher long-term interest rates.
On the positive side, conforming loan limits are likely to be raised from the
current $417,000 to upwards of $625,000. This means great potential savings
for purchase and refinance candidates who live in 20 high-cost areas across the
country.
What should you do next?
If you're unsure how the rate-cut or the proposed legislation affects your
mortgage, don't worry, you're not alone. There's no one-size-fits-all answer.
Give us a call right away. We'll review your mortgage and see what, if anything,
can or should be done to make the most of your individual financial goals and
needs.
Posted by Perfect Credit at 10:12 AM 0 comments
Labels: credit, economy, mortgage
A couple of tips on Maintaining Good Credit.
Once the credit repair process is complete, it's important to understand how to
maintain good credit. Here are some answers to a couple of the most common
questions that I get.
Q: How Many Credit Cards Should I Have?
A: I suggest that everyone has 4 credit cards:
1. VISA
2. AMEX
3. Gas Card
4. Department Store
This is what we call a good “credit mix™”. This credit mix counts for about 10%
of your credit score.
If you keep all of these cards at a 30% balance, your credit score will increase.
Don’t think that paying only the minimum payment will help your score. Even if it
is on time, it’s best to keep your balances as low as possible.
Q: Do Inquiries Hurt My Credit Report?
A: Inquiries count for about 10% of your overall score.
And by the way, if you pull your own credit it doesn’t affect your score at all. The
same goes for involuntary inquiries, should a company run your credit without
asking you first, for example.
So, don't accept every opportunity to apply for new credit, choose wisely and
apply for new credit only ever-so-often!
Posted by Perfect Credit at 10:30 AM 0 comments
Labels: credit cards, credit inquiries, maintain credit
Monday, February 18, 2008
How Do I Get My Creditors to Raise My Limits On My Cards?
The obvious way would be to call them and ask, however, there are other things
you could do to raise your limits fast. Credit Cards in general should be used to
leverage monies month to month. When you receive your daily bills, DO NOT
pay them with monies from your bank account. Use one of your credit cards.
When the credit card bill comes in the following month, pay the bill fully off with
the monies that are held in your bank account for those bills. Creditors will see
larger than your “normal” movements in your credit card balances and raise
your limits. NOTE: Always try to keep balances 70% away from your limits, if not
at 0 balance.
Posted by Perfect Credit at 7:16 AM 0 comments
Sunday, February 17, 2008
Historic Fed Move Cuts Both Ways for Borrowers
Hot on the heels of its surprise inter-session rate cut of 75 basis points last
week, the Federal Reserve cut key interest rates again, the fifth straight cut
since September 2007. In its statement last week, the Fed said it had decided to
cut the federal funds rate "in view of a weakening of the economic outlook and
increasing downside risks to growth." In other words, economic data suggests
the US is on the brink of recession, and the Fed is acting accordingly.
Who benefits from this cut?
If you have a loan that is directly tied to the Prime Rate, you will see an
immediate benefit. Home equity lines of credit (HELOCs) and variable rate
charge cards are the types of loans that will have an interest rate reduction on
their next statement.
What does this mean for long-term rates?
Long-term mortgage rates, the lowest we've experienced in years, could actually
increase after this cut, based on historical performance and recent trends.
So if you're waiting for long-term rates to fall further, don't count on it. Your best
chance to lock in the lowest rates since 2005 is now. Getting your application in
process now will allow you to capture a great rate before it's too late.
What REALLY moves mortgage rates?
Fixed-rate mortgage rates aren't directly tied to Fed interest rate moves.
Instead, they tend to follow in the direction of other long-term government bond
yields, such as the 10-year Treasury, which historically moves in accordance
with the economic outlook and in advance of Fed actions. The performance of
Mortgage Backed Securities, issued by Fannie Mae and Freddie Mac, is what
really determines long-term mortgage rates.
How does the economic stimulus package fit into the picture?
The economic stimulus package from Congress and the White House could be a
double-edged sword for borrowers. Combined with recent Fed actions, the
package could create inflation and bring about higher long-term interest rates.
On the positive side, conforming loan limits are likely to be raised from the
current $417,000 to upwards of $625,000. This means great potential savings
for purchase and refinance candidates who live in 20 high-cost areas across the
country.
What should you do next?
If you're unsure how the rate-cut or the proposed legislation affects your
mortgage, don't worry, you're not alone. There's no one-size-fits-all answer.
Give us a call right away. We'll review your mortgage and see what, if anything,
can or should be done to make the most of your individual financial goals and
needs.
Posted by Perfect Credit at 10:12 AM 0 comments
Labels: credit, economy, mortgage
| About Me: Marty I'm the CEO of Perfect Credit Repair, Inc. My company can eliminate negative items on most people's credit & the purpose of this blog is to provide education on how to maintain good credit. Email me with any questions that you have! |
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