Debt Consolidation Credit Counseling In Phoenix

Is it really some revolutionary idea that good credit helps us buy stuff? Of course not, but we need to understand the system to maximize our chances.

It is true that your credit scores, ranging from 400 to 850 are the main determinant when buying a home with a mortgage. The credit scores give lenders an easy snapshot of your credit picture.

People tend to oversimplify things. When it comes to their own credit scores they assume that as long as payments have been on time the scores should be good.

This is only partially true. Your credit score is generated from numerous factors in combination. Thereafter, no one knows except the developer and those in the real know.

Since we started with payment history you should be aware that you're not late until thirty days post the due date. Keep that in mind when in a pinch. You pay all the way up til the end and still have a clean payment history.

Keep low balances relative to your available credit. If you keep a five dollar balance and you have $1,000 limit is better than a $5 balance and a $10 credit limit.

You definitely don't want to be maxing your cards out. That is bad juju, even if you pay them on time.

A lack of credit history typically works against credit scores. Do yourself a favor and get 2 or 3 slats of plastic. Start using them immediately and pay on time of course.

Do this in moderation. You don't want to go out and open a whole plethora of trade lines. This may be seen as a move to use a bunch of debt.

You want to use your new credit cards every single month and every month you want to pay off the balance. You'll be shocked at how much your scores rise in a very short time.

As far as credit bumps, bruises and scrapes, the more time they exist in your past the better your scores. If even considering looking for a home be extremely careful. Just one recent 30 day late can kill scores.

The scoring system is logical. Be logical when sculpting your credit and watch your scores rise.