allDo you remember the feeling you had in grade school, when you had to take home a report card with some weak scores? At Palm State Mortgage, we know you might be getting that same queasy feeling if you are taking home poor credit scores. We also know that it is time for you to check and improve your scores now, so that you can plan your house and mortgage hunting adventure for this summer.

Therefore, we have collected our favorite hot tips for improving your credit scores. Today, we present part one of our special report on this vital topic.

1. Get In The Know: Obtain copies of your credit report–then make certain every detail is correct information is correct. We have the online address of a source for a really free credit report.

Did you know that you are entitled to a free report from each of the three national credit reporting companies every year?

Alternatively, call 877-322-8228 or write an Annual Credit Report Request Form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

2. Remember To Pay If You Play:

There is no doubt retail therapy is very entertaining, but keep good records. The number one thing experts agree will improve your score is paying your bills on time. Use automatic payments from your bank account or use a calendar to remind you of due dates. The hidden plus to this process is that you won’t be paying senseless overdraft fees!

3.  Beware of Credit Repair:  Almost every day you will see a commercial or receive a direct mail ad that shouts the ability to fix all the lowest, most severe credit mistakes, down and dirty.
They say: “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”
They offer: “We can erase your bad credit — 100% guaranteed.”
They lie: “Create a new credit identity — legally.”

Palm State Mortgage urges you to avoid any company that makes such blatant promises. They are usually scams, and you will pay a high price for services you could learn to do all by yourself or with legitimate help.

There are ways you can find honest help at low or no cost. Check out the Federal Trade Commission’s report, “Credit Repair: How to Help Yourself.” It lists ways to improve your score if it has been judged on out of date information or errors. They will show you how to write your own complaint letter, and why you can dispute some types of finding on your credit report.

4. Quiz Yourself: There are certain questions you can ask yourself if you want to understand how your credit score is figured. Do you pay your bills on time? Have you had an account referred to a collection agency? Have you declared bankruptcy? The answers are part of your credit history, and they will be reflected in your credit report.

What is your outstanding debt? “Many scoring models compare the amount of debt you have and your credit limits. If the amount you owe is close to your credit limit, it is likely to have a negative effect on your score.” Economists advise us to spend only about a third of the credit we are offered by each of our credit companies, if we really want to look good on our credit report.

5. The Long and the Short of It:  Experts tell us that “a short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances.”

6. Mix It Up:  You should have a variety of credit, not just credit cards, but a nice mixture of credit cards with an installment plan, car or mortgage payment. “A mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score.”

“Lenders look at several variables on the credit report. They calculate the outstanding debt in relation to your total credit limits.” Naturally, they study the length of your credit history and the pursuit of new credit. They will also note how many inquiries are on your report,” says Matt Hackett, a direct mortgage lender in New York.

Thank you for reading the Palm State Mortgage Company Blog, and we hope you will share us with friends. Just click a button below, and do not forget to join us next week for more hot tips!