LX Financial is an asset-based lender, which means that the property security is of primary consideration, credit a still important second. Other assets and income also remain a consideration.
Most people deserve a better credit score. The system is unfair and error prone. The good news is that there are often very simple things that you can do that can drastically improve your score, resulting in more borrowing power and better rates.
1. Always pay your bills on time-35% impact
Paying off debts on time has the greatest positive impact on your credit score. Late payments, Collections, Charge-offs and Judg- ments all have a negative impact. Delinquencies that have occurred in the last two years carry more weight than older items.
2. Credit card balances-30%-impact
Keep your credit card balances (revolving accounts) at or below 30% of the credit limits to maximize your credit scores. If you max out a credit card your credit score can drop by as much as 60 points or even more!
3. Don’t close credit card accounts-15%-impact
This portion of your credit score indicates the length of time since a particular credit line was established. Closing a credit card will impact your credit history and diminish your credit score.
4. Limit your credit inquiries-10% impact
Each new credit inquiry can reduce your credit score by as many as 15 points. Note that checking credit score for accuracy will not impact your credit score.
5. Never Co-sign for anything-Especially family members.
The cosigned account will affect your credit report and scores no matter what because ultimately you’re just as responsible for the debt as your friend or family member. If the debt is not paid on time, your scores will go down!
6. Do sign up for credit monitoring.
Monitoring your credit will inform you of any new credit activity that may impact your credit scores. Credit monitoring will also protect you from any suspicious or fraudulent activity which can,
7. Set up automatic bill pay.
Since 35% of your credit report represents your payment history, the longer you pay your bills on time the better. Avoid missed payments by setting up your accounts to be paid automatically is key.
We recommend THECREDITPROS. Everything starts with a free consultation, which will give you valuable insight in what a better credit score can do for you, and how this can be achieved. Their low cost, AI-driven Personal Credit Management System puts everything at your finger tips.
Business Relationship Manager