Bill Shipp, Mortgage Expert NMLS 1775670

Bill Shipp, Mortgage Expert

Simple ways to improve credit scores: The number one method is to pay bills on time. Delinquent bill payments can have a tremendous negative impact on credit and the longer a person pays bills on time, the better the credit score. For example: A person with a credit rating of 707 can raise their score another 20 points by paying all bills on time for a single month. Paying items such as mortgage and rent are especially important. Mortgage lenders like to look at payment t...rends on mortgage and rent payments. Balances need to be low on credit cards. High credit card debt can hurt the credit score and lower the credit score as much as 70 points. It is important to not open credit cards that are not needed. New accounts can lower the account age, which can lower the credit score by 10 points. It is good to have credit cards, but it is very important to manage them well. Having credit cards and installment loans raise credit scores, especially if payments are consistently made on time. Someone who doesn’t have credit cards tend to be at higher risk than someone who hasn’t managed their cards well. Accounts still stick around when they are closed. The account will still show up on the credit report and be factored into the score.

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