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4.  Types of Credit  - 10% Impact

      A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only.

5.  Inquiries  - 10% Impact

     This percentage of the credit score quantifies the number of inquiries made on a consumer's credit within a six month period.  Each hard inquiry can cost from 2 to 25 points on a credit score, but the maximum number of inquiries that will reduce the score is ten. 




Five factors of credit scoring

1.Payment History  - 35% Impact

    Paying debt on time and in full has the greatest positive impact on your credit score.  Late payments, judgments and charge-offs all have a negative impact.  Missing a high payment will have a more severe impact than missing a low payment, and delinquencies that have occurred in the last two years carry more weight than older times.


 2. Amounts Owed  - 30% Impact 

     This factor marks the ratio between the outstanding balance and available credit.  Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home. 


3.  Length of Credit History  - 15% Impact

     This portion of the credit score indicates the length of time since a particular credit line was established.  A seasoned borrower will always be stronger in this area. 

Tips on how to get your loan approved:

DO  continue making your mortgage or rent payment (on time)

DO  stay current on all existing accounts

DO  keep working at your current employer

DO  keep your same insurance company

DO  continue living at your current residence

DO  continue to use your credit as normal

DO  call us if you have any questions


DO NOT  make any employment or income changes

DO NOT  make any major purchases (car, boat, jewelry, fur, etc.)

DO NOT  apply for new credit (even if you are pre-approved)

DO NOT  open any new credit card

DO NOT  transfer any balances from one account to another

DO NOT  pay charged off balances without prior discussion with us

DO NOT  pay collection accounts without prior discussion with us

DO NOT  buy any furniture

DO NOT  close any credit accounts

DO NOT  change bank accounts

DO NOT  max out or go over limit on any credit card accounts

DO NOT  consolidate your debt into 1 or 2 credit cards

DO NOT  take out a new loan

DO NOT  start any home improvement projects

DO NOT  finance any elective medical procedures

DO NOT  open a new cellular phone account

DO NOT  join a new fitness club

DO NOT  pay off any loans or credit cards without prior discussion with us