IGI Financial, LLC

01/17/2025

The fastest way to increase your credit score is to lower your credit utilization. Here’s how:
1. Pay Down Credit Card Balances: Aim to reduce your balances to below 30% of your credit limits (ideally under 10%).
2. Request a Credit Limit Increase: Ask your credit card issuers for a limit increase, which lowers your utilization rate (ensure you don’t increase spending).
3. Become an Authorized User: Ask a trusted family member with a high credit limit and excellent payment history to add you as an authorized user.
4. Dispute Errors on Your Credit Report: Check your credit reports for mistakes (e.g., late payments or incorrect balances) and dispute any errors to potentially boost your score quickly.

These steps can result in noticeable improvements within one to two billing cycles.✅

01/16/2025

When taking out a car loan, consider these tips to protect your credit and minimize costs:
1. Check Your Credit Report First: Review your credit report for errors and know your credit score. A higher score can qualify you for better interest rates.
2. Shop for the Best Rates: Compare offers from banks, credit unions, and dealerships. Prequalify if possible to avoid multiple hard inquiries on your credit.
3. Keep the Loan Term Short: Shorter loan terms (e.g., 36–48 months) usually have lower interest rates, saving you money in the long run, even if the monthly payment is higher.
4. Avoid Over-Borrowing: Buy a car that fits your budget. A lower loan amount reduces your debt-to-income ratio, which helps maintain good credit.
5. Make a Larger Down Payment: A bigger down payment reduces the loan amount, monthly payments, and overall interest.
6. Automate Your Payments: Set up automatic payments to avoid late payments, which can hurt your credit score.
7. Refinance if Rates Drop: If your credit improves or interest rates fall, consider refinancing your car loan for better terms.
8. Avoid Adding Extras to the Loan: Extras like warranties and insurance can increase your loan balance, leading to higher interest payments over time.

Staying within your budget and making on-time payments are key to maintaining a strong credit profile.

01/15/2025

Credit Tip of the Day!

Keep Your Credit Utilization Low:
Aim to use no more than 30% of your total credit limit across all your credit cards. For example, if your total credit limit is $10,000, try to keep your balances below $3,000. Lower utilization (ideally under 10%) can improve your credit score over time.

Pay off your balances in full each month to avoid interest charges whenever possible.

03/20/2024

03/18/2024

For those not yet owning homes, what obstacles stand in the way? Financial limitations, scarce appropriate housing choices, poor credit or economic instability perhaps?

04/28/2023

When you apply for a credit card, shop for a loan or prepare to take on a new financial responsibility (like renting an apartment), the lenders and companies involved want to know whether you’re likely to be a financial risk. By conducting an inquiry into your credit history, these companies are able to assess your level of financial responsibility and the likelihood that you might default on your loan, miss credit card payments or skip out on rent.

There are two different types of credit inquiries: hard inquiries, which can have a negative effect on your credit score, and soft inquiries, which don’t affect your credit score at all.

Book your consultation now!
LINK TREE:
https://linktr.ee/igifinancial
[email protected]
📞 Office: (832) 909-6372

04/28/2023

Hard inquiries occur when you apply for financing, such as a loan or credit card, and a lender reviews your credit report during the application process.

Some examples of when your credit might undergo a hard inquiry include applying to rent an apartment, applying for a mortgage, applying to refinance a loan, such as a mortgage, and opening a new cellphone account.

Hard inquiries can stay on your credit report for up to two years and can impact your credit score for up to one year. It's important to note that while hard inquiries can affect your credit score, the impact is generally small and temporary.

Book your consultation now!
LINK TREE:
https://linktr.ee/igifinancial
[email protected]
📞 Office: (832) 909-6372

04/28/2023

Some examples of soft inquiries include checking your own credit report, employment-related credit checks, account maintenance credit checks from current creditors, and preapproved offers.

Soft inquiries do not impact your credit score.

Another example of a soft inquiry is when a potential employer views your credit report for a background check, but they need your permission to do so.

Checking your own credit scores and reports is also an example of a soft inquiry. Soft inquiries are not visible to potential lenders, and only you can see the soft inquiries that appear in your credit file.

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04/27/2023

When you’re buying a home or car, don’t let a fear of racking up multiple hard inquiries stop you from shopping for the lowest interest rates.

FICO gives you a 30-day grace period before certain loan inquiries, like those for mortgage or auto, are reflected in your FICO® credit scores. And FICO may record multiple inquires for the same type of loans (again, like mortgage and auto) as a single inquiry as long as they’re made within a certain window. This window is typically about 14 days.

While some lenders can rely on scoring models that give you more time to shop without incurring an additional hard inquiry, you may want to stick to 14 days to do your comparison shopping, since you likely won’t know which scoring model a lender relies on to generate your score.

Book your consultation now!
LINK TREE:
https://linktr.ee/igifinancial
[email protected]
📞 Office: (832) 909-6372

04/27/2023

HOW MANY HARD INQUIRIES ARE TOO MANY

The number of hard inquiries that are considered too many can vary depending on the lender and the individual's credit history. However, a general rule of thumb is to avoid having more than six hard inquiries on your credit report within a six-month period.

Having six or more hard inquiries can significantly impact your credit score and make lenders more likely to deny you, even if your score is otherwise sufficient.

It's important to note that while hard inquiries can affect your credit score, the impact is generally small and temporary. Additionally, there are exceptions to this rule, such as when you're shopping around for a mortgage or car loan.

Book your consultation now!
LINK TREE:
https://linktr.ee/igifinancial
[email protected]
📞 Office: (832) 909-6372