29/06/2022
💳📊Tuesday credit tips:
1) The variety of your account types matter. Revolving accounts, installment accounts, mortgages. Variety is the spice of life, you need more than just one credit card.
2) Your credit card utilization can make BIG adjustments in your score (up and down). Try and keep your utilization fairly consistently below 10% but not 0%. I recommend setting reminders in your phones to pay balances down to $20 before the end of your billing cycle if at all possible. Do this every month. Then pay your bill on time... EVERY time/month.
3) If you get behind on a payment, make sure you get caught up ASAP! I often see "rolling lates" where you think you've only missed one payment.. but it turns out you had 10 late payments in a row because you never got the account fully caught up.
4) By law, credit repair can NOT charge you before services are rendered. These companies get around the gray area of the law by placing you on a monthly subscription. Know your laws and research companies before payment. Credit repair companies don't have any super powers that allow them to do anything more than you can do by yourself... for free! They only act as an advocate on your behalf.
5) Charged off accounts do NOT count against you in a mortgage application. Your lender should not be asking you to pay these off unless you get a "pay to delete" and the entire account is removed, OR if it will raise your score significantly.
6) Medical collections never count against you. Even if it's $1,000,000. It doesn't count.
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