March 12, 2014

How To Instantly Raise Your Credit Score - Loretta McNally (Heeran's Home Team, RE/MAX PLATINUM Realty)

By:  Loretta McNally, Heeran's Home Team, RE/MAX PLATINUM Realty

Today, Ryan Larsen with Regent Financial Group, joins us to discuss how “you could raise your credit score and perhaps clean up your credit.”  Ryan has worked with Regent Financial for 10 years with a total of 12 years in the mortgage industry assisting Omaha homebuyers.  He has a grand 16 years of experience in the financial industry. 

He first reported that most companies require a 640 credit score; however, with Regent Financial you can get approved with a credit score of 620!!!

 He also explained that anyone who applies for credit with Regent Financial Group receives a free credit evaluation to determine what may be needed to increase your credit scores.  Not only will increasing your credit score allow you to finance the purchase of your home, it may also allow you to qualify for a lower interest rate, as well as more programs, thereby increasing your buying power. 

The credit reports he receives are so detailed that many times they are able to help clients increase their scores in as little as 3 days. Most of our competitors simply deny buyers if they don't possess the minimum credit score to qualify.  Ryan reported that at Regent Financial, we go that extra mile and work hard for our client’s best interests.

 Your credit score is a number that summarizes your credit risk.  Lenders like Regent Financial use it to make a credit decision such as the interest rate you get when you apply for a loan.  The higher your credit score, the less risk which translates into more favorable terms for financing.  The lower your credit score the higher risk you are, which may make qualifying difficult and may care less favorable terms for financing.

There are 5 main things that make up your credit score including: 1) Payment History, 2) Amount Owed, 3) Length of Credit History, 4) New Credit, 5) Types of credit used.  All five of these items play a different percentage of determining your credit score, and are broken down accordingly.

Your payment history is 35% of your credit score so making your payments on time has the biggest impact.  The amount owed is 30% of your credit score which is determined by how much revolving debt/credit card debt a person carries in contrast to their available credit.  Your length of credit history is 15% of your score.  New credit and types of credit are each 10% of an individual’s credit score.  So as you can see, payment history and the amount owed are the two biggest contributors to your credit score.

If you want to increase your credit score, in most cases you can realize a tremendous increase in your credit scores by simply paying down your credit cards.  To maximize your credit scores you only want to be using about 30% of your available credit.  So let’s say you have a $5,000 credit limit on your credit card, to maximize your credit scores you would want to keep your credit card balance at or below $1,500.  Where most people get themselves into trouble is carrying too high of credit card balances specifically those that use 70% or more of their available credit.  After reviewing your credit they are generally able to advise our clients on what accounts to pay down and how much to pay them down to ensure you get the best possible terms for financing. And in as little as 3 business days you can have improved credit scores

Are you looking to sell your current home and buy a new come?  Omaha real estate is on the move!! We have the complete MLS real estate listings and will show you all the properties that meet your needs.  Ryan, who offices in mid-town and serves all of Omaha, said that if you want to find out your credit scores simply complete a mortgage application with him at Regent Financial.  In as little as 10 minutes he'll have credit scores from all 3 major credit bureaus, and from there be able to tell you exactly how much home you will qualify to buy.  You can reach Ryan at 402-884-5624. 

Interviewed By Loretta McNally, Heeran's Home Team, RE/MAX PLATINUM Realty
Phone:  (402) 616-0103