Ways to Quickly Improve Credit

Your credit score has a big impact on your ability to borrow money to purchase a home. If your credit score isn’t where you want it to be, this blog is for you! Our team of mortgage lenders in Lake Ozark, MO works with borrowers with a wide range of credit scores. We have options that may work with your unique situation but we also suggest a few techniques to raise your credit score. Check them out:

Check Credit

The first step in improving your credit is knowing what your credit score is. Once you know your score, you can start taking steps to improve it. This step also gives you the chance to see what negative remarks are on your credit history. If there is an invalid entry on your credit, you can petition to have it removed. We highly recommend researching any ding on your credit that is not valid and getting it corrected. This does not mean dispute them, but take the necessary steps to get them removed or corrected.  

Make Payments On Time

Timely payments on your bills can have a positive impact on your credit score. It can be tough to keep up with payments but it's important to budget accordingly to ensure you are able to make your payments by the due date. 

Avoid Opening New Lines of Credit

A new line of credit may temporarily ding your credit. If at all possible, avoid opening a new line of credit, unless you've been advised by a professional to do so. In some cases, a new line of credit may make a difference in the long run to improve your score. 

Pay Down High Credit Debts

Your credit usage has a big impact on your score. It's best to keep your credit usage at 30% of your total credit limit. That means you should try to keep your credit card balances under 30% of the credit limit. Evaluate your current lines of credit and see where changes can be made to pay down higher debts. 

What are you waiting for? Now is the time to put these tips into action to help improve your credit score. Whether you’re looking to buy a home at Lake of the Ozarks right away or you’re preparing for the future, Team Lasson is here to help through the entire process. Give us a call at (573) 746-7211 or visit our website at www.yourlakeloan.com to get started!

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

First State Bank Mortgage – Michael Lasson 

2751 Bagnell Dam Blvd Suite B 

Lake Ozark, MO 65049

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions. 

How to Improve Your Credit Score when Preparing to Buy

Our mortgage lender in Osage Beach, MO knows how impactful your credit score can be when purchasing a home at Lake of the Ozarks. Last week we talked about how your credit score can impact your mortgage interest rate and this week we're diving into ways you can improve your credit score. A better credit score receives a better interest rate on a home loan. A few percentage points better can make a big impact over 30 years! Learn what steps you can start taking now to improve your credit score to prepare to buy a home at Lake of the Ozarks. 

Pay Bills in a Timely Manner

Making your payments on time is an important factor that goes into determining your credit score. Stay current on any bills you owe and make sure your payments are received before or on the due date to avoid a potential penalty. 

Check Your Credit

Your credit score fluctuates as changes are made to your financial situation over time. It's important to keep an eye on your score. If there is a big change, it's worth investigating what caused that change. If there is an item that is bringing your credit score down, there are options for counteracting those dings to your credit. 

Make an Effort to Pay Down Credit Cards

The amount you owe on revolving credit is a big consideration for your overall score, as well. If you owe a large amount on a credit card, take those extra steps to get it paid down, if at all possible. You'll be surprised at how much in interest you save when you start paying that total down!

Improve Credit Utilization Rating

A big portion of your score is based on your credit utilization rating. This is the ratio between what you owe on credit and your credit limits. It's ideal to keep a balance of about 30% (or less) of your total credit limit on a card. If paying your balance down quickly isn't a realistic option, it can be helpful to raise your credit limit to increase that credit utilization score. Consult the advice of a professional before making changes to your credit limit as it can have detrimental impacts, as well. 

Be Strategic About Applying for New Credit

New credit on your credit history can temporarily lower your credit score until the activity on the new credit can be analyzed. If you're planning to make a big purchase, like applying for a home loan, it's advised to avoid applying for new credit cards or loans. This kind of activity can stall the home loan application process if you have already been pre-approved or are in negotiations for buying a new home.

Your credit score has a big impact on the interest rate you pay when applying for a home loan at Lake of the Ozarks. If you're curious as to how much of a home you can get approved for, give us a call at (573) 746-7211 or visit our website at www.yourlakeloan.com. We look forward to speaking with you about your home loan needs!

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

 

Credit Score Information & Strategies

Credit will play a vital role in your ability to finance items such as homes, vehicles, qualifying for apartments, and much more. Therefore, it is important to keep a close eye on your credit habits to ensure that your score is high enough to get financing when needed. If you’re looking to secure a mortgage at Lake of the Ozarks, Team Lasson is ready to help, from the qualifying process to the final closing transaction. I’m here today to give you some information on your credit score and how to effectively manage it to ensure you can qualify to buy a home at Lake of the Ozarks. Read on to learn more!

How are Credit Scores Calculated

Your credit score is calculated by a mathematical algorithm that is linked to one of your three credit reports. Your FICO Score is a commonly used credit model used by mortgage companies, which typically range from 300 – 850. Many of the scoring models used consider your payment history on lines of credit, the length of the existing credit lines, the types of credit lines you have, and how often you apply for new credit.

How to Improve Your Credit Score

If your scores aren’t quite where you want them, there are a multitude of ways that you can improve them, such as:

Paying Bills On Time

Paying your bills on time is always a best practice for keeping your credit score on the rise. If you have to pick and choose a bill to pay, a good rule of thumb is to prioritize mortgages/rent, auto loans, student loans, phone bills, and utilities.

Paying Off Debt & Keeping a Low Balance

This item involves the credit utilization ratio – taking the amount of credit you’ve used at any given time and dividing it by your total credit limit. Keeping your utilization low tells lenders that you know how to effectively manage your credit lines and aren’t maxing them out.

Not Closing Unused Credit Cards

If they’re not costing you money, keeping unused credit lines open can benefit your credit utilization ratio. If you close unused accounts, it will impact this ratio by increasing your outstanding utilization.

Correcting Inaccuracies

When reviewing your credit reports from the three bureaus (TransUnion, Equifax, and Experian) always make note of any discrepancies that appear inaccurate. Incorrect information on these reports could be dragging your score down. Be sure to call the bureau and report any inaccuracies that you see on your reports. You may also have to contact the creditor directly to get them resolved.  DO NOT dispute the findings with the credit bureaus as this could be detrimental to obtaining a mortgage loan.

How to Establish A Credit Score

If you’re just starting out, it’s likely you may not have a credit score. This means that you have few (if any) credit accounts listed on your reports. People with fewer than 3 credit lines may have difficulties obtaining a score due to a lack of credit history/information. You can begin to establish a credit portfolio by; applying for a secured credit card, become an authorized user on someone else’s credit card, or taking a “credit builder loan.”

Rebuilding Your Credit Score

Time is your biggest ally when it comes to fixing bad credit. The length of time that it will take for your score to rebuild can vary depending on the type of negative change. Delinquencies, for example, remain on your credit report for 7 years. Items of public record stay on the reports for 7 years, although certain bankruptcies can remain for up to 10. Credit inquires will show on your report for two years. 

As always, your mortgage experts at Lake of the Ozarks, Team Lasson is always here to assist with your home financing needs. I will pull your credit during the loan qualification process and can give you accurate information about your scores, credit lines, issues, as well as advice on how to proceed. Your credit is going to play a large role in your ability to secure a mortgage at Lake of the Ozarks, and I’m here to provide you with exceptional loan services and techniques to ensure you can get your dream home. 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Fun Facts About Credit Scores

Your credit score can have a huge impact on your purchasing choices, but can often feel confusing and even frustrating. Credit scores are a common topic in the mortgage industry, so we wanted to take a few moments and maybe help answer some questions. Whether you have a great credit score and would not have any trouble getting a Lake of the Ozarks mortgage, or you may have some issues that need to be addressed to help improve your numbers - there are always interesting things to learn.

Five Core Factors Make Up Your Credit Score

Your FICO score is made up of five factors, and different percentages make up each criterion. When applying for credit, these factors are important. The five factors that impact your credit are:

• Diversification of Credit
• Inquiries & New Credit
• Credit History Length
• Credit Utilization
• Payment History

Credit Reports and Credit Scores are Different

A credit report will list every piece of your financial history that affects your creditworthiness. This can be helpful when you want to review your credit history and find the inaccuracies, fraud, or just general curiosity. Your credit score is the numerical grade of your creditworthiness. The purpose of checking your credit score is to get a quick snapshot of your score, giving you the knowledge of where you stand before you start house hunting at the Lake of the Ozarks.

Negative Credit Items Are Not Negative Forever

Did you know that most negative items will remain on your report for seven years at the most? This is due to the regulations set by the Fair Credit Reporting Act. However, bankruptcy can last up to 10 years or more in some cases.

FICO Credit Scores Can Range from 300 to 850

A credit score can range depending on the credit bureau, but knowing your score can help you understand what needs to be done to improve it. A “good” score ranges from 680 to 739, anything below that could be “poor” or “fair”, and anything above it could be “very good” or “exceptional”. There are things you can do to improve your score, so knowing where you sit can tell you how much you need to do to get to your next goal.

FICO Scores Are Important and Used By Many Lenders

The FICO credit scoring system was founded in 1956 by Bill Fair and Earl Isaac. The purpose behind it was to help lenders make well-informed lending decisions. FICO analyzes scores from the three major bureaus: TransUnion, Equifax, and Experian. In fact, 90% of lenders use your FICO score when making their lending decisions.

You Have Several Credit Scores

Did you know that your credit score can vary based on the credit bureau reporting them? The major bureaus all have slightly different information regarding credit history. It seems confusing, but there are also different scores specific to particular industries. An example would be that auto lenders review different risk factors than mortgage lenders, so the scores that each lender receives can vary. Some of the factors that affect your credit score could be the entities that report your credit, the time that the score was reported, the scoring model that is used, and the type of credit you are applying for.

True or False: Checking Your Own Score Will Hurt Your Credit

False! There is a myth running around that if you check your credit score or order a credit report, that you will hurt your credit. Those “soft” inquiries should not affect your credit. Hard inquiries, like when a lender looks at your credit can negatively impact your score. Just remember that the consequences are not strong, and they are temporary.

When it comes time to secure a mortgage at the Lake of the Ozarks, your credit score is an important factor. There are several programs available to help borrowers better their credit score. A solid credit score lends to more financing options when preparing to buy a home. For more information on how your Lake of the Ozarks mortgage lender can help you purchase your dream home, give me a call at 573-746-7211.


For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

How Credit Utilization Can Affect Your Mortgage Loan Approval

While you may know that your credit can affect your ability to be approved for a home loan at the Lake of the Ozarks, what do you know about how your credit score is determined? Your credit score is influenced by 5 different factors: payment history, level of debt/credit utilization, age of credit, mix of credit and credit inquiries. Credit utilization is the 2nd largest factor in determining your credit score. Today's blog from your Lake of the Ozarks mortgage lender discusses what credit utilization is and how you can manage it to get the best credit score.

What is Credit Utilization? 

Credit utilization measures the amount of your credit limit that is being used. It is the ratio of your credit card balances to the credit limits. For any easy example, let's say you have a credit limit of $1,000 on your credit card and you have bought $200 worth of stuff on it. Your credit utilization would currently be 20 percent. The lower your credit utilization percentage is, the better the effect it will have on your overall credit score. The FICO credit score model looks at your credit utilization in two ways; it looks at each card's utilization separately, and then it looks at your total credit utilization. A high percentage for either of those will have a negative effect on your credit score. Remember that the purpose of your credit score is to show your mortgage lender at the Lake of the Ozarks how likely you are to repay the money you borrow. High credit card and loan balances make you appear more likely to default on your mortgage loan payments.

Managing Your Credit Utilization 

The best way to manage your credit utilization is by keeping a low credit card balance. Keeping your credit utilization below 30 percent is ideal. One way to do this is to make your payments early, before the billing cycle ends and the payment is due. Just paying your bills in full each month isn't going to work, because the credit card companies send your information to the credit reporting agencies at the end of each billing cycle (which is before you get your bill and likely before you make any payments). The good thing is that high credit utilization won't hurt your credit score in the long run. As soon as you're able to pay down your balances, your credit utilization will decrease and your score will go up.

If you're concerned with your credit utilization and how it will affect your chances at getting approved for a mortgage, contact your local lake lender at 573-746-7211 to discuss your unique situation. Together, we can go over your options and see what needs to happen in order for you to be approved for a mortgage loan at the Lake of the Ozarks. I'm here to help you every step of the way, and get you into your dream home at the Lake!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.