Senior
House Calls
Senior
Credit Scores High
What is a credit score and what does it mean to you?
Remember
when people were appalled about buying things on credit?
Some folks said that they wouldn’t buy something
unless they had the cash for it... well times have changed
for a lot of people and so has the credit story. Your credit
score is a numerical representation of a person’s likelihood
of defaulting on a loan, based on that person’s credit
history and credit habits. Bankruptcies, lateness of payments
and the total amount of available credit along with outstanding
debt are all woven into the calculation. National credit
reporting bureaus calculate the score and sell the scores
to lenders with credit reports. Lenders use these scores
to help them make decisions about the credit worthiness of
the applicant. The thresholds for credit scores vary from
lender to lender. A score above 700 nets the best loan terms
while scores in the 500 range could push the applicant into
subprime lending market. Scores in the 600’s have some
flexibility in interest rates and terms. Here
are some tips to help score high on credit;
- Pay all bills on time
- Don’t run credit cards to the max
- Don’t apply for every credit card there is
- Pay off balances and close accounts with care
- Keep the credit card you’ve had for the longest period
of time.
Hope
you enjoyed this weeks edition of SENIOR HOUSE CALLS and
feel free to contact Fran Reali your Senior Real Estate
Specialist at (718) 442-5200. |
