provided by Published 9:00 am CDT, Monday, May 20, 2019 MoneyTips Do you have excellent credit, with a credit score between 801 and 850? If not, it may help to review the common habits of those who do. A credit score is a single number based on your credit report, which is a history of all your borrowing activities. A higher credit score shows lower risk to creditors, allowing them to offer lower interest rates. LendingTree recently analyzed credit reports of high-credit-score Americans to look for common threads in their credit profiles. As expected, they closely track the major factors that go into calculating a credit score. On-time payments are the most important factor affecting credit scores. The average American has around six late payments in their credit history, but everyone with credit scores above 800 in the LendingTree analysis had a 100% on-time payment rate. That's true across all generations and all demographics. Credit utilization is the next most … [Read more...] about What People With High Credit Scores Share
High credit score
provided by Published 9:00 am CDT, Wednesday, May 1, 2019 MoneyTips Can you raise your credit score by taking out a personal loan? You can if you borrow responsibly – and a new study from LendingTree.com shows that borrowers with lower credit scores can see significant benefits. Outstanding personal loan balances have nearly tripled since 2011, rising from $46.4 billion to $125.4 billion by June 2018. While that's a small slice of America's $13.54 trillion total household debt, the effect on credit scores shouldn't be ignored. LendingTree found that 62.4% of personal loan recipients had a higher score one month after receiving a loan – surprising since pre-loan credit checks from lenders should drop scores slightly. The credit score increase in the first month may come from borrowers shifting high-interest balances to a more manageable personal loan and making an impact with their first payment. According to LendingTree, 61% of 2018 personal loans were used … [Read more...] about Most Personal Loan Borrowers See Higher Credit Scores
provided by Published 9:00 am CDT, Monday, April 29, 2019 MoneyTips If you're in the market for a home, a high credit score is key to qualifying for a mortgage loan and getting the lowest interest rates possible. What do you do if your credit score is toward the lower edge of qualification? The March 2019 Chartbook from the Urban Institute's Housing Finance Policy Center has good news for you. Median FICO credit score limits dropped from 730 to 727 from November 2018 to February 2019 – not much of a change, but every point matters when you're near the edge. The housing crisis drove qualifying FICO credit scores for mortgages up significantly. Median scores for mortgages rose from 700 pre-crisis to 733 in 2013, but at the 10th percentile – generally the lowest acceptable credit score to qualify for a mortgage – borrower scores rose from less than 600 to just over 650 in 2013. As of February 2019, the 10th percentile borrower credit score was at 642, … [Read more...] about Credit Score Limits Dropping For Mortgages
provided by Published 3:00 pm CDT, Thursday, April 25, 2019 MoneyTips Few things get people more fired up than rivalries between states. State lines become battlegrounds over sports, economics, culture ... and credit scores? A credit score comparison may not have the same intensity as a college football game, but we're Americans. We make everything a competition. So, who's number one in high credit scores? According to the latest Experian State of Credit report, Minnesota tops the list with a 709 average on the VantageScore scale (ranging from 300 to 850). The report, released in 2018 using data from 2017, shows strong regional blocks of credit score trends. Nine of the top ten credit score states are located in either the upper Midwest or the Northeast. Behind Minnesota, the top credit scores are Vermont (702), New Hampshire (701), South Dakota (700), Massachusetts (699), North Dakota (697), Wisconsin (696), Iowa (695), Nebraska (695), and Hawaii (693). The ten states … [Read more...] about How Does Your Credit Score Compare To Your Neighbors?
provided by Published 9:00 am CST, Tuesday, March 5, 2019 MoneyTips Your credit score is a valuable asset that must be maintained and protected. Unfortunately, there are ways that other people can negatively affect your credit score – either inadvertently or with bad intent. Protect your credit information by carefully monitoring these five potential paths to a reduced credit score. 1. Joint Accounts – Joint checking accounts can backfire if one partner abuses the account. Overdraft fees and other penalties can affect your credit score even if the other partner is responsible. If you decide to cancel a joint account, be sure all parties are involved in the cancellation. You may still be responsible if one party leaves the account open but abandoned with unpaid fees and penalties. Risks of joint accounts go beyond credit considerations, since one partner may clean out the account at any time with little recourse for another to reclaim the funds. Enter into … [Read more...] about 5 Ways Other People Can Lower Your Credit Score