Credit maintenance is very much important for a real estate investor and one should really be aware of it. An investor should understand the limitations of bad credit and the benefits of excellent credit. Lets have an over view of how to calculate credit scores and to increase it.
Credit scores are calculated using a wide range of information. The incidence of paying late and your mortgages, car loans, credit cards, personal loans are all considered. Hence you should pay your mortgage first when there comes a situation to pay mortgage and utility bill.
There are certain areas of credit which are less understood like your average age of credit account because credit bureaus prefer to look older accounts. Its always good to keep your old credit card accounts active with low balances because older accounts reflect positively.
Credit bureaus always look for your low balance on credit ratio and this will reflect positively on your score. You must obtain a copy of your credit score every 4 months because mistakes are tend to happen on credit reports due to misreporting or credit bureau errors and this is a fast way to improve your score. Pulling your credit report too often will have a negative impact on your credit and improving your credit should be your top priority. Buy more and pay less which will ride on your score.
For more information visit: http://www.rementor.com/n-apartmentinvesting.shtml
Credit scores are calculated using a wide range of information. The incidence of paying late and your mortgages, car loans, credit cards, personal loans are all considered. Hence you should pay your mortgage first when there comes a situation to pay mortgage and utility bill.
There are certain areas of credit which are less understood like your average age of credit account because credit bureaus prefer to look older accounts. Its always good to keep your old credit card accounts active with low balances because older accounts reflect positively.
Credit bureaus always look for your low balance on credit ratio and this will reflect positively on your score. You must obtain a copy of your credit score every 4 months because mistakes are tend to happen on credit reports due to misreporting or credit bureau errors and this is a fast way to improve your score. Pulling your credit report too often will have a negative impact on your credit and improving your credit should be your top priority. Buy more and pay less which will ride on your score.
For more information visit: http://www.rementor.com/n-apartmentinvesting.shtml
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