One of our credit companies has developed a great tool for borrowers who have credit issues and need to improve their FICO score. After analyzing the customer’s credit report, an action plan is developed and a target score is identified. The customer has access to a score simulator to see the impact different actions have and the effect it will have on their credit score. For example, if the action plan identifies the need to pay off revolving debt, the customer can see the impact of paying smaller amounts or paying down different credit cards. The customer will receive a monthly update and what has been done during the last 30 days. There is a monthly fee of $24 and no minimum contract.
In general, consumers should:
- Keep outstanding credit card balance at 30% or less of the credit limits.
- Don’t close old credit cards as this could shorten the average age of your accounts. It’s better to cut up old cards and not use them.
- Keep credit inquiries to a minimum by not applying for new debt.
- Avoid late payments by making at least the minimum payment.
- Foreclosures, bankruptcy and collection accounts will take longer for the score to improve
Please let me know if you have someone that could benefit from this service.
Rates closed as follows:
30 YR: 4.5% (APR 4.6%)
15 YR: 3.375% (APR 3.6%)
7 YR ARM: 3.375% (APR 3.5%)
FHA: 4.0% (APR 6.0%)
30 YR JUMBO: 4.375% (APR 4.5%)