Improving Your Credit Rating



CMPS professionals are committed, qualified and equipped to help improve client’s credit  ratings.   Credit scores usually determine the price one pays for money (mortgages, auto loans and leases, credit cards, insurance, etc.).

Credit scores range from 350 to 850, with 850 being the best possible score to receive.   There are five factors that determine a credit score:

Payment History – 35% impact to score.   Paying debt on time has a positive impact.  One of the most important factors as far as payment history i whether or not you’ve had any mortgage lates in the past 12 months.  Bankruptcies and judgments are another area of importance.
Balance Due vs. Available Credit Line – 30% impact to score.
Keeping    balances below 50% of the available limit is very important.  Keeping balances below 30% of available credit is even better. 
Credit History (how long your accounts have been opened) – 15% impact to score. The longer your accounts have been opened, the higher your scores will be.  Closing accounts that are established may lower your score as will opening new credit accounts.
Type of Credit – 10% impact to score. Having 305 revolving accounts is optimal as is having a mortgage.  Thrifts  can bring down your scores.
Number of Recent Inquires – 10% impact to score.   Inquiries affect the score for one year from the time an inquiry is made. Multiple auto and mortgage inquires are treated as one inquiry if made within 14 days of each other. 

Free Annual Credit Report