Credit Scores Explained in One Easy-To-Read Chart

Ever wonder why your credit (aka FICO) score is what it is? Do you think it’s lower than it should be especially since you’ve never had anything repossessed nor ever been foreclosed on? Well, here’s an easy-to-read chart explaining how not paying your credit card bills on time can effect your credit score (click chart to enlarge)…

(courtesy of SpendOnLife.com via AgentGenius.com)

5 Things Not To Do Before Buying a Home

There’s a great article over at The Consumerist on 5 things you should avoid doing before buying a home. It’s a definite “must read” for all those considering buying a home.

Here’s an excerpt:

1) Don’t apply for new credit – When you apply for new credit, the creditor will do a “hard” inquiry (aka pull your credit). An inquiry will lower your credit score by as much as 5 points. The offer you just got in the mail or sitting in your inbox may be great, but it will cost you in the long run.

2) Don’t increase your debt – Taking on new debt will affect your debt-to-income ratio as well as your credit score. This translates into a higher interest rate.

3) Don’t accept any “same as cash” offers – “Same as cash” is basically a short-term or new loan as far credit scoring companies are concerned and will hurt your credit. Even if you save some money short-term (the “0% for 6 months” deal), you’ll pay a higher interest rate because your credit score is lower.

And I’d like to add a number 6…

6) Don’t forget to check with your loan officer first - Don’t restructure current debt, sell your car or move around large amounts of money between accounts, your spouse, family members, etc., without consulting your loan officer first. You’d be surprised at the impact something that you consider “logical” or ”small” may have.