David Deem 714-997-3486 Dave@DeemTeam.com Your credit scores are based on several factors, including your credit card balances, the amount of credit you have available, your payment history and the length of your credit history. You may not realize how some actions or mistakes can impact your credit scores. Carrying High Balances or Using a High Percentage of Your Available Credit Having high credit card balances can be problematic. You may struggle to cover your monthly payments and interest charges can cause the balances to keep growing.  A high balance can also cause you to have a high credit utilization ratio, or percentage of available credit you’re using. When that ratio creeps up, your credit scores can go down. You should aim to keep your credit utilization ratio below 30%. Transferring all your balances to one card may make it easier to handle your monthly payments and help you qualify for a lower interest rate, but it can also have a negative impact on your credit scores....

David Deem 714-997-3486 Dave@DeemTeam.com What Credit Score Do You Need for a Mortgage? According to data from the most recent  Origination Insight Report  by  Ellie Mae , the average FICO® score on closed loans reached 753 in February. As lending standards have  tightened  recently, many are concerned over whether or not their credit score is strong enough to qualify for a mortgage. While stricter lending standards could be a challenge for some, many buyers may be surprised by the options that are still available for borrowers with lower credit scores. The fact that the average American has seen their credit score go up in recent years is a great sign of financial health. As someone’s score rises, they’re building toward a stronger financial future. As more Americans with strong credit enter the housing market, we see a natural increase in the FICO® score distribution of closed loans, as shown in the graph below: If your credit score is below 750, it’...

David Deem 714-997-3486 Dave@DeemTeam.com If you’re looking for a new house and plan to apply for a mortgage, the lender will closely scrutinize every aspect of your finances. If a lender approves your application, it will check your credit again shortly before closing to see if there have been any changes that are cause for concern. Applying for a new credit card while looking for a house could jeopardize your chance of getting approved for a mortgage at a competitive interest rate, or of getting approved at all. How a Credit Card Application Could Affect Your Mortgage If you applied for a credit card, the issuer would check your credit report. That is known as a hard inquiry, and it could negatively affect your credit score. The drop might be relatively small and temporary, but it could make a difference when applying for a mortgage. A FICO score is based in part on the average age of your accounts. A new credit card would lower the average age of your accounts and ...

David Deem 714-997-3486 Dave@DeemTeam.com By Bill Gassett We should all make sure we look after our finances, especially when a home purchase is on the horizon. Your financial well-being can have a huge impact on the interest rate you'll end up paying on your mortgage. Most lenders, whether U.S.-based or not, are going to check your financial status before they even start talking about prevailing mortgage interest rates. In other words: Your credit score really matters! It all starts when you get your first job or credit card. These days, many leading credit agencies take into account credit cards controlled by parents, as well. As long as your credit card has your name on it, you will have started what can only be described as your "credit career." It's vital to look after your credit if you want to pay less for future loans such as mortgages. Your credit score can have a dramatic effect on being able to achieve the lowest home mortgage interest rate...