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  • Can you Hit a Perfect Credit Score?

    Posted by Charli McKenzie

    My husband and I are in the process of buying our first home and I never realized how much 'credit scores' effect your loans..UGH, we are building our scores up though, this is a great way to start.... 

     

    A person's credit score, which may differ by reporting agency, affects both his and her ability to qualify for different types of credit and to receive favorable interest rates. Based on national averages in December 2010, a homeowner applying for a $200,000, 30-year fixed mortgage with a credit score between 760 and 850, for example, may receive a 4.353% APR, resulting in monthly payments of $996. The same loan for a person with a lower credit score between 620 and 639 would result in a 5.942% APR, or $1,192 per month. Over the life of the loan, the person with the higher credit score would save approximately $70,000 in interest. While many people strive to achieve the highest credit score possible, few will earn that elusive perfect score -- the 850.

    Keeping Score
    Credit scores range from 300 to 850. According to MyFICO.com, approximately 13% of FICO credit scores exceed 800, and only 1% of consumers achieve a perfect score of 850. In general, the higher the score, the lower the risk to any potential lenders. Five factors are included and weighted in calculating a person's credit score:

    1. 35 percent -- Payment history

    2. 30 percent -- Credit utilization

    3. 15 percent -- Length of credit history

    4. 10 percent -- New credit

    5. 10 percent -- Types of credit used

    The One Percent
    While many people have excellent credit scores, what are 1% of Americans doing differently than the other 99%? Since a perfect score is so difficult to earn, those who do achieve it are often actively and consciously trying to do so. Whether you are gunning for a spot in the top or simply trying to improve your credit rating score, these tips can help.

    Pay bills on time -- Even one late payment can hugely impact a person's credit score. Paying every bill on time -- from credit cards, mortgages and medical bills -- is important to maintaining or achieving a high score. A perfect credit score will typically show no late payments in the last seven years.

    Use only a fraction of your available credit -- In general, the less credit you are using, the better. The ideal number to aim for is to use only 10-20% or less of your available credit each month. Thirty-percent of your credit score is based on credit use -- the ratio of your debt to your credit limit. The higher the number, the lower the credit score. People with perfect scores usually have a low utilization rate of less than 10%.

    Review your credit report -- Looking at your own credit report will not negatively impact your credit score. Consumers are entitled to at least one free credit report each year from one of the three major credit bureaus, and should review the report for any errors such as incorrect credit limits or delinquencies.

    Manage your credit card quiver -- Too many credit cards can make you appear desperate for credit. As such, it is better to have only a few credit cards, with the bulk of spending placed on one card since you can be penalized for having multiple large balances. Many issuers now automatically close inactive credit cards, so be sure to make small charges every few months on the lesser-used card(s) to keep the account open; otherwise, request that the account be closed.

    Diversify your credit -- Having multiple types of credit is a plus when it comes to your credit score. A consumer who has a variety of debt types may be considered financially responsible (assuming the payments are being made on time). Credit cards, mortgages, automobile loans and retail accounts can increase your credit score -- to a point. Too many accounts may reduce your score. A good number to aim for is six: this is the number of accounts that perfect credit holders typically have.

    Wait for it -- It takes time to build credit and to get a perfect credit score. Ten years of positive account history is generally needed to score above 800; people with a perfect score opened their first account 20 years earlier.

    Is 850 Worth the Effort?
    Is getting a perfect credit score worth the effort? In general, no. Consumers with perfect scores probably will not have access to better loan rates than those with scores in the upper 700s to low 800s. In fact, when it comes to mortgage rates, the best APR rates are awarded to those in the 760 to 850 range, so there may be little financial reward for reaching 850. That said, like going for an Olympic Gold medal, or earning a 2400 on the SATs -- some people simply want that perfect score.

    The Bottom Line
    Can you score a perfect 850? For most people, the answer is probably not. Those who do earn an 850 are committed to the cause, actively evaluating and controlling all aspects of their finances. A credit score in the high 700s is likely to land consumers the same advantages as a perfect score, but 1% of Americans will succeed in reaching the perfect 850.

    Investopedia



    Credit scores are statistical calculations used to determine a person's creditworthiness. The most common credit score is the FICO score, named after software developer Fair Isaac and Corporation. FICO scores are typically provided to lenders by the three major credit reporting agencies -- Experian, TransUnion and Equifax -- to help lenders assess their risk in loaning money to individuals.

     

     

  • 22 of the DUMBEST things people do on facebook

    Posted by Charli McKenzie

    Im embarrassed to say I do about 6 of these....

    ~Charli

    1. Automatically post your twitter updates to Facebook

    2. Post your baby's photo as your own

    3. Post updates while getting married

    4. Play Farmville, mafia wars or any of those other time sucks

    5. Post every time a famous person dies

    6. Drink & Facebook

    7. Post the pics of your underage beer bong party

    8. Do a video appeal in the shower about needing a place to live

    9. Misspell stuff that the whole world can see

    10. Post on a former U.S. President's Facebook page

    11. Talk about how much you hate your job

    12. Break into someone's house and log into your Facebook account

    13. Mock the cops

    14. BBQ endangered animals and post the pictures

    15. Tell people you are going out of town

    16. Post verdicts of trials that are still in progress

    17. Poke someone

    18. Spew about how freakin' in love you are

    19. Go on medical leave and then upload pics of you whooping it up

    20. Throw a sick pet pity party

    21. Comment on photos of people you barely know and haven't seen in over a decade

    22. Let anyone tag a photo of you ever

     

     

  • Now this..is a feel-good story!!! Helping out an 8 year old

    Posted by Charli McKenzie

    8 year-old Elizabeth Hughes made her debut signing the national anthem at an AHL Norfolk Admirals (the Tampa Bay Lightning's affiliate) game against the Connecticut Whale (New York Rangers' affiliate) last Friday night.

    Suddenly, her microphone cut out.

     A woman in the crowd cackles at this moment; not laughs, cackles. You then hear someone "shoosh" those like her during the brief silence. You then hear the crowd pick up the tune in unison.