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 Your credit score is one of the most important factors used to decide whether you will qualify for a major loan and what its terms will be.  Every day we see many would-be borrowers denied loans, while consumers with strong credit histories are getting great rates on mortgages, car loans and student loans. Understanding how your credit score is formulated is your first step when applying for a loan.

avoid multiple credit inquiries
Too many credit applications can lower your score. Multiple inquiries signal          Plan ahead
that you are having trouble securing a loan and may be a credit risk or                       Don't open new credit card
undesirable borrower. However, multiple inquiries from the same type of                accounts right before applying
lender, such as a mortgage company, are counted as a single inquiry if sub-             for a home or car loan. Having
mitted over a short period of time.                                                                                                too much credit can hurt you.

 reduce your debt-to-income ratio                                                                                                Four Parts to Credit Scores     
Creditors look for an optimal total debt load of around 36 percent of your                1. Your payment history (35%)
household income. If your monthly mortgage, car loan and revolving credit           2. How much you owe (30%)
card payments total more than 36 percent of your monthly salary, you will             3. Length of credit history (15%)
likely need to find a way to lower your overall debt before applying for a loan.        4. New credit & other factors (20%)

always pay more than the minimum due                                                                                     Get Our FREE Report
The easiest way to raise an ailing credit score is to make all your loan payments     Get our newest report titled
on time every month. Over the span of several months, you will likely see your      Creative Ways To Buy A Home.
credit score improve. When making credit card payments, you should set up           If your credit situation is less
automatic payments and always pay more than the minimum payment due.             than ideal, call us, we can help!

credit problems? wait a year
Wait 12 months following a credit problem before applying for a mortgage or
a car loan. You will be penalized less for problems that are more than a year old.

Contributed by Al & Dee Allegue
Contact Us | (228) 374-0002 | www.alndee.com
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