How To Maintain a HEALTHY Credit Score

Are you wondering if no credit is just as bad as poor credit? It can be. You need to have at least a few established credit accounts to develop a score, and you need a score for most loan programs. It's great to keep your spending under control by only using cash, but if you ultimately need to finance the purchase of a home, the sooner you solidify a good payment history the better. Without using credit, there's nothing for the bureaus to use as a basis for their scoring algorithms. A good mix makes for the best start. For example, get a bank overdraft credit line, a credit card and an installment loan, such as an auto or personal loan. Reach out to our local mortgage company at the Lake of the Ozarks today, and we'll be happy to answer any questions you may have. Call MHQ - Mortgage HeadQuarters today at (573) 302-9990. Recent tallies show a third of U.S. credit scores fall below 649. While not impossible, acquiring a mortgage loan at the Lake of the Ozarks will likely be more difficult and more expensive at this level than with higher scores. Keep reading this week's blog for a few fundamentals to guide you in establishing and maintaining a healthy and legitimate score.

The somewhat obvious:

• Borrow only what you can afford to repay.
• Make all of your payments on time.
• Avoid excessive requests or inquiries for credit
• Have an emergency account to pay for unexpected expenses
• Check your report annually to contest and remove any erroneous information.

The not so obvious:

• Do not open new store credit cards just to save on a purchase. New accounts can lower your score, and too many payments can be difficult to manage. Saving 10% on a $300 lawn mower means little if it costs you even just fractionally more on a $300,000 home loan.
• Do not open new accounts just to transfer balances for an introductory rate. In addition to possibly lowering your score, these offers often have traps. Instead, use them to leverage a lower rate from your existing card company.
• Do not close old accounts. If you have a good record of payments on old accounts, these will benefit your score. Using them occasionally and conservatively will keep them active and contribute toward a good score.
• Do not be afraid to use credit. Without the use of credit, you will have no score, and that can be just as bad as a low one.
• Keep a high credit line and a low balance. Credit utilization ratios measure this relationship, and lower is better.
• Maintain a variety of account types. A combination of revolving, installment and secured financing along with excellent records of payment will yield a higher score. Still, don't run out and open an account just to have diversity, as this is the least influential factor.

You may find maintaining a healthy credit score challenging at times, but our mortgage professionals at the Lake of the Ozarks can help you. If you are looking to buy a home and need a mortgage company near Osage Beach you can count on, please do not hesitate to call MHQ - Mortgage HeadQuarters today at (573) 302-9990. We are here for you!


Mortgage Headquarters of Missouri, Inc
4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065

Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917

NMLS # 1229111

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